Happybandit, unless you start purchasing positively geared properties your buying power will quickly fall away.
On the other hand properties that are NOT dependent on capital gain to add to your wealth stream will go on putting food on your table and wine in your belly day in, day out.
Pulling equity out of properties to totally fund more…[Read more]

I work out a yeild of 10.83% based on rent of $6,500pa and purchase price of $60,000. Your cashflow will depend on the interest rate, loan duration etc. Hopefully the property has a secure lease in place, is located well, and the current rent is at or below the market rate. Also it would be good if the rent reviews are annual or at least…[Read more]

If you purchase your own lear jet the travelling isn’t half the ordeal it usually is. Having said that, for national purchasing excursions it’s often nice to get about the slow way, and for that I recommend the Ferrari 550 Maranello or the Porsche 959.
Cheers, Julian.

I’ve been to a couple of their seminars, and lets just say I haven’t been thoroughly impressed, nor have I bought any property through them. If you like lots of ra ra ra and have some money to burn you might enjoy their seminars. As for the deals, they certainly claim to have organised a lot of purchases here in NZ so some people must like what…[Read more]

Ken, you’re doing better with your English than a good many for whom it is a first language. As for area knowledge, I think you would probably be surprised how many “locals” aren’t too familiar with their own country. Let’s face it Australia is a huge place. Keep working away at it – you will surprise yourself!
Best of luck, Julian.

Crocodile, wanna reduce your expenses from around 3% to almost zero %??? Sell your residential props and buy commercial. Your lovely tenant will not only pay all your expenses, but they have a vested interest in keeping the place looking great as well!!!! The only downside for well located commercial/industrial properties is the fact the banks…[Read more]

There’s the simple test: Has it made you wealthier and is this likely to continue? If not sell it. If yes evaluate if the return overall is satisfactory, and only keep it if it is. Good luck, Julian.

Michael R
Despite Australia’s convict heritage they are usually very welcome as potential NZ citizens, and that might be one way of avoiding paying capital gains tax when returning to Australia. It would be a big step to take, but as NZ and Australia have fairly open reciprical rights for its peoples working and living in each other’s country,…[Read more]

CheekyOldBatt, Whaddayamean a shortage of available land around Alice. Hells bells, there’s land for about 2,000 miles in any direction!!!!!
Cheers, Julian.

Found Rob Kiyosaki’s Rich Dad books to do nothing more than state the obvious, with little practical insite. Many of the seminars out there are more about taking money off you than helping you with your financial journey. Better, I feel, to get in touch with a financial adviser or even a broker and determine where you are now and what money you…[Read more]

Michael,
Most likely the total you can go to is 80% of the value of both properties, but will depend on ability to finance, which may depend upon your investment property being positively geared for 100% financing (assuming you don’t have a deposit for the additional property), or on you having a substantial and secure alternative income stream.…[Read more]

Phil,
Suppose you paid your dad back and the rent went to $600 per month; assuming that is the market rate – why would you want to have a $175,000 property that only returns you a gross income of $7,200 (4.1% gross). Sell the property to your parents (or anyone else) as soon as you can, then buy only positive geared property in areas with an…[Read more]

Michael, sorry but I never bother with web sites for looking at property. I find there’s no substitute for the classified adverts (the Saturday edition of The New Zeland Herald is very good, try http://www.nzherald.co.nz ) and building relationships with good real estate agents – it takes time but it pays off for me. The best RE agents I have found are…[Read more]

Booboo, if you’ve got $300k why don’t you look at buying commercial. Less headaches. the tenants pay the expenses, long leases, tenants have a vested interest in keeping the property looking its best, better nett yeilds etc etc. Once into commercial I don’t think you’ll ever look back!
Best of luck, Julian

When doing the calcs don’t forget to take into account all the expenses ie rates, land tax, insurance, R&M, etc. Also allow for interest rates to rise, and allow for some vacancies. Budgeting on a best-case scenario is a recipe for disaster unless the Gods are smiling very sweetly upon you.
Good luck, Julian

If you are thinking of investing overseas doing so in New Zealand may prove easier and possibly more cost effective than elsewhere. NZ has no capital gains tax, no land tax (apart from rates), no stamp duty, and has a highest personal tax rate of 39c in the dollar. Conversely we have higher GST (12.5%) and higher company tax (33%).
Tax…[Read more]

Further, the agent only charges a fee if he/she finds the new tenant. There is nothing to stop you finding your own tenant ie running the advert and vetting the prospective tenant yourself, and thereby avoiding paying the agent anything. A valuer should be able to ascertain the rental value for less than 1k (commercial), and your lawyer could…[Read more]

Land tax, stamp duty, Capital Gains tax – that’s a hell of a penalty you guys pay for investing in your beautiful country. None of the above apply here in New Zealand at the moment. But before you jump on the plane for an investing spree it would be prudent to check out any tax issues when repatriating your funds, should you chose to at a later…[Read more]

Scarecrow7, I think you will find that Warren Buffet does sell, though by his own admission he does not (usually) buy specifically with selling in mind.
As far as this debate goes I found that Michael introduced some sound and thought provoking concepts, for which I am always grateful. Minimogul obviously holds on to some strongly entrenched…[Read more]