And for NZ there’s http://www.propertytalk.co.nz

I visit that and Somersoft regularly. I think Somersoft is very good too, but it doesn’t have the +CF focus of this forum.

GP

Yack,

Until you get around to buying Dale’s book…

1. Can I still claim all the interest expenses in my tax return?
The idea is you borrow in your own name and buy income units from your hybrid trust. Since you’re borrowing for income-producing purposes (you get the net income from the rent), the interest is deductible, even if its more than…[Read more]

Originally posted by yack:
I have all properties in my name for negative gearing purposes.
You can also do that with a hybrid discretionary trust.

GP

Misty,

My understanding is that it’s what the money is borrowed for that’s important, not where it came from.

So as long as it’s used for income-producing purposes, then I believe it should be deductible.

But as always, check with a good accountant.

GP

Originally posted by robo:
NAB told me for a IO loan as follows, loan amount x days in month x interest rate divide by 36500 = monthly payment.
Well they know how to make something more difficult than it is []. Why didn’t they just say loan x interest rate divided by 1200? And what figure would they use for the number of days in a month?

IO is…[Read more]

Thanks Steven. I’ll take a look at it.

GP

Steven,

Do you know what the actual formula is for calculating repayments on P&I loans?

All these programs and Websites that provide calculators are fine, but I’d like to know the actual formula used. I’ve tried to get this off my bank in the past and the loan people can never tell me (possibly because they don’t know themselves).

I once got…[Read more]

Originally posted by Julia:
if the interest on the property exceeds the net of rent and other costs the difference is deductible in Aust. This has only been in for a few years before then it was quarantined.
That’s good to hear [].

Do you know if it matters whether the loan is from an Australian lender or a NZ lender?

And I read something about…[Read more]

Originally posted by Aceyducey:
OK – how do you then get the money OUT of the company….pay dividends…taxed! pay salaries…taxed!

Why get double taxed?

The way I see it…

You’re not being double taxed with dividends, as the company tax paid gives a franking credit. You’re only paying the extra tax that brings the company rate up to your…[Read more]

Originally posted by lifeX:
What if you had no other beneficiaries left under a 30% tax rate.
Remember though that it’s not the marginal tax rate that counts but the average tax rate. A person can earn around $70K a year before their tax payable is higher than a company’s.

If all the beneficiaries are earning much more than this though, then I…[Read more]

Originally posted by westan:
but add rising sea levels, now we are coastal.
And one billion dollars of Coromandel property is now under water [biggrin].

GP

Waz11,

This was discussed here somewhere not so long ago.

From memory, the main points were that the house owned by the trust would not be capital gains tax exempt and you cannot negatively gear the house you’re living in (ie. by using a unit or hybrid trust). Otherwise I don’t think there’s much problem with it.

But check with an accountant or…[Read more]

Originally posted by SuccessPlanner:
Is it possible to buy in the name of a Trust and still not pay CGT??
By my understanding, any capital gain will always be assessed for CGT, but how much you pay depends on who theoretically has to pay it.

With a trust you have the flexibility of distributing the gain to the beneficiary who can pay the minimum…[Read more]

YC,

why do you think the property can be sooo cheap in towns with relatively good rental?
I’d say that in many cases the return is necessary to compensate for a lack of capital gain potential and the added risk of long periods of vacancy.

I had an email yesterday from an REA in NZ offering a place for $55K currently rented at $148pw. That’s…[Read more]

Originally posted by kp:
where is all this capital growth going to come from in the immediate future ??
If it’s a long term investment, does the immediate future really matter?

As long as it has potential for the longer term (although of course this will depend on Phil’s goals).

GP

Originally posted by kp:
the Police are no help in these situations..100% failure rate in my experience.
And mine.

To rub salt into the wound, after the last time my place got broken into (before I had an alarm system and window bars), the police came and dusted everywhere for fingerprints – which means I had an awful mess of black powder to…[Read more]

Wow, I worked through that one yonks ago as a kid. Except then it was called “Who owns the zebra” and the cigarettes were Parliaments, Chesterfields, etc.

Ah… here’s the one I remember:

http://www.psc.edu/~burkardt/puzzles/zebra_puzzle.html

GP

Scullyman,

I’m not a legal or financial person either, but I would imagine that would be worse. The promissory note might be considered as income to the vendor (assuming they declared it), so they’d miss out on the 50% CGT discount they might otherwise be entitled to.

Also, the fact that you’re trying to help the vendor save on CGT indicates…[Read more]

Lisa,

I don’t know anything about them, but if you use the forum search feature and search for “investors club”, you’ll bring up a number of older threads about them.

Cheers,
GP

Originally posted by pleong:
4×2

1 x lounge
1 kitchen & dinning
1 x master
3 x other rooms (extra)

So that’s six? What’s the 4×2 mean?

each sensor cost $80
I haven’t bought any for quite a while, but I think at that price they should be reasonable quality.

As I mentioned though, I wouldn’t bother with so many myself, especially not at $80…[Read more]