Hi

I’ve only heard the term cross leases in reference to NZ.

Here’s some info that may help out (from a NZ perspective)

http://www.blomlaw.co.nz/buyers.htm

Cheers

David U

Hi

In addressing point 1) I believe it has to do with purchasing intent in NZ.

i)If you purchase a property with the intention of a quick reno and flip, then you are deemed to be a property trader and the property in question is treated as ‘trading stock’ and income tax is payable.

ii) If you purchase a property with the intention of holding it as a long term buy and hold, then there is no capital gains tax payable.

How you prove what your initial intent is/was, I’m too sure.

I read somewhere that some investors make a stat dec when purchasing stating ‘Property X is purchased for the purpose of a long term rental etc etc’ in order to cover themselves if they change their mind after purchase and the IRD (Tax Office) coming knocking at their door.

What time period constitutes a long term buy and hold and also what happens if the intent changes once purchased, I am unsure of as well.

Hope this little bit of info helps

Cheers

David U

Hi

I 100% agree with Bruce on one thing… About the herd mentality that is going around at present.

My ‘perception’ is that many are currently in a buying frenzy (buying willy nilly), ie a ‘smash, grab and think later’ mentality. On a mission to acquire the ‘elusive’ regional town cash flow positive property.

There really has to be some thought of an exit strategy and a contingency plan for the worst case scenario.

I do believe in buying where-ever the numbers make sense but this must also be counter-balanced by sensible economic data.

For example,does it make sense to buy in regional towns that one has little or no knowledge about, that has downwards trending population growth, high unemployment and not a major industry or employer in sight?

Having a growth strategy (which Bruce is alluding to) working in conjunction with a cashflow strategy seems to me to be the best of both worlds.

P.S. You should all know the fate of lemmings…. Think about it

Just my 2 cents

Cheers

David U

Hi Westan

I’m heading for Christchurch, so we’re heading in the same direction mid next year (probably earlier), as have still have a number of loose ends to tie up here.

Glad that you’ve had some success over there. If you would like to discuss, please feel free to contact me on [email protected]

Cheers

David U

Hi

I guess it depends on what you call ‘best’?

If you’re asking about CF +.? Answer is: Everywhere

David U

Hi HWD07

“Put all your eggs in one basket… and watch that basket carefully” Warren Buffet

and who am I to argue with the great man??[]

Cheers

David U

Hi

Funny…Just over 20 replies and virtually everybody thinks that they’re a giver.

What does this mean?

Either, we’re a bunch of excpetional people; or

We’re pretty much all delusional…[]

Cheers

David U

Hi

With the excess of properties currently on the market that you mention; how can you be sure you will get a tenant and how can you be sure that you will get the lower than expected rent that you mentioned?

I guess the question I am asking is that ‘How would you feel and would you be able to manange financially (and how long) with NO tenant in place? ie Are you 100% prepared for the absolute worse case senario and how long can you ride it out?

Dependant on the answer, this should guide you in making your keep/sell decision.

Cheers

David U

Hi Alex

Well done!!!

I really understand that feel (fear, excitement and anticipation plus many more emotions) of faxing off that first offer.

Hope it all goes well

Cheers

David U