For such a simple little question, it sure sparked a big debate!! (Over things tottally un-related i might add). I think you would find it much easier to just post a new question asking whatever it is you want to know. Generally, the people here are pretty helpfull (even if they do occassionally get side tracked… and can’t spell)

What is it…[Read more]

Monopoly,

Let me ask you this question… If you knew of an investment that would return you 10% relatively safely, and I offered tto lend you money at 7%, how much would you borrow?

Different people have different risk tollerances (I can’t spell), but personally, I would borrow as much as they would lend me. What you need to do, is find an…[Read more]

This is a popular topic, I thought I’d throw my 2 bob in too. The one problem you have talk to Aussie accountants, it they are not (ussually) familiar with NZ tax laws.

I have done a bit of investigation on this front and here is what tI have come up with. You buy under a New Zealand trust. First of all, you now don’t have to pay capital gains…[Read more]

Redka,

Don’t take my word for it, but i was just talking about this to my NZ broker the other day, and he said alot of people are trying to have a company own the trust, and the banks are not keen on the idea. He makes the point that banks are usually very conservative, and often balk at anything new or different.

Like I said, double check it, I…[Read more]

Hi,

I wrote to a stack of mortage brokers asking the exact same thing. I got alot of people saying it is impossible to get more than 80% LVR, but some said they have done it for Aussies before, it depends on the area in NZ you want to invest. Here is a list of email addresses of a stack of brokers. Hope it…[Read more]

I have also been doing loads of research into the NZ market (and bought a couple), and what I have found is that the capital cities have just about had it, but the areas a couple hours out of the capital cities look set to boom. You can get rental yields of up to 12% and if NZ is anything like Aus was (which it usually seems to follow), these…[Read more]

The general rule is, if you spent money on something that will earn you money (hence be taxed), it is tax deductable.

Dan.

If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.

Keggles,

No one else answered, so i thought i’d have a crack. Have you thought about buying an option? This is pretty common with developements. Take an option, get DA approval, then get the loan. Make sure you capitalise the loan (pay principle and interest all at the end) so the interest doesn’t eat you alive. Alternatively, you could do the…[Read more]

Showus,

The easiest, well proberbly not, but the most accurate way of checking out average rent for an area, is by going to all the real estate agents in area and picking up thier weekyl listing. The real estate agents are usually pretty close to each other, so it is not too much effort, and gives you a good accurate figure.[]

Dan.

If you want…[Read more]

There are other ways of getting no cash down though. One for example… as we all know there are bargins out there, people who want out of thier properties, and are prepared to take under market value. Instead of paying them less, you could instead (or as well) bargin for more flexible terms. eg. The seller carry a note for 10% secured by a second…[Read more]

Cheers PeterM,

Sounds like you know alot about this sort of stuff. I almost fit into your description, I have a bit of time, and would love to look for development property… I am even a Sydney sider, but unfortunately I am not there at the moment. I am living in the UK and proberbly will be for the next year or so (hence why my posts are at…[Read more]

Marekm,

The only thing to consider (actually, it’s not at all… but one thing to consider) is make sure the council will allow you to subdivide before you place the option. (Otherwise you will waste your option fee)

Funny you should post this though, because I have another idea kind of similar… If anyone could give me thier thoughts on this…[Read more]

PeterM,
Are you sure you meant “Your suggestion doesn’t work” and not “I don’t understand how your suggestion works”. If you are a solicitor, or have tried this, stop me now, before i look too silly. Other than that i will try explain myself a little better, because from your objections, i don’t think you understood me.

“In the first place if you…[Read more]

I think the only way to get a discuont by buying of the plan these days is buying alot of units. If the builder thought he could sell all his units in one hit before even starting, that kind of security might persuade him to give a discount. Aside from that, the market is so hot at the moment, you don’t get any discount for buying 1 property off…[Read more]

Robert

You can make it a little “less illegal” by making the $50,000 for a reason. For example “Purchase price $250,000 with a $50,000 refund for early settlement” or “for neccesary repair work”.

That aside, since the banks always value the security of thier loan (the property) you can only get away with this if you are getting a bargin. If you…[Read more]

Ok, The rent you recieve from the property is income, and gets taxed accordingly. Since you borrowed (in this case) the $80k to invest in a income producing asset, any interest you pay on that $80k is tax deductable. Assuming the interest on the loan is roughly the same as the rent recieved, they cancel each other out (tax-wise)[8D]

Dan.

If you…[Read more]

quote:
Hi William
I’m also freezing here in Adelaide. I’m new to this investing so called “game” I have a question to ask you, and you may think I’m a bit thick [] but in regards to using equity as a deposit. How then do you get the funds to purchase the property, How does this work? []
Bernadet

Bernadet,

You have 2 choices, you can either…[Read more]

William,

That is the exact reason this site is a big advocate of +ve geared properties. You just don’t get those problems if you are +vely geared. Maybe for your 3rd IP, find one that will be +vely geared, then servicabilty is not an issue.

Dan.

If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t…[Read more]

Antoin,

with questions like this you will get a much better response if you post it on the general property forum. Alot more people read it.

Dan.

If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.

Commercial property tends to have higher yields, such as 10% from rent, plus lower costs (not having to pay water etc.) The leases are usually for a longer term (5-10 years), but if you get a vacancy, these tend to be for longer periods also. Just droping the rent a bit doesn’t always help.

Dan.

If you want an extraordinary life you have to be…[Read more]