The budget was lacklustre. A budget by politicians bereft of vision, with micro 'cajones" and indebted to greedy, avaricious mining companies, bank and major corporations. The current government has nothing to offer and the opposition are little better.

Democracy has sunk to its lowest ebb. Representing the people is open to everyone, just like the Ritz Hotel! Just make sure your financial backers coffers are full and success is well-nigh guaranteed.

The government's actions, the 'stimulus' etc. did not save Australia from the GFC. It was a fortuitous chain of events that meant our banks were not loaded up with toxic sub-prime mortgage securities and our overall economy was tied in to the Asian (read China) resource boom. It was luck more than good planning, but naturally the government takes credit..

The issue the government now faces is a two-speed economy with mining and resources on fast forward and virtually everything else at a standstill. Not healthy. And banks which are sitting with the majority of their lending in residential mortgages in a falling (not slowing) market, where home owner's equity is being whittled away and where our houses are still massively overpriced by world standards.

Solutions are hard to come by and not for the faint-hearted (read 'politicians'). So there is likerly to be a lot more pain to come. And don't get me started on supposed low employment.! The mining sector is short of skilled labour but many Australians are nominally employed but vastly underemployed. Permanent full-time employment is becoming very much the exception not the rule.

I hope I am completely wrong in the above assessment, but am not holding my breath.

Hi Rita.

Not sure on 50%, CGT is not my specialty (I hate it! Aussie is first country I have lived in with CGT).

Probably best to invest via a NZ legal entity(?), so that any gains via sales can potentially be reinvested in more properties without triggering a tax event, but not sure? Maybe Aussies with IPs in NZ can comment?

Cheers[]

Sounds a bit like life really, and Westan you’re repeating yourself.

Cheers.[]Bianca.

Leigh,

‘Bianca’ was a joke right? ‘Cos surely no female would write as pedantically as I do?

“Doctor I’ve got a cricket ball stuck up my backside.”
“Hows that?”
“Don’t you start!”

Cheers[]

Jenman is just another businessman peddling his wares. Some of what he says makes good sense, some doesn’t – so discernment is the key.

My philosophy is that when you continually seek to undermine the other’s position, you ultimately undermine your own integrity.

“Methinks he doth protest too much.”

Cheers[]

If you find a cashflow +ve IP great. Just ask yourself – will it still be +ve if interest rates increase by 1-2% and rentals don’t increase (assuming you haven’t locked in a fixed interest rate)?

If not, can you carry the -ve cashflow from other income streams? Understanding that there might be little capital growth in the short-term.

If the answer to the above is yes, and you have done due diligence then go for it. If any answer is no, formulate a fallback plan if things go swampy. If your fallback plan is sound, proceed cautiously. If you haven’t got a fallback plan that is acceptable to you, think twice before proceeding.

My ten cents worth.

Cheers[]

Rita.
As you’ve probably worked out by now, thread titles go from blue to purple once you have accessed that thread.

The only name in purple should be your own.

Cheers[]

Wow!

Instant response. Thanks Andrew.

Cheers[]