If NZ was to introduce a capital gains tax they would probably do as Australia did (in 1975 I think) and make it applicable to all property purchased after the law was enacted. They would be unlikely to make it retrospective, and the logistics of getting every property valued at the time of introduction means this could not happen. So, the more…[Read more]

John & Paula,
You will be lucky if anyone out there can tell you what the future holds. Most of the crystal balls were wired up for the last millenium and don’t seem to function correctly any more.
That said, all the information I’m hearing across the ditch (NZ) is that the heat has gone out of the Australian market. This does not mean there are…[Read more]

Don’t turn up in the Rolls if you’re about to play hard-ball with a low offer.

I might have missed something, Milzy, but I thought this thread was supposed to be helping to solve a problem for DNL.
If you have your own question why don’t you post it as your own question rather than tag it on the bottom of someone elses? You might get more help.
It seems like there are people toying with getting into commercial property…[Read more]

I wouldn’t call those book reviews!!! At best you could call them a summary of contents, at worst: advertorial.
A good book review should highlight the strengths and weaknesses of the product so readers can make an infomed decision on whether to buy or borrow it.
Mind you Money Magazine didn’t offer the full review – you were asked to buy the…[Read more]

I realise that the majority of readers to this site will be Australian, but for any kiwi readers out there the structure for buying properties can be quite different, due to different rules with regard to Capital Gains Tax.

Buying commercial property is not the same as residential. Whereas generally any house will let if the price is right the same does not necessarily apply to commercial.
As with any investment look at your downside risk first – that is what would be your likelyhood of tenanting the property should the current tenant walk in one year? If you…[Read more]

The starting line you have passed by taking the first step with your financial education. Keep it up. You will surprise yourselves at how much you can achieve if you apply yourselves.
Perhaps a good thing to do would be to determine exactly where you are now (financially) and where you would like to be in, say, ten years time. Don’t be too…[Read more]

Surely SonnyJim requires $1m pa nett after all expenses and taxes – which is only $20k per week!!! A person’s gotta live!!! Some of those Sydney restaurants are pretty expensive, you know.
Julian

Like I said I am very much looking forward to reading the book, (copy ordered) which I imagine is very inspiring. I understand the title is about controlling $1m worth of property – and presumably all properties in the book offer positive cash-flow, which is no bad thing.

And I take Lucifer_au’s point that nett worth can vary considerably…[Read more]

Dunedin is a university town and if you are renting to the scarfies you don’t have to worry about colour schemes or other nonesense. Take all the doors and windows out before you rent it, and kick some holes in the walls first to make them feel comfortable. Power is only needed to keep the beer fridge going so you might as well take the stove…[Read more]

I agree that commercial property offers fewer headaches, but there is a whole new world of learning. And banks require higher deposits.

Purchasing a commercial property with a substantial multi-national tenant is perceived as rock-solid. However dealing with multi-nationals or even big national companies can have it’s downside. They employ…[Read more]

Obviously it all depends on the terms and conditions. First step is to find out exactly what they are offering, what they want, and what they are prepared to pay for this. Check out the downside risk as much as possible and find out if there are ways to negate this ie insurance, long lease, buy out if property sold etc etc. Do your due…[Read more]

Not sure about the points, but I know someone who maxed out two cards ($10k limit on each) and withdrew the cash for a house deposit. He actually paid his deposit in folding stuff. It probably wouldn’t work for most due to the high cost of credit on the cards but he made it work for himself until he could re-finance at bank rates. This guy…[Read more]

Being a real estate salesperson may not help your investing skills as such, but you will potentially become a proficient lier …oops, I mean negotiator.
Julian2

I look forward to reading the book, and realise that having $1m of property in one’s portfolio could be a significant milestone …but is it necessarily? If there is a coresponding $1m of debt the net worth to the individual is less than zero – thanks to duties and costs.
In the mathmatical game of investing surely there are only two items of…[Read more]

As my father used to say, “Nothin’ wrong with kids – it just depends how they are cooked!”
Seriously though, has anyone stopped to consider how ridiulous it is to have healthy, intelligent, experienced individuals stop working at a pre-determined age. Wouldn’t it be great if they could reduce their hours gradually if they so desired, and keep…[Read more]

Cap rates vary with supply and demand. Two years ago I was buying good commercial/retail properties @ 10+% cap, but those same properties would sell @ around 8-8.5% cap. High demand properties with lots of upside (ie beachside locations) can sell for below 5% cap, but these appeal to developers and speculators more than investors. This is for…[Read more]

Don’t forget taxes and stamp duties (if you have them) will have to be taken into account, not to mention sales agents and lawyers costs.
Julian2

Hi,
It must be remembered that there are four partners in Steve McKnight’s business unit – his business partner and two wives.
This ability to pull together as a team, and work to a common goal is not emphasised enough, but I believe is one of the keys to achieving the meteoric growth they did. It works out to 32.5 properties per person, or just…[Read more]