Forum Replies Created
- 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 denominator with most whether it be through education, mentors or whatever. Being focused on your goals without being sidetracked is extremely important and the craving for knowledge equally important.
Apply the concepts of other peoples money (OPR) and/or other peoples labour (OPL) and your wealth will escalate like a parabolic curve.
Cheers
JeffHi 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 becoming a State Highway. The trip between the 2 towns will probably be between 30 – 40 minutes.
Another town close to Tauranga and definitely worth a look is Te Puke.
Cheers
JeffMany 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
LeonThanks 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 to set a target then you must have a time constraint on it eg 5 years, 10 years.
I just like to add another zero onto my annual income every 10 years.
Cheers
JeffHi 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 out at a higher rate also gives you this percentage over and above the cost of labour.
With these two scenarios you are only limited by how much you can borrow or how many people you can employ.
With this in mind you can now look to be creative
Good luck
Jeff
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
JeffHey 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 site
http://www.genesisenergy.co.nz/genesis/generation/thermal-info/thermal-info_home.cfm
That should generate a few more jobs.
And as far as the by pass is concerned try calling into Pokeno just south of Auckland next time you pass through. It was bypassed and managed to survive. For a while they changed the towns name to jenniferann.com and now the town is known all over the world. Best bacon in the country too.
Hope this helps.
Cheers
JeffAt 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 guide you through the pitfalls of an investment gone wrong. How you manage the problems will determine your future success as an investor.
Having said all this, go mortgage yourself upto the eyeballs. If everything turns to custard you can always try “exploring new foreign markets”
Happy investing
Jeff
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 liability.
Now, if you were to take a loan from your NZ Trust as a beneficiary, would this be deemed taxable income in Australia?
Many of these threads on Trusts and structures for investing seem to be missing the point. Every individuals situation is different so instead of putting the cart before the horse it would be best to plan your overall investment strategy and then adopt the appropriate structure.
Think twice, act once.
Cheers
JeffHi 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
JeffGardner 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 stepping stone to commercial property investment. While there can be higher risk, the options and profits can be huge
Cheers
JeffHow 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
JeffJust 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 heating
Cheers
JeffGo 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
JeffYou 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 the year they occur. If reverting back to a closely held company, losses can be accumulated and carried forward to be offset at a later date.
If your company produces income, the company is taxed. The shareholder is only taxed on the dividends and income passed on to it from the company. Hence being a non resident shareholder you would be taxed NZ non resident withholding tax on your dividends and then taxed in Australia. But this is only on the dividends paid to you not on the whole lot.
Remember that a company must have a resident director. So why don’t you just keep the company and convert from LAQC
There are a number of Australian Accountants on this forum, I suggest you contact one of them. Your information doesn’t appear to be correct.
Cheers
Jeff“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 return on your own money and secondly you don’t want to be left with a debt that cannot be serviced by the rent.
Trying to guess a rate of capital gain is a bit like crystal ball gazing.Population growth in any town is an important denominator on both rental growth and capital gains. It should be a factor in researching locations to invest in. Having determined those locations you can then apply the rules.
As suggested earlier, you would need to do some research on the mines to see how long they will be around
Cheers
JeffHi 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 do your homework to see if it is a good buy.
Cheers
JeffHi 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 positive.
Sounds like you need to build time constraints into you calculations. You can also check out the expected lifespan of the particular mine which may help.
Cheers
JeffReally 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
JeffSo 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 buy new or do they buy second hand?
One of the major global property investment companies is applying the strategy that higher interest rates will create occupancy demand for existing buildings. I personally have experienced similar in the past.
While not a foregone conclusion, price elasticity of demand cannot be overlooked.
Any other views?
Cheers
JeffA caveat is used to register an interest in the property. You need to speak to a solicitor
Cheers
Jeff
