The decline of the US dollar has been an attempt by the Federal Reserve to kickstart the US economy and manage inflation internally.

However, economic trends are leading towards a much stronger US economy in 2004 which should see the US dollar strengthen and the status quo continue.

In effect, the negative impact on exporters in Australia should…[Read more]

RE: “If you don’t know the basics of costing you probably should not venture into development.”

Property development can be the most profitable facet of real estate, and should not be overlooked by anyone with a passion for this business – whether the person is experienced or not.

The key to success in property development is building a team of…[Read more]

Building Industry Associations often produce annual publications which outline the cost of labor, materials etc per square meter/foot for specific regions.

I am aware Rawlinsons offers a periodic construction handbook for New Zealand, it may be worth contacting them to find out if a similar publication is available in…[Read more]

Because I am not located in Australia I am not privy to lawyers or other professionals qualified in lease options.

What I suggest is submitting another post asking others to refer someone. I would recommend asking for references, or conducting some form of due diligence before proceeding – to ensure the lawyer has sufficient experience in lease…[Read more]

Student accommodation is certainly an emerging and profitable sector in New Zealand, specifically Dunedin. Although I am not involved in this sector, I know of several investors who have found it to be very profitable.

Market data we have received suggests Otago [Queenstown, Wanaka, Dunedin etc] is predicted to continue its “boom” cycle for at…[Read more]

Chan$

Although I don’t deal in industrial property, I understand the difference is minimal.

Industrial tentants are generally longer term, and often have to comply with enviromental/local government regulations which do not apply to commercial tenants. Because of this, they can be more costly to secure in terms of T/I and/or meeting regulatory…[Read more]

Commercial property can offer higher returns versus residential, but the up-front cost can be substantial in order to secure and retain a quality tentant [T/I or “tenant improvements”] – this is often influenced by supply/demand.

Commercial is also more of a numbers game than residential. Costs/profits are generally measured on a square…[Read more]

I enjoyed your response, but I was not so concerned with the technical aspects, as outlining a fundamental consideration for someone who it appears may not have much experience in the formation of partnerships/joint ventures or otherwise.

If you refer to my original post you will see I was not critical of [or concerned with] the structure itself,…[Read more]

To clarify my feedback, a “partnership”, “joint venture” or “operating” agreement [fundamentally one in the same] should be structured to protect the partner’s interests.

This is seperate to the entity itself – it does not matter whether the entity is a LLC, unit trust, limited partnership or otherwise, the agreement includes the operating…[Read more]

This statement is not necessarily accurate..

“At law, each partner is able to legally bind all other partners with their actions, even though the other partners aren’t aware of the obligation or liability. VERY DANGEROUS!”

Whether you form a trust or other entity, you should have a joint venture/partnership agreement which details each partners…[Read more]

There are no set parameters for a lease option, meaning you should outline what is affordable, and considered fair for both parties, and submit an offer to the property owner.

Although it is common for the rent payment to increase, the difference is generally applied toward your down payment. To protect this investment you can include a condition…[Read more]

This comment sums up the difference between attaining wealth or a comfortable living..

“It is the capital growth that makes people rich, not the income.” [Terryw]

Why set your goal at $1M in 5-7 years – aim for accumulating wealth at $1M+ per annum from year five. If the investment strategy you have outlined is successful, this is a very…[Read more]

Julian

In response to your comment below, at this time the two countries are independent in terms of tax policies meaning funds returned to Australia would be subject to CGT.

This policy is not likely to change in the foreseeable future. New Zealand would in effect have to become a state of Australia, which implies New Zealanders would then…[Read more]

I would agree with Julian’s comments re: investing in New Zealand, which we have been monitoring and investing in for some time.

In terms of taxes and foreign investment policies, this location is not complicated, especially if you originate in Australia.

However, although New Zealand does not have CGT, capital gains tax does apply on…[Read more]

Because land options generally enable the developer to “control” a site for an extended period prior to settlement, the contract “may” have to reward the vendor – which can be as simple as agreeing to pay the asking price.

An option is a formal agreement between the buyer [developer] and seller [vendor] subject to specific conditions.

From a…[Read more]

Mel/Mcollins

The US is a very fickle – and in many States, over-inflated market at this time. Especially in California which has reached its peak in many locations.

In my opinion, the cost to acquire property in the US – using AUD, taking taxes etc into account, versus yield, would be high risk at this time unless you have a very good…[Read more]

mcollins

I understand http://www.ziprealty.com is a good site for locating investment properties.

— Michael

BeerBoy/Gavin

We deal in a number of commercial transactions/loans between the US and Australia/New Zealand and I am unaware of any US financial institution that will lend funds offshore – in terms of personal/home equity loans.

If you are a commercial interest with a track record in the United States, the capital is secured, and you or the…[Read more]

MM,

“I think you’ll find that most of the richest people in the world hold their assets in real estate.”

— As I have said from the beginning of this so-called debate [which I will admit I now find quite amusing – not in a derogatory sense] buy and hold is a strategy that can be implemented on occasion – it is not necessarily the best option.…[Read more]

Guccigal

If you have experience in the development process, in terms of selling/acquiring holdings OTP, then I would recommend investigating projects in New Zealand where apartments in particular are being turned over several times before construction is completed. Many buyers originate in Australia.

However, as picja1 suggested, land would…[Read more]