Aussiemike,

Originally posted by aussiemike:
Discretionary trusts for property investment are mainly desgined for positively geared properties not negatively geared ones.

So what’s the best vehicle for negatively geared property? Would that be unit or hybrid trusts?

Wayne

PMJI, but I also have a question regarding costs in NZ.

What’s the situation with buying and renting property in relation to GST?

Looking on property Websites, I’ve seen some prices stated as $X plus GST, while most just have the price. Is there GST on all house sales or only on some, and why would some be advertised as “plus GST”?

Likewise…[Read more]

Mel,

I would have thought that the company lending money to the trust is different to lending to a director though
I don’t know, but hopefully my accountant will tell me.

And I suppose I could nip over to somersoft.com and ask Dale.

Wayne

Mel,

Thanks for the response.

I’ve read Dale’s book now, plus a number of others and heaps of threads on this and other forums, and have a much better overview of the situation.

is there any way that you could loan the money to a trust that you set up?
From the company you mean? That’s exactly what I’ve asked my accountant. However, I know the…[Read more]

Right now, everything I can find on property investing.

For fiction, Gene Wolfe’s “Fifth Head of Cerberus”. He’s a great writer, if you like SF/F and don’t mind thinking a bit.

Myydral – I read a lot of Michener some years ago. My favourites would be The Source, The Covenant, Chesapeake, and Centennial, but a lot of them were pretty good.

GP

Derek,

As I said, he flew through the figures so fast that it wasn’t really possible to try and work out exactly what he was doing, but I think it was much like you said.

The idea was though that you’d realise that return through refinancing at the higher capital value (meaning you’d borrow another $8K against the $10K increase in value). While…[Read more]

I did notice in Steve’s book that he got motivated by going to a seminar [singer]

Even if it was by Robert Kiyosaki.

aussiemike,

Ah yes, sorry, I must have overlooked that part of your message.

GP

aussiemike,

>> If you are bankrupted, the trustee in bankruptcy could take control of the corporate trustee and distribute income or capital to you as a bankruptee <<

But wouldn’t the appointer be able to sack the trustee company before that could happen?

GP

Thanks for the replies.

So you would consider Housing NZ to be a good tenant? Not difficult to deal with?

Would a lease be much the same as a normal tenancy in regard to the obligations of the owner (maintenance, etc)?

GP

Terry,

Thanks for the response.

Unfortunately in this case I’m on the top marginal rate, so there’s a difference of 18.5% which adds up to a fair sum. And I already give the taxman more than he deserves…

Anyway, I’m going to talk to my accountant about it again shortly.

Wayne

Thanks for the reply xxx and the link to the other thread.

$1000 to join now – the price seems to be going down.

The figures he mentioned sounded good, but I’d want to go through them slowly and in detail, checking out all the assumptions and claims, before committing to anything. All the emphasis he kept placing on 100% return per year and no…[Read more]

Lucifer,

Thanks for the response.

Since writing that post I’ve looked more through this site, and the Gatherum-Goss one, and noticed that trusts seem to be the preferred structure (presumably discretionary rather than unit trusts).

I’ve ordered the Trust Magic book, but am just wondering why a trust is that much better than an individual,…[Read more]

Thanks for the welcome Henry.

At this stage I’m just starting to learn about investment property, so am struggling even to come up with ideas for myself.

Wayne

Thanks Hux001 and Derek for your quick replies.

Regarding Investors Forum, the seminar only glossed over the situation but a few things bothered me. Firstly, the amount of depreciation on the fittings sounded good, but there was no mention of the cost of maintaining and replacing those fittings as required. ISTM that depreciation and cost of…[Read more]