First Right of Refusal differs from lease to lease. Some clauses simply state the property has to be offered to you first.

The more common clause is the property must be offered to you at whatever price someone else is prepared to pay. In other words, it cannot be sold for less than the amount offered to you for.

Check the clause in your…[Read more]

Hi Damo

I’m getting a little confused here. You want to quit your job and you need to derive enough income to survive.

You want to renovate your PPOR and onsell for a capital gain and then purchase another one.

You will only do it 2 or 3 times so you don’t have to pay CGT.

What’s the difference between paying tax on profits from trading…[Read more]

I think most Newbies are welcome here regardless of age and experience. The whole concept is to exchange ideas, draw from others knowledge and learn from the experience.

I do however, see what resiwealth is on about when you see topics like this posted.

https://www.propertyinvesting.com/forum/topic/17306.html

Cheers
Jeff

Martin

Try using the Insert/Function properties in your Excel spreadsheet for NPV and IRR formulae.

Cheers
Jeff

Hi Martin,
Just looked at your spreadsheet and a couple of things stood out. The rental rate per square metre would probably rise to at least $180 per square metre on market review (First one in 2 years) My initial thoughts were $180 per sq metre was very low for CBD but this isn’t quite CBD is it? I take it that it is not a high street location…[Read more]

Out of curiosity Dazzling, are these additional verrandahs / sheds / partition walls permitted?

Perhaps a bulldozer and a new development might be less hassle and possibly more lucrative.

Cheers
Jeff

Originally posted by The Mortgage Adviser:
Jeff,

So what do you do when your returns drop off for a few years?

I now have a very strong commpercial property portfolio with longterm leases to national and international tenants and regular rent reviews. I endeavour to protect the cashflows derived from my properties.

How does your family eat and…[Read more]

Originally posted by The Mortgage Adviser:
If anyone actually had a property portfolion consistently returning 10% per annum

It is quite feasible to average over 10% per annum over a period of time however, as property cycles move in waves it cannot be consistently relied upon each year.

I would rather have one property with 80% equity than 4…[Read more]

Sorry Rob but I have heard of the strategy Terry mentions as well, and about 20 years ago (ie buy 7 properties over 7 years etc)

The theory is based on 10% per annum compounding growth which assumes a property doubles in value in 7.2 years. We all know in reality this cant happen every 7 years on a consistent basis but it is an example of how…[Read more]

Coastymike,
I’m not sure if you are aware but in NZ we are not subject to capital gains tax on property (yet) unless you are considered to be “trading” in property or a developer. The key factor here is your “intention” when you buy.

The buy and hold strategy I adopt is more of a “never sell” strategy – hence, even in Australia CGT would not…[Read more]

While I am more familiar with the NZ tax system I find the use of companies for investment enables you to defer part of your tax liablility by taking advantage of the difference in company tax and personal tax rates. A company can always pay a wage, interest or dividend to an individual(s) and stay within the minimum tax bracket.

While a company…[Read more]

Thanks for your post Redwing,

I’m in Tauranga, New Zealand – the climate is supposed to be okay for olives but would need to do some major planting to make it commercially viable. The land value here is too expensive to justify it. The big thing at the moment is Avocados but they take a lot more looking after.

We’ll get a crop this year but…[Read more]

I also remember at one flat the outside loo cracking from the pressure of the ice formed in the bowl during a particularly cold night.This was in Dundas St down near the Leith.

120 Dundas by any chance?

Jeff

Hi Martin,
Part of doing your due diligence is obtaining a copy of the lease and all variations and assignments. A lease needs to be studied and if you are unsure, ask someone who knows eg lawyer.

The lease will tell you what the lessee is responsible for and what the lessor is responsible for, rent, term, reviews if any, guarantees if any,…[Read more]

My olive trees are approx 5 years old and still growing. Have not had a useable crop yet but they don’t take much looking after. Don’t expect any early rewards from olives.

Cheers
Jeff

Lee
If you are going to own the furniture and fittings then separate them from the land and buildings. These items depreciate in real terms at a much higher rate than the buildings, while you may achieve a better tax advantage in the short term you will eventually have to replace them.

1. Price for land and buildings – return required
2.…[Read more]

Q.If the tenant goes under, what happens to the business?
A. You own a motel business as well (tenant cannot take the business down the road and leave you with a vacant building can he? The business is the building)

If you did end up with the business, what rentals could you achieve?
(ie $60000pa divided by 52 weeks divided by 22 rooms = $52.45…[Read more]

Duckster
4 percent yield??

When your yield is less than your interest costs you would be relying solely on capital gains to arrive at an X dollar figure – to me that’s specualtive.

Unfortunately a 7 percent increase in property prices is not consistently achievable year in and year out. While I appreciate you did say “average over the longer…[Read more]

Originally posted by Hound Dog:
From memory $14,000 was the going rate for something less desirable in Dundas Street and I think it was over $200 per week rent.

This sounds like the house I lived in. Inadequate heating, outside toilet and laundry, easy staggering distance to the Gardens Tavern. It was still there 2 years ago and has had little or…[Read more]

A buyers market is when the sellers outnumber the buyers.

In property this is caused by various economic factors, interest rates being one of them. Alternative investments competing for the same dollar, exchange rates in various sectors (eg import/export), industry closures and redundancies, relocations, commodity prices etc etc can all cause…[Read more]