Forum Replies Created
- Originally posted by dohicky:
Anyway, onto the buying option… You need to be a tax resident here to buy.
Sorry this may have confused some people, if you are living in the UK you have to be a tax resident to buy property, this is not the same for non-residents.
I’m sorry if this confused some non-residents about their ability to purchase here, I was just commenting on Carl Alexanders particular situation.Dohicky
Hi Andy,
Wow what a year.
OK So in 2006 it started with my first NZ IP bought through DLPP in Jan 06, on the latest valuation that was done in Dec 06 this property has so far increased in value by approx 24%. Very Happy [biggrin]
Second property move was a sale of my Sydney flat when I moved to London. It had increased in value by 23% after I spent roughly 7% of the original property value on renovations. Nice cash profit when I sold it.[biggrin]
Third thing I did was buy a second NZ IP through DLPP which settled in December, this property has a 10.4% yeild, so I’m happy.[biggrin]
Overall a good year of investing in property for me. Gladly the only losses I suffered was becuase of me spending property profits on stupid things like plane tickets, moving countries and holidays! [blush2]
I look forward to 2007…[thumbsupanim]
Hi There, and welcome to London! (when you get here)
I’m also on a working holiday visa, and even though you may have the impression getting work over here will be easy, think again. I came over with visions of working for a large corporate bank earning rediculous amount of money and setting myself up for a life in property.
How wrong I was. Because the working holiday visa only allows you to work for 1 year (and you need to keep records if you start temping by the way) the recruitment consultants wouldnt even pass along my resume – and It’s good! The big companies here simply will not take on anyone on that type of visa, so, before you leave try and get a highly skilled migrant visa, OR if thats not an option try looking for a job before you get here, it takes at least 1-2 weeks for your first interview, 4-8 weeks to get your first perminent job, and another month before you get paid so make sure you have enough money to live on. Renting here requires 1 month deposit up front, 1 month rent up front.
Anyway, onto the buying option… You need to be a tax resident here to buy. This means you will not be looked kindly on if you do start temping and use a limited company to get away with not paying much tax. If you are temping its unlikely you will get a mortgage because you will not be able to prove stable income. London is expensive. There are a number of first home buyer schemes out there, such as asset sharing where you only buy half the property asset and rent the other half asset until you can afford to buy that too. this of course means you need less deposit up front, but a high income to cover mortgage and rent payments.
So its likely you will need to rent to begin with, usually you can not get credit here until you’ve had three years in the UK, but some places may be more lenient. Try and work for a company as good as mine who are willing to sponsor you for a Work Permit.
London really is a place to come and experience, so most of all enjoy it while your here.
Dohicky
HI guys,
Great statistics, I’m looking into investing in the UK at the moment there looks to be some great capital gains potential.
The tenants in the UK (of which I am currently one!) do pay council tax on the property as well as the water rates too. council tax is like the land rates you get in NZ/Aus. The only things that can’t be passed onto the tenants is mortgage payments (but they do pay rent!) body corp/strata fees, and general maintenence of the property.
Dohicky
Hi Guys,
I would be interested definitely, especially with your contacts (might have been a cheaper plumbing bill than the $1400 one I got a couple of months back). You would need a nifty software accountancy package to keep track of everything too, gone are the days of a bank statement and a highlighter to reconcile things! Having a property manger with an ear to the ground and nouse for misbehaving tenants (I think you both qualify with flying colours given your previous work experience) would be advantageous for an overseas investor. Given the likely increase in rental demand for all those oil rig workers the area will soon need I think this could be a great growth area for you guys to move into. Plus once word of mouth starts you could be inundated with rental’s to look after. I have a three month “out” clause of my current property management contract as I’m sure lots of others would have too, keep it in mind.
I’m assuming you would bring others on board to assist you two with it, also would it continue if you guys decided to pack up and move elsewhere? How many Invercargill winters are you willing to live through? personally I dont think I would last even one, thats why I’m an “Invers” investor and not a resident [biggrin]
Katherine
HI Kristine,
sorry my only invercargill property is fully tenanted. I use Harcourts if that helps, but I did already have the tenant before taking it to them for property management about 7-8 months ago.
