Please only answer this question if you have over 1 million in assets or more.

Kristine, you loaded your question to sort out the millionaires.

“If you want to be a millionaire then ask a millionaire” –

What better person to ask than someone who has already done it. I guess you’re already on the right track.

It appears inspiration is a common…[Read more]

Hi guys,

Tauranga is a great place. Still one of the fastest growing areas in NZ. I moved here to be closer to all the property action and while I’ve done a couple of deals here Muppet is right, there are still many +ve cash flow properties in Rotorua.

They are presently upgrading the back road from Tauranga to Rotorua with the intention of it…[Read more]

Many years ago, my goal was to have a nett asset of $1m. Today, my ultimate goal to be able to give away $1m!
Achieving it will make me a very happy.
Regards
Leon

Thanks Leon I’ll send you my bank account details so you can fulfill your ultimate goal.

As far as wealth and goal setting goes they change when ever each goal is achieved. If you are…[Read more]

Hi Geo,
Apart from luck there are only two ways you can generate money in excess of your physical ability.
They are:
1. OPM – other people’s money
2. OPL – other people’s labour
Investing in property by leveraging allows you to take a percentge over and above the borrowed money, not unlike the banks.

Employing staff at an hourly rate and charging…[Read more]

Hi Geoff
Cash on cash return is a not necessarily a good tool to use. If an investment costs you $1 of your own money and you make $10 at the end of the year after all expenses then you COCR is 1000% At the end of the day you have only made $10.

I prefer to count the dollars rather than calculate the percentages.

Cheers
Jeff

Hey Pursefattener

They must be talking about that Huntly Power Station again. The power station is actually operational but not the flashest. Anyway Genesis Energy is planning the development of a high efficiency combined cycle gas turbine power plant to be built on the exisiting Huntly…[Read more]

At 18 years old you don’t need to be tied to a mortgage if the property is not self financing.

At your age you have everything to gain but I suggest you spend as much time and effort as possible on educating yourself on property and other investments.

There are many books out there that tell you how to get rich from property but few of them can…[Read more]

Hi XXX
Just remember a NZ Trust is an entirely separate entity which is taxed in it’s own right. Only distributions to yourself will be subject to Aus tax and that is only if you make those distributions.

You may also find you have considerable tax deductible losses over the years which you may accumulate. This in effect defers your future tax…[Read more]

Hi Rags2Riches,
Go and check out you local boat dealer. They’ll have all the info and products on fibreglass.

I use Grunt’s on my boat and it does a good job of getting the scratches and oxidation out and gives it a good shine. If that doesn’t work you can get a type of fibreglass paint.

Good luck
Jeff

Gardner and Lang have been around for a while although I personally have not had dealings with them.

Try reading a book titled “How investing in Commercial Property really works” by Martin Roth and Chris Lang.

Furthermore the majority of fulltime property investors will prefer commercial to residential for investing. Residential is generally a…[Read more]

How do you tell a bad company from a good one?

What are you talking about Trisha. Are you looking to invest in the NZ Sharemarket?

Or are you asking about investment structures for purchasing property in NZ?

Cheers
Jeff

Just a suggestion but have a look at solar heating. A friend has just put in some solar evacuated tubes for his underfloor heating.

There are also solar space heaters or breadbox heaters which are inexpensive to build and while they won’t fully heat the house they go a long way to reducing the amount of heating required.

Do a search on solar…[Read more]

Go to the members section and try contacting Julia on this foum. She has provided some pretty informative answers in the past regarding Australian Tax issues.

Worth a try anyway.

Cheers
Jeff

You must realise that a company is a separate entity in its own right and is taxed accordingly

Apparently I have to pay 10% RWT on the interest I pay to NZ banks to the AOT!.

This sounds a bit unusual. You pay tax and RWT on income not expenses.

An LAQC works if you have other personal income and you can offset losses but this must be done in…[Read more]

“The combination of +CF and any capital gains or losses until you exit your investment must be positive.”

How positive is positive? I guess what i’m really asking is what kind of hurdle rate (%) +CF investors use to evluate a worthwhile investment (8%? 10%?).

Teeks, this would depend on how much you put in yourself. Firstly you want a good…[Read more]

Hi Darrin,

This rule is a “rule of thumb” to help you filter the properties you look at and determine what is worth a second look.

As interest rates rise the rule becomes less effective but it is a quick formula to use and a lot quicker than 11 seconds. There is no magic in the rate of 10.4%

If your property passes this test you still have to…[Read more]

Hi Teeks,
Nothing wrong with just +CF properties but that is what they have to be. If you are concerned that the life of the positive cashflow is too short and that you may even take a hit when selling then it’s probably not that positive.

The combination of +CF and any capital gains or losses until you exit your investment must be…[Read more]

Really Derek,

Everyone knows if you want proper tax advice you have to ask a plumber, builder, neighbour or the checkout operator at the supermarket.

Excuse my sarcasm but I suppose it depends on what they term “limited” advice

Cheers
Jeff

So what about from a Commercial Property point of view. Can we see more demand for second and third tier properties as the demand for nice new office blocks and retail shops slows.

As construction costs rise so do occupancy costs (breakeven rents & opex). Do businesses control their overheads while still attempting to grow? Do they continue to…[Read more]

A caveat is used to register an interest in the property. You need to speak to a solicitor

Cheers
Jeff