Hi Mel, fair comment.

I suppose there’s nothing wrong with making the Hamburgers but calling them NacDonalds might be crossing the line. Where is the line drawn?

My view is that if you stifle concepts and teachings in general by allowing people to say “patent” them then we might not get taught anything through fear of litigation.

Anyway, I…[Read more]

Hi Bindi,
The article you’re referring to in the NZ Herald was by Simpson-Grierson, a well known law firm in NZ.

The issue of “intent” when purchasing investments is to determine whether or not a person can be deemed a “trader” in those investments. ie if the sole purpose for purchasing a property was to on-sell it the next day then you would be…[Read more]

Has anyone heard of OPS?
Objectives, Planning, Strategies.

You set your objective, you devise plans to achieve those objectives and implement strategies to follow the plan. Your results can be measured against your objectives to see if your sticking to your plan.

The concept gets expanded much further than this but was taught to me in the early…[Read more]

“If you enjoy what you do, you never have to work a day in your life”

Property to me is financial freedom – I can do pretty much what I like, when I like.

Kids, who mentioned kids – better rephrase that aforementiond comment. I can do pretty much what I like when the kids let me.

I fish and scuba dive, play squash, dine out regularly with the…[Read more]

Thanks for that Derek. I’d heard about the case last year and was wondering what the outcome was.

I know the NZ Inland Revenue Dept is keeping a close eye on this. Now I’ll be able to check for myself.

Cheers
Jeff

Hi there,

Four times in four consecutive years in NZ. Tax audits are bigger timewasters than the kids.

I needed to provide all my tax invoices, depreciation schedules, and cashbooks. They even came out and inspected my vehicle (which of course I use for locating property etc.)

The best part about them was that in the last two audits they…[Read more]

Isn’t this a pyramid scheme?

I’d hardly call it an investment. It seems as though you have something to achieve from this post so I’d class it as SPAM.

Go earn yourself an honest dollar

Jeff

Look in http://www.dolfderoos.com

Cheers
Jeff

Originally posted by SteveMcKnight:

One person’s garage is another person’s carport

One person’s garage could be another person’s home!!

I’ve seen granny flat conversions, sleep outs and just 4th bedrooms.

Cheers
Jeff

Hi Westan,

5% ground rental in Napier – Wow. Have you seen Rotorua – 8% of land value on a High School Board lease (21 year perpetual lease, 7 yearly reviews).

And the ground might still bubble up underneath you

Regards
Jeff

Calvin,

You’ve described the use of CoCR perfectly

“as a comparison tool to see if I can get more money elsewhere”

What Michael is saying is that if the money is borrowed, no matter where it comes from, then it should not be used as CASH in the CoCR formula – while this is technically correct I feel it can be dangerous as I have already pointed…[Read more]

Michael, you and I obviously both have an understanding of “Other People’s Money”, finance and property in general. Perhaps however, you just need to come back a couple of levels and look at things from a novice investors point of view where the existing equity is limited and traditional lending criteria applies.

Our contradictions appear to…[Read more]

Hi Sally,
The CoCR percentage is not that applicable when you are borrowing so much. At the end of the day you need to have a +ve cashflow and need to know it will remain +ve for as long as possible.

An infinite CoCR, which is what you are doing is not that great if you only make $1 per annum, is it?

Steve’s 11 second rule should only be treated…[Read more]

Hi Smithy,
I’m not too sure on whether or not you can register your trust in NZ as well but to resolve your problem you can either:
– Set up an account in your own name
– Form a Limited Liability Company for about $300 and have the shares of that company owned by your Australian Trust.
– Set up a NZ Trust

If you buy property in your own name you…[Read more]

Sorry Michael – my understanding of “draw down” is from a loan and not a draw down of cash.

First and foremost Bashiba needs to know how to value a property deal. Keep it simple. If you don’t, an increase of 1% in interest could turn an infinite CoCR to a -ve CF. Refer to my example 1 and change the interest rate from 7% to 8% and see what…[Read more]

Hi guys,

I guess after many painstaking years in the work force I am now classed as a Ticker.

Each week I download my bank statements onto the computer and tick that the rent has gone in and the mortgage gone out.

If there’s any left over at the end of the week I split it betwenn the stockbrokers and the government.

Cheers all
Jeff

Congratulations investron, I’m intrigued by your success. You must have started investing at a very young age.

I’ve tried to use a strategy of three +ve CF’s to
one -ve CF IP just to keep a balanced portfolio.

The positive offsets the negative cash flow and I can still take advantage of the capital gain.

Also I try to balance my cashflows so…[Read more]

Michael R

You seem to have misunderstood my point. I said that ]”For the sake of determining whether or not a property is a good deal or not, treat the 20% drawdown as a cash deposit when doing your calculations.You are limited to how much equity you can draw down from other properties and the theory is that each deal should stand on its own two…[Read more]

Hi Sparkie,
If you have debts to that extent you should endeavour to pay them. If you can’t manage the past debts how can anyone expect you to be able to manage future debt.

Best solution is to make an arrangement with your creditors to pay off your debts over a period of time. And if you make an agreement, stick to it.

Regards
Jeff

Pisces
Your question on “chain set up”, it is where people entered into contracts to purchase subject to them selling their own property first.

I’ve seen instances where there have been upto 4 contracts in place. None of the properties can actually sell until the last one in line settles. Sometimes they end up in a conditional agreement as…[Read more]