Maybe you need to take a good look at the property you have and look at what the problem is that needs a solution before you can rent it successfully. Why did the last tenants move out? was it an issue with the property? is it well maintained, have the mungrel mob moved in next door and you dont know about it? there could be so many reasons.
Good luck
DohixThe line of credit mortgage is just another mortgage product the banks have so it is not tied to having to use your PPOR as equity. you will need a deposit but its up to you how you get that.
The only restriction may be that some lenders may not allow lines of credit for investment properties, that depends on the lender you end up using.
I hope this helps, your question was a bit confusing.
which country do you have bad credit in? if its in NZ you coud have a problem, if it’s in Australia it may not show up on the NZ credit check.
If its in NZ baycorp usually hold that on your credit rating for 5 years. if you racked up the debt at 18, defulted by the time you were 19 then it looks like you have another two years to wait. Not all is lost though and it really depends on how many defults you have and the amount of them and what kind of companies they are for. If they are banks, there is no nice way to say this but you could be screwed and have to wait two more years (time for some more reading and possibly bird dogging?) If there is one small default, when you apply for your mortgage let the bank know about the default (you get no credit for lying) you may need to write a letter of explanation about the situation at the time if you have any sort of excuse.
I had this situation happen to me as when I was very young and renting I stupidly put the phone bill in my name, flatmates racked up a huge bill and had no money to pay for it (or me!) so I had a Telecom NZ default on my credit rating. when I applied for my mortgage the default was bought up and I had to write a letter to explain the situation, in my case I was only one-two months away from it dropping of my credit report and I guess my letter was sufficient enough as they gave me the mortgage and keep asking me to lend more money from them now.
I hope the experience you had earlier on has put you off personal debt!
my question is, whats wrong with the name Ryde????? I lived in ryde and owned property there, I sold it after one year (in June 06) for $50K more than I bought it for. Ryde will have nothing but good capital gains memories for me!
they should be wanting to keep the name! (except its not really east of ryde, its really east of north ryde). maybe a name change to Nor-East Ryde?
HI,
All this legal stuff could take a while and it may be contractually you owe them this sum. Just wondering if you have thought of investing $200 ish in a locksmith and get them to change all the locks for you so the builders dont have keys but you do. I know really its a moral question as to whether you would do this or not, but desperate times… desperate measures. if you need to move in over the next couple of weeks it may be an option.
Contact the company and ask to pay off the sum in installments (the $500 a months you spoke of) you never know they might have a nice office/accounts lady that could benefit from a bunch of flowers????
Good luck, I know whats its like to have your settlement date changed and have nowhere to live. Its a horrible panicky feeling. I solved it by having the previous owners let me move into the property before settlement rent free as it was unoccupied. Thats not going to help you though.
Dohicky
HI,
Unlike Australia it is the norm to list with more than one agent in NZ unless you are going to do an “exclusive” deal with one agent that is going to give you a discount.
I was recenly in NZ for three weeks and saw houses with 4 or 5 signs outside, those houses had been on the market for a while though and people are trying to cash in from the latest property boom there.
It’s not uncommon to choose two or three agents, but the best idea is to talk to them all and get a good “feel” for them, if you feel you can trust them with the total value of your property then let them list your property.
The other option is listing it on trademe.co.nz yourself, or one of the private sale companies in NZ, but only if you are close to the property as there are no agents involved.
Hope this helps!
Dohickyit depends on your coucil.
One council I have property in has valuers value the entire city (from the comfort of thier cars) every three years. Its the land they are valuing mostly as that is what you are taxed on.
Another council uses the latest house prices from recent sales.
you should probably contact your own council and ask this question of them as each one will be different.
Hi I borrowed $15K in a personal loan to complete my renovations in sydney, then i got the property revalued and moved lenders to borrow enough to pay off the personal loan and mortgage, all within 5 months. it worked well for me.
