A trust is not necessarily the best option – the most beneficial entity depends on factors associated with the formation of the joint venture and its specific purpose.

You and your prospective partner should meet with a qualified laywer [and accountant] to discuss. I for one do not recommend taking advise from a public forum when it comes to…[Read more]

Westan – in response to your question..

Foreign investment plays a very important role in sustaining New Zealand’s property market – commerical and residential – and the economy.

If it were not for this foreign investment, it is very unlikely the property market would be where it is today – which has indirectly contributed to increased average…[Read more]

RE: “But the New Zealand government has made it easier for foreigners wanting to invest big bucks in Kiwi companies by doubling the threshold at which transactions have to be scrutinised.”

Why invest money in a New Zealand company when the primary incentive is the government will not “scrutinise” the transaction unless it is $100MM or more.

From…[Read more]

RE: “at the end of the day it doesn’t affect any one here from being able to continue buying in nz”

Restraints on foreign [real estate] investment can [and likely will] adversely affect every person who owns a property in New Zealand – and quite significantly.

— Michael

These “rules” appear more politically driven than common sense – the Labour Government attempting to gather support from those in the wider New Zealand community [in the build-up to the election] who do not understand the importance of foreign investment – capitalizing on the “New Zealand is being sold-out” theme.

“doubling the threshold at which…[Read more]

I have not come across a specific “village” zone as such, but I am involved in a medium to high density zoned project which was referred to during the planning phase as a village.

Because zones can have multiple variations, I recommend contacting the local council or the person who placed the ad to clarify.

Otherwise, it is likely to be a…[Read more]

Avoid “leasehold” and acquire “freehold” land – otherwise you will not benefit from appreciating values which 9 times out of 10 outweighs the lower entry cost.

Leasehold can also be very restrictive if you wish to improve the land – again a negative in terms of profit.

Asking the right questions comes with knowledge and experience.

The south…[Read more]

RE: “But as an Australian resident you’ll normally pay CGT in Australia on gains made in NZ.”

— This is correct. However, if you plan to invest in New Zealand for the longer term – buy and sell multiple properties, by avoiding capital gains tax and other fees you have more capital to leverage further investment than you would buying and selling…[Read more]

“NZ is attractive because Aussie is stuffed R/E wise until about 2007. A loss is a loss NZ or Aussie.”

Being an overseas investor who knows many foreign investors with an interest in New Zealand [and Australian] real estate, the trend toward investing in New Zealand is clearly no longer linked to the Australian market.

Investment decisions stem…[Read more]

Stock market trends should not be associated with the real estate market.

The stock market is very liquid and is traded in a completely different manner to real estate – RE takes time to buy and sell [trade] and therefore typically results in longer cycles.

As an example, it is common for a stock [or equity market, i.e. NASDAQ, DJ, etc] to rise…[Read more]

The research we have conducted indicates many “locations” in New Zealand are between 30-50 percent of their true value – comparative to overseas markets, accounting for supply and demand, etc.

Markets such as Auckland will continue to plateau in the short-term due to over-supply in specific segments – this does not translate to a downturn in the…[Read more]

Search for earlier posts on this subject. I myself have touched on the tax implications, etc several times in the past 2-3 months.

— Michael

“the company that I worked for in my last position offered JV opportunities that are returning between 32% and 65%.”

Which company and what were the terms?

“your security was guaranteed as you owned a proportion of the freehold property.”

Investment 101 – “guarantees” are nothing more than a marketing ploy. Developers who use this ploy will…[Read more]

“some even offer up to 70%p/a. But the average is about 30%”

Be very wary of any developer offering an annual return of 70 percent. Even 30 percent is not common and can be indicative of significant risk on the investors part, an inexperienced developer, or a scam.

There are a number of channels available for sourcing capital for the…[Read more]

“Tony’s six needs are quite different to Maslow’s hierarchy”

Although different, I think you would find the basis of Tony, etc theory “stems from” Maslow’s Hierarchy. There are too many parallels to suggest otherwise.

My point being, “Almost everything these motivational speakers preach is simply a different translation of theories, strategies…[Read more]

By searching this and the “General Property”forum you will find a variety of information on investing overseas and the tax implications.

— Michael

“Thats not exactly normal for a country showing strong economic growth.”

Strong economic growth?

The US economy is on the “rebound” – nothing more, nothing less at this point in time.

“Theres a lot more going on than appears on the surface.”

Let’s just say I know more about what’s going on “than appears on the surface”.

— Michael

“The Looming Property Crash, by Clive Maund”

I would take the above article with a grain of salt.

Most of Clive’s “predictions” are based on media hype during the build-up to an expected economic depression last year.

The depression did not occur – the US economy is on the rebound, which is likely to continue at a faster rate if/when a…[Read more]

Personally I would remove [1] altogether. This strategy will not result in independent wealth in terms of how a millionaire is defined today.

As pointed out, the future cost of money has not been taken into account. And 10% ROI is very high on a sustained basis and I am sure does not take into account inflation and other economic factors.

2.…[Read more]

Marc – less arrogance [or ignorance?] and some substantiated input would be welcome.

I will add that I find your reference to others posts/dialog lacking “meat” very amusing.

I for one – and I am sure there are others, find your mere rhetoric severely lacking in any substance whatsoever, needless to say avoiding the topic in question. And I am…[Read more]