hmm in that case it makes sense to pay as little rent as possible, don’t it ? i.e. at the lowest end of the market price. This way your maximise your loss and thus tax benefit.

319 yes please that would be good to get the details.

thanks
007

surely you would raise capital through eachs members own equity ? otherwise webecome more fund managers than partners

Tas re; converting your PPOR to IP through a trust and renting it yourself.

More intriguing with each post indeed.

What if you fail to pay the rent ? could you get kicked out ? hehe ! would you loose your bond if you trashed the place ?

More seriously, what about insurance claims on accidental damage ? I guess that would be the same as a…[Read more]

Gav I expect a buyers advocate could no more insulate your property selection from risk, than you studying the property sites and forums for 3 months before you dive in.

Just be sure to get an independant property professional valuation once you have done your homework and have your mind set on a property.

I used Bristow & Associates in…[Read more]

Wayne thanks. I don’t get the publication. I may talk further with about this at some stage. I am a newbie and have my hands full at present. Just settled on my secondd IP today. I may do one more unit buy before I start looking at land.

I am considering finding a partnering project with someone through acquisition of a block on land.…[Read more]

Steve Thanks ! That was on my mind !

Now another question. Do you or does anyone know of a good developer of Units or Town Houses on a very small scale. Say two at a time ? I had a look on the net but only found one or two possibles.

thanx

I just spoke to a real estate agent who valued my PPOR and he also suggested I rent it to myself. When I said through a trust you mean ? he said yes thats right.

So now I’m getting curious and have some questions as follows;

1. Is this just a tax dodge or something ?

2. How expensive is it to set up your PPOR as a trust and rent it from…[Read more]

How far out of brisbane does one have to go to get a positive cashflow property ? and where would you suggest looking ?

thanx

Hmm property value / 10 to get rent ? hope this is not the only measure of cash + but granted you did mention I think for properties under $100K

Imagine a $300K property / 10 = $30,000 in rent, yipeeeeeeeeee !!

I thought you only paid CG tax on the period in which your property was an investment property. i.e. if it was previously PPOR then that period of growth is exempt.

hey love that story about the two mates !

Sounds like an interesting concept that could be developed further, this “Renters Equity Share” thing. Hey this could be the next big wave in property investment, enabling cash positive brand new investments. hehe ! [8D]

Say at the end of the tenants lease, the property is revalued based on average property growth rates for that area. The…[Read more]

Capital Growth, cost of owership, return on investment, tax benefits and more

where is the best area to invest in NZ ?

Tasman

“Last but not least, in order to move your assets into a new family trust it will trigger a capital gains tax event (as the trust is the new owner, you effectively sell your property to the trust). This can cost you in terms of stamp duty, and if you have owned the asset you want to add in to the trust for a while and there is a large…[Read more]

” I believe you should use outstanding debt rather than property value, as that gives a more accurate result. Others may disagree. ”

What if the outstanding debt is $10,000 ?

I mean anyone can pull simple formulas out of thin air. I just thought of one with 10 seconds.
Try dividing the property value by 1000 then multiplying by 2 that give…[Read more]

if you live with your defacto in a defacto relationship, then I suspect she would loose her tenant status and you would loose your landlord status. But seek tax departments opinion and I suspect they would say its a tax dodge.

Now on this trust issue what is the point of this type of trust ? Seems to me its just a way to aviod tax.

What is…[Read more]

Hmm I think we should try to focus on property and related matters and not political or social commentary here. I probably should have confined the subject heading to property and stocks, but one cant aviod matters of global stability and its influence on such markets. That said, please try to stay on topic, to aviod branching down a new…[Read more]

Hi David,

“Put all your eggs in one basket… and watch that basket carefully” Warren Buffet

” Hmm, I couldn’t bear to watch myself sinking in quicksand. I would prefer it be a small pot hole, on my way to the oasis.” HWD007 []

Regina that’s a great idea checking body corp minutes.

max sounds like its costing you money. I would sell it if I can’t get $270 min, if you can cover your holding costs for the life of the asset, with capital growth after CG tax. I would then reinvest in more conventional residential units, flats, townhouses, small developments etc.. that I expect may offer better capital growth. The high rise…[Read more]