My gut feeling would be that you should consider a NZ incorporated company as trustee.

Don’t panic. In some of the towns I’m looking at prices are falling, not increasing.

I’d suggest that you work out what your strategy is:

1. Is it +cf or are you looking at -ve gearing where capital growth might occur. This will help you narrow down where you’re looking.
2. Do you have the time/skills for renovation, is cordinating…[Read more]

You need to take your contract and talk to a lawyer. There could be a whole range of issues eg who determines if they are entitled to an extension, have they failed to do enough in good weather. This is all going to depend on the wording of not only your ‘sunset’ clause but also other parts of the contract. Other issues about quality of…[Read more]

May be you should define what you mean by longterm. I sold some land in Vic years ago and the agent said they’ll offer $x for a 28 day settlement or they’ll pay your price for a long settlement. I said how long. He said 6 weeks.

Generally I’d think unless there is a particular reason eg subdivision, deceased estate, vendor waiting to complete…[Read more]

You’ve got two types of renters of sheds –
temporary eg between houses
longer term
You might not get any response from potential temporary renters
Longer term might, but probably not

If there aren’t any sheds in the district what you’re doing is also an educative process of advantages of sheds eg free up the spare bedroom, make room for a…[Read more]

Changing tax residence to NZ might have other ramifications as it might possibly trigger CGT events on your assets that don’t have the necessary connexion to australia, or if your change of residence results in your australian trust becoming non-resident.

If you’re serious about these kind of things you need to get good advice early. Read “The…[Read more]

In at least one state if the purchaser fails to sign immediately after the auction the auctioneer can sign for the purchaser

Get some professional advice. You actually will have two assets, the land which was acquired at date of contract and the building.

Also have a look at Business Review Weekly 4 March 2004

an extract:
“Income v. capital gains

The difference between income and capital gains has been the root of much tax avoidance and evasion during the latest…[Read more]

Jaffasoft,

Your figures are suggesting in 2003 1,400,000 bed nights (5 days, 4 nights) and in 2004 2,850,000 bed nights (7 days, 6 nights). This works out to be the equivalent of 3835 fully occupied single beds in 2003 and 7808 fully occupied single beds in 2004 (or if all couples 1917.5 (someone always misses out) and 3904 double beds in 2003…[Read more]

The ATO will say the purpose of your additional borrowing is to buy your new home not to create income.

Alternatives:

1.Sell your first home to your family trust which borrows to purchase.
2. Sell your first home. Put all the proceeds to your new home. Get a line of credit on the new home to use as deposits on your new IPs

Thanks Michael for sharing this resource.

Redhaven

You’ve obviously got good knowledge of what’s happening in this area. Great that you’re looking to capitalise on this.

Maybe when you buy in this new town you should appoint as managing agent one of the agents in the other town. They’re obviously going to have qualified tenants and they’re not going to be apologetic for charging the…[Read more]

If these are older flats, you’re probably going to have to factor in stuff like new kitchens at some stage in the future if you want to keep occupancy high.

Any lawns to mow?

I’ve got an older block of flats. Maintenance is probably closer to 10%.

If you can build some equity quickly and have some contingency funds to cover some extra repairs…[Read more]

Just because a house is cheap might not mean it is undervalued. There are two components to calculating your total return on an asset, namely (cash income + price changes over the period)/price at which the asset is purchased.

In Sydney for example people have bought assets which give a low cash income because they are expecting a large price…[Read more]

What are you wanting to achieve from investing? I know towns where you have a positive cashflow, but where there aree no managing agents within 100 km, also difficulties organising tradespeople etc.

You need to work out your strategy, how hands on do you want or are you able to be.

But generally if you want +cf, you’re going to need to provide…[Read more]

Try APIMagazine. I don’t think they did rental yields, but if you can find median rentals and median prices you can work it out.

Questionable whether the result justifies the effort and time which is probably better spent trying to find new investments.

From memory, change of residence for tax purposes might also be an event triggering capital gains tax.

If you look at the Derivex.com.au website undere site updates there is reference to them seeting up a subsite for NZ.

If there’s a bank branch near the land try that bank.

Why do you think the flat does not have council approval? Have you asked the owner? Have you asked the council?

In NSW you can apply to the Council for a building certificate, which if issued means the Council will not take any action.