Forum Replies Created
Hi Specific
I agree the figures matter most, but INITIALLY learning to add value, dealing with tradees or simple DIY is enticing.Dont forget that the figures are not the only thing.
If a property meets your financial benchmark (different for everyone) that is just the start of the due dilligence process not the end.
Good Luck.
Hi
I’m with OZI on the campervan idea. It would be a big strain for me to be confined in the van.
Re planning the trip. Definitely make appointments with everyone that you want to see.
Give agents specific criteria or you will be wasting your time being shown properties that are not for you.
It would probably be better for you to use the time to pick out some particular areas or streets that you want to buy property in.
Good Luck
This is a complex one and hopefully there are a few accountant who might have a go at it for you with some actual numbers.
The structure will obviously provide significant assest protection benefits.
However, your PPOR is CGT free. I would be interested to see what arguments come forward to support buying in the structure.
Not paying CGT could represent a massive windfall upon the sale of this proposed PPOR.
Good Luck
Hi Specific,
The price of property in some locations does make it impossible for investors to buy close to home ( for cash flow ) So I suppose it may depend on where you live.
The risks increase the further you are away from home. So it will depend on your confort levels.
Management will become crucial.
You may find that it is you ability to judge people rather than your ability to crunch numbers that leads to your success in long distance property investing.
Good Luck
what you really really dont want is a deal that the local agents have left for the aussies or the bird dogs.
.
A particular deal may be refered to as “not yet on the market” and miraculously signed up by a bird dog who lives in another country.
.
It does not make sense that the agent would not put a property to the open market if it is a valid deal.
.
So if the property goes straight to the bird dog be carefull you are not paying to much or getting “the fish john west reject”
.
So the moral – USE THE BIRD DOGS – as it makes good sense to leverage off their time and experience but be very carefull of deals that just seem to pop up or have garage conversions and sleep outs included in the rental assesments. (Scary stuff)
.
I’m still extremely positive about real estate, investing and the NZ market. However, you have to consider all the variables in relation to a property and not just its yield.
.
It can be very tempting but paying a premium just to secure a deal will always be a mistake. Paying too much is paying too much. There’s no point settling for or being excited about a 10% yield when the market yield is 12 or 13%. Or, on the other side of things, expecting a 13% yield when the market is telling you 8.5 or 9%.
.
CheersHi Chris,
Check out my recent post re the budget annoucements this week. Plans have been announced for a very limited NZ FHOG linked to compulsory savings. Different to the OZ version. The grant is limited and buyers wont be able to get their hands on the cash until 2010, however, as with all gov’t intervention there will be an effect on the market.
.
Not sure what that short term effect will be though!This is a hard one JD. Not sure what you should do but here goes.
.
The repayments you have on this property are what you would have expected when you got into the deal. ie you knew there was a shortfall. There is nothing wrong with that particular strategy.
.
In this case the capital gain has not materialised which has you worried.
.
Considering the huge entry and exit costs of getting into a property i think you might do well to hang onto the property for the medium term.
.
Selling a dog property can be a good idea but if you are going to take a complete bath on it that’s a different story.
.
Is this property holding you back in terms of your overall servicability? Do you have any others in your portfolio? PPOR ?
.
There is alot to consider. You also need to think about what you would do as an alternative. would you stay out of hte market altogether of find another investment?
.
Cheers.Hi,
You can also get lucky. I hardly ever initiate conversations about investing around friends or family. However, I am very lucky to have family and friends that are very interested and have also invested so it makes it easier.
.
You get better at picking the naysayers over time and learn to give them a wide berth!
.
Good Luck.
.Good point CD. The IRD treats undistributed trust income much more favourably than in oz. So in theory if you have truely cash positive properties you can leave the excess income within the structure without making distributions to the beneficiaries at home in OZ or wherever. The OZ tax office will smash undistributed trust income earned by aussie trusts encouraging distributions.
.
Good LuckTrue! However, seems like a step in the right direction for encouraging national savings. The buzz is that probably only around 1/3 or 1/4 of NZ tax payers would be inclined to join the scheme.
.
The rest could either do better on their own or plan to do better and never get around to it.
.
I was just reading that the scheme gives you access to your own funds as well as the free $5000 when you go to buy your first home.
.
From what I remember of the Aussie FHOG the govt just threw cash at people without requiring them to do anything in return.
.
Not that I would have complained if I was eligible for the cash back then.
.
Good Luck!you are on the right track with the basic reno’s at this stage of the game.
.
If your goal is to on sell this property there is an argument for leaving the kitchem and bathroom reno until the very end so that the new purchaser gets the full benefit.
.
Don’t forget there are fixed rate products out there that let you redraw your additional repayments. This will let you keep control of your cashflow (repayments) as your portfolio expands.
.
Good luck.
.
