Yeah, i disagree with that, ‘hold’ is just an exit strategy and no less speculative or not as any other strategy.

I mean if you hold cash, you are ‘speculating’ that cash is still worth something tomorrow…
or else you’d buy gold, (speculating that it would go up) or property (ditto) or shares (ditto.) But the speculative nature of any investing…[Read more]

as little as about $650

masteraccountants.co.nz

company – online for $55 bucks
NZ companies register

but might be better to do this through an accountant if you don’t live there

“Debt can pay for debt.and its tax deductible (?)”

Michael, this is absolutely killer stuff!
Wicked! – I think that absolutely nails it.

I’m mulling that one right now!

deals are available all over NZ, in cities as well as smaller towns.

realenz.co.nz
has the deals and also the market rental stats
(free)
You can also buy region overviews and e-valuations (i.e. comparison sales in an area for the last 6 months to a year, all sorts,)
at qv.co.nz

The last two excellent deals I purchased myself have been through a…[Read more]

The worse your property is and the less you want to keep it maintained and spend money on it, the more problems your property manager will have getting top dollar for it. then you will blame your rental manager and it might not be their fault.!

Basically if you have a decent property and are a good landlord and attend to things promptly, when…[Read more]

Hi Loanwolf,

I am replying as a first-time small developer i.e. haven’t even done my first one yet which is two townhouses in a residential area. they will be similar in style to other existing housing in that street.

>I am assuming you all have enough cashflow >coming off your investments to fund your >lifestyle completely.

I do live off my…[Read more]

Thanks Michael, I get how the interest is capitalised i.e. part of the cost of the development, but are you saying that you use equity to pay off interest, i.e. sell stuff? Or do you take out a loan and use some of the lump loaned to service itself?

I also understand that banks will sort of let you provide equity instead of serviceability. But…[Read more]

positive gearing is just negative gearing in denial

– Minimogul

“take charge of your life as your own boss”

indeed, and my mother tells me I did this age two

and yeah – I heard 9-5 sucks, and I don’t know many people that actually do it. I did have one friend who was an employee but she was investing on the side (v. smart cookie) and bought a bazillion properties and now just grooves around various countries…[Read more]

sort of how melbourne compares to adelaide. both are lovely and both well worth going to on the same trip.

dunedin has this cool old edinburgh-ish flavour to it, amazing place, and it has water – a harbour – peninsulas etc
CHCH is very flat with a beach a few miles out of town – city looks like oxford england ‘punting on the avon’ – literally -…[Read more]

Guys, what a breath of fresh air, and thanks for that.
Don and Liz I have been really enjoying your guys’ posts and some have hinted that your portfolio has become nice and hefty and I think that’s awesome, congrats.

> From memory your new developement/s are in NZ. I thought the whole idea was
> growth. Not just in the financial sense but also…[Read more]

I too think that (surprise, surprise) +ve CF is the only sort of deal to get. Oh, I did by some land once speculatively, but my portfolio is always +ve CF overall – the surplus was paying the rates on the land. Anyway +ve cashflow lets you continue to invest. I heard steve say ‘I have never bought a negatively geared property’. And hey look how…[Read more]

>good grief MiniMogul… the effort you put into tax dodging must be mind boggling!

Ausprop, I have never dodged tax in my life – tax evasion is illegal anyway in case you didn’t know.
It sort of pains me that you would even write that about me, that I must ‘put a lot of effort into tax dodging’,
I mean – whoa! Like where did THAT come from!

It…[Read more]

Hi Checker,

that is very unfortunate. I would certainly recommend that you – anyone – see a lawyer before adding, writing, or inserting any clauses – let alone signing, especially if you ‘don’t know’ – no matter how experienced you are.

Also if you mean to be able to get out of a contract on due diligence, why not add a due diligence clause?…[Read more]

Great topic.

My partner is very supportive of ‘me’ – and although the obsession level with property between us is very different, I am happy about that as it gives me balance! It’s sometimes hard to shut the computer off (I just love my Mac which feels like an extension of my brain -) but it is so important to just…turn off the property deals…[Read more]

sure but you’ll have to email me your email address, can’t do attachments through the forum

Yes Ozi
Exactly,

I think one in ten would be quite likely a good buy “at the right price” of course, and 9 you wouldn’t even bother offering on. But you sort of have to be on the spot to be able to tell the 1 from the 9, you can’t really do that over the internet – at least without spending a fortune on due diligence.

“the way the tax system works means that a trader is taxed more than twice as much as an investor,”

Haha – I am laughing ironically here because this may be true for you and for what your tax specialist has told you, but it depends, it depends, and it depends….

Ok, so if you are developing in Australia, you should do it by starting a Nevada…[Read more]

Hi Dvane,

I wasn’t classifying you as an A.W. – I used to live there and I have a lot of friends who ‘invest’ in Herne Bay, Matakana, Leigh, Westmere, Ponsonby, – you get my drift – they wouldn’t even touch Henderson, Papatoetoe or Otara much less Tok. Yeah, A.W.’s. And I use that lovingly as I have had many a dinner table debate about what I am…[Read more]

“I can’t envisage anything much that would require only an 8 page contract… demolition may be a couple of pages perhaps.”

Hi Ausprop

The contract presented to me was only 2 pages long but I saw too many holes in relation to the what? where? how? when? how much? who? what if? and so on. So the clauses I wrote or rewrote were to clarify things…[Read more]