Forum Replies Created
- Originally posted by aussiemike:
This strategy will only work if you generate income through a company.
What do you mean by “this strategy”?
The example Rob gave with the $71k giving an average tax of 30% is true for all taxpayers no matter where their income comes from. I don’t see what companies have to do with it at all.
The only advantage is if the total income is greater than $71k (and not capital gain), as the extra money can then accumulate in the company. However, as you pointed out, it’s then not easy to get it out later without paying extra tax.
I have been wrestling with this problem for a while now, and am finding having cash stuck in a company is a bit of a trap.
GP
Originally posted by MiniMogul:We don’t actually buy properties on anyone’s behalf. We put a contract on the properties in our own name, and if someone wants to buy the property, they pay us to take the contract on.
I’m interested to know a little more about how this bird doggin’ works.
Do you take on contracts specifically to match client requests, or do you just take on whatever you think is good and then try and find people interested in taking them over?
What if no one wants to take one on? Does that mean you end up having to take it yourself?
And what sort of fees are typically charged for this service? Are they based on the price of the property, the amount of leg-work that went into obtaining it, or a flat fee?
Just curious as a potential client.
GP
When I enquired about the NAB pro package a few years ago, it was 0.5% lower interest rate and had no establishment fee, but it did have quite a high monthly fee (can’t remember what it was now).
But as I didn’t proceed with the loan, I didn’t bother to figure out how much difference it made relative to their other loans.
GP
Originally posted by Geronimo:
And don’t you find it funny that you need the biggest room in the house for the home office?There was an article in Sunday’s Telegraph (which I can’t find a link to) about how the tax office is about to focus on investment property and home office deductions, amongst other things.
So it may be worthwhile ensuring that any such claims are valid and can be supported. The article indicated that they would particularly be looking at capital expenses (improvements) claimed as deductions and home office claims for non-deductible costs.
GP
While not quite an investor yet, I rented for something like 20 years in more places than I can remember.
One of the best was a house I shared in Christchurch where the landlord lived just over the back fence. They had a large vegetable garden and would often throw veges over the fence for us in season. [chef]
One of the worst was a house I shared in Christchurch where the landlord lived just over the back fence (yes, same one). We had to go round there every week to pay the rent and they had these two HUGE dogs that weren’t particularly friendly. [evil3]
GP
Originally posted by MortgageHunter:University is full of beautiful smart girls…
And lots of them – provided you don’t study engineering! [grad]
GP
ex-engineering studentOriginally posted by breakfree:if some one sues the trustee, will the assets in trust still be protected.
From my understanding, in that situation the appointer can sack the trustee and appoint another one.
But I believe there are situations where the directors of the trustee company may also be liable, in which case you wouldn’t want them as shareholders of the new trustee company.
This is just based on what I’ve read, so get advice from a good lawyer to be sure.
GP
Originally posted by NZ Mortgage Broker:Yes it will depend on location and value but also the strength of you own financial position in relation to assets and income.
Will a NZ lender take into consideration Australian assets (primarily PPoR) when considering a loan application, or only NZ assets?
GP
Andrew,
As someone who has just recently been studying this same issue…
Dale Gatherum-Goss has a couple of good books on trusts and tax issues called “Trust Magic” and “Tax Battles”. You can order them by sending an email from his Website:
They’re cheaper if you buy both at the same time.
Chris Batten also has some useful information on his Website, but you have to subscribe to be able to download most of it.
The basic idea though is that trusts are more flexible and provide better asset protection.
Plus beneficiaries can still use the 50% CGT rule, so even someone on the top marginal rate is only paying about 24% CGT. Companies pay 30%, after which it’s still company money, not yours.
GP
Sebastian,
If you want to ask Dale, nip over to the Somersoft forums and post a message in the Accounting and Tax or Legal Issues section.
http://www.somersoft.com/forums
GP
Lisa Dudson & Andrew King’s book “The Complete Guide to Residential Property Investment in New Zealand” has quite a good overview.
http://www.goodreturns.co.nz/books/product_info.php?products_id=146
GP
George,
Thanks for the info.
I assume you’ve been communicating with oneNot at this stage. I guess I’ll probably look for a mortgage broker in NZ when I’m ready, but right now I’m just gathering info.
I can refer you to my lender in NZA broker?
What part of the country is he in?
Cheers,
GPOriginally posted by CastleDreamer:there are no termites in NZ
Really?
No termites, no poisonous snakes, only one poisonous spider…
Where’s their sense of adventure? [biggrin]
(oh that’s right – sandflies)
GP
While I can imagine it being motivational, would I likely learn anything that I can’t read in his books?
GP
Originally posted by muppet:Anyway most of the piles are now made of concrete
Yes, well, my comment wasn’t really about those sorts of piles [evilgrin]
However, I don’t know that concrete piles by themselves would stop termites. Most I’ve seen here are brick and they still need ant caps on them.
Certainly better than timber though.
GP
Steven,
Thanks for the reply.
Looks like borrowing in NZ is going to be the way to go.
Although that does raise the question of what happens if they want security beyond the IP itself (I assume that a NZ lender would not accept my Australian PPoR as security either) and, for overall -ve cash flow, whether they’d see servicibility problems with me not earning income in NZ – only in Australia.
GP
Nick,
Thanks for the response.
Wayne
I mostly do programming these days, primarily real-time embedded systems but also some PC stuff, interspersed with moments of electronics.
GP
the houses are held up by piles!!!And we all know what a pain in the butt piles can be…
Muppet,
Residential property and rents for same are excluded from GSTThanks for the info.
Looking back on the Website, I see the ones that indicate +GST seem to be all vacant land, some of it described as rural with grazing, so I guess that’s classed as commercial.
GP