I just sold that property for $50K more than i paid for it 12 months ago with only $20K spent on renos. no cap gains tax as it was my first ppor. who said there is no money to be made in this market in sydney? you just have to work for it thats all.
Good luck, next time read the fine print, and I always ask if there is an early repayment fee with ANY lending, they must disclose it if you ask.I am loving the weak NZ dollar at the moment and considering i will be earning foreign dollars for another two years I hope it continues to drop over the next couple of years. imagine the amount of mulah i will have in my pockets when i return to nz! I could buy up all of invercagill. I’m looking forward to it.
Hi Guys, well this is right up my alley but what a bunch of misinformed people there are on this forum.
I work for Westpac so I cant say too much or I might get a phone call tomorrow morning asking me to clean out my things!
Westpac purchases and currently owns a large property portfolio, they are always on the lookout for new and exciting purchases to add to the portfolio, so assuming this is their first or largest buy up would be nieve.
You can not purchase Westpac head office becuase they own it…
To assume that Westpac is going to lend money to purchase this would also be nieve – if you buy a $100K property with cash only, would the property be cashflow positive? as long as you get a tenant and its in a reasonable area (with no *problems* needing *solutions*) you could do quite well out of that… now think about that property being worth $100,000,000!!!
Banks put property in unit trusts and have done for years – it does not mean it will only be property in that trust (also domestic shares/cash/international shares etc) Not all unit trusts run by banks are branded as being owned by that bank…
A 6% growth for business cash management investments is a nice return considering the cash rate is 5.5% and at the moment FRN’s arent getting much better.
If you borrowed $100,000,000 from the bank you would not get lunch with the board of directors, but as a consolation you might get lunch with me [biggrin] and beleive me thats far more important.
Defense housing is not too bad to get into if you are into capital gains only, which of course is not going to sit well in most of this forum’s portfolios because generally we are after different things, but my Parents have done well out of their DHA properties previously.
Each to their own I guess, the Westpac property portfolio is nothing like most of ours (if I had $100,000,000 I would not still be working for a bank) so of course their decisions will not be based on the same principles. I’m sure the bank will do well with this purchase, and if not they will get rid of it as soon as they have to. The people who make these decisions are very well informed so they would have worked this deal inside out before going for it.
Plus I work for “The Pac” and who else but me would actually stand up for a bank in this forum????????????
not personally no, but my brother and sister in law live in London and live and buy properties in Peckham at the moment. a lot of new developments are being built and a public tram system will be put in for city commuters once all of the community housing (I call them slums) have been ripped down in the next 5 years. they have experienced good capital growth already in this area and have no problems getting good tenants. The area was hit badly in WW2 and the strip that was bombed the worst used to have a canal running thru it has been drained has now been converted into a beautiful park with nice lakes etc. Its quite nice really.
2 – no its not sally but it does look a lot like her! I had to do a double take when the site changed just to make sure. Sally only does shampoo commercials unless she’s the next dancing with the stars queen…
hi guys,
yes one of the reasons i bought the place in strathern is during my research i found out that 70% of homes in that suburb are owner-occupied. That is exactly where you want your IP’s.
Home renovators aye? that mitre 10 dream home show must have finally hit the right spot in invercargill. Did you know they cancelled the aussie spin off of that “the block” in sydney. I miss that show. 57 through an open home? if its the realtor I’m thinking of i would take that with a grain of salt… could be 57 parties through all open homes for the weekend maybe, either that or its one hell of a property. I’m in sydney and the open home next door got one party through on saturday, depressing as i want to sell soon!
on Hot Property the other night there was a house for sale in a suburb in sydney and they so rarely came up that a comment was made “you practically have to wait for someone to die before you can get a house in XX suburb”. How fantastic would the capital gains be if you could secure a place like that?
it’s amazing what information goes round at the local hairdressers, great to know you guys have your ears on the ground. I’ll send you my email details again, my condolences for your hard drive loss.
no offence but it they are “giving them away” I might keep that as my own little secret…[thumbsupanim]
