Dom, either see if you can negotiate the price with the vendor, or ask them to fix it. Depends on how much they want to sell I guess.

If you can’t get any discount, ask yourself is it still worthwhile to buy factoring in any extra costs you now will have to pay to treat the damage, and get rid of the termites.

Cheers
Mel

If you hold the IP for more than 1 year, your CGT is only on half the gain, at your marginal rate.

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Mel

For FHOG you have to reside for 6 months.

For CGT purposes, I don’t believe there is a set time, but you do have to prove that you lived there, and if you moved within a month or so, you need to have a reason for it. The CGT free term is 6 years, regardless of living there 30 years or 1 month before moving out.

Cheers
Mel

Bernard, if your tenants had big deposits they should definitely be able to get normal financing. I would only offer the deal to them if they for some reason couldn’t obtain normal financing, and really wanted to buy a house.

I think it wouldn’t be too good if they took you up on a deal, paid above market, and a higher rate, and then found that…[Read more]

Jacqui, I would check it out, cos my understanding is that you would have to pay CGT for the initial period it was rented also.

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Mel

Good, except if you work out any of the ‘answers’ you could come up with, all of those numbers on the chart have the same symbol.

Cool sound effect though.

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Mel

Congrats Aussie.

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Mel

BlackJack, you said you had one?

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Mel

Lenders Mortgage Insurance. If you want to borrow more than 80% of the value, most lenders will hit you with this fee – it covers THEM if you default and they don’t recover all costs from a forced sale, and the insurer will come after you. []

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Mel

Ken, it really depends on how long you intend to keep it as your PPOR, and whether or not you want to sell it.

If you plan on making it an IP in the future, maybe you should put it in a trust. if you plan on selling it, maybe you should buy it in personal names to keep the CGT exemption.

Cheers
Mel

recovery, if you check out http://www.propertytalk.co.nz they have a huge library of links that may help. Plus there’s a lot of Kiwi investors that should be able to answer your questions too.

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Mel

Plus the rent is still less than a 5% return. I wouldn’t touch that! Especially not a guaranteed rental.

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Mel

I agree with Pisces. i think you might be stuck. Tell the agent to drop their fee if they’ve admitted to the mistake!!

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Mel

Lemmings just follow the crowd – don’t think for themselves at all. If one goes over the cliff, they all do, etc. etc.

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Mel

SIS, the ‘paying yourself first’ way to go is the way every wealth teacher suggest – especially the richest man in babylon.

It’s your investing money. You may pay it into your loans, etc. etc., but you have to do that first. As you said, you apportion everything, and spend what’s left.

I think you are doing what Bill has said, but you see the…[Read more]

I ALWAYS get a contents insurance policy – generally the minimum I’ve got is $10K.

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Mel

Hey Ben, Trundle is near (ish) Orange isn’t it? My cousin went to Kinross at Orange, and was friends with a guy whose folks had a farm at Trundle?

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Mel

Hey EZ, it’s the small ones you gotta watch out for []
LOL

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Mel

Hey recovery

I actually bought this one site unseen, and was having a look when up that way to look at one near Gunnedah that my Uncle bought – also site unseen! []

I did have pest inspection and building inspection done.

Having been there now, and knowing a lot more about the areas, I would definitely consider buying again.

Cheers
Mel

CGT will be sale price (less costs) – purchase price (plus costs).

the resulting profit will then be halved if held for more than a year, and added to your income. Tax is then paid at your marginal tax rate.

If you’ve held it for more than a year, at worst you will pay $25K in tax. At best, well, depends on your situation.

If your IP loan is…[Read more]