blogs wrote:
Hmmmmmm and we still have a booming economy and 'proprty shortage'…..

 The property shortage is well documented and the economy is still booming if you take economic growth figures in to account. This article doesn't refer to either of these things. The article states it's interest rates and the falling stockmarket that have d…[Read more]

I have just purchased a couple of bargain properties in Perth and are looking for others and are very optomistic about the next few years. Interest rates have just about peaked and will come down quickly in the next 12 months as the fear of recession becomes greater than the fear of inflation. Rents are increasing at a great rate, due to the hu…[Read more]

Firstly in the interests of disclosure I am an accountant so perhaps have a biased point of view.

IMHO people who complete there own rental tax returns are a lot more likely to have an ATO audit. If you think you have completed it correctly then perhaps you are not to worried about this. However the simple fact is you cannot rely on ATO phone…[Read more]

I have been a tax accountant in Australia & NZ.

What people should realise is the two countries have completely different tax laws relating to trusts, companies and property. Overseas (Australian) ownership of NZ trusts and companies can create a lot of headaches for the NZ non residents. Higher NZ taxes can be imposed and financial accounts can…[Read more]

Just getting some tiling done in Perth. Cost $34 per square metre for 50 sqmetres. Tiler booked through tile shop. I thought that was expensive!!!

ned kelly

Celebration homes are under the same ownership as Dale Alcock homes and The Homebuyers Centre. Basically they use the same tradespeople it’s just the building standard specifications are higher for Alcock and less for Homebuyers in relation to Celebration. So if you are comparing apples with apples you would have to compare Ventura with Dale…[Read more]

I’ve lived in NZ and have seen how the small towns are hit hard when there is an economic downturn. Things get very tough and people migrate to the big cities or Australia. Any Australians who have invested in places like Tokoroa in the last 12-18 months must seriously look at reviewing their NZ portfolio. You’ve probably lost 20% already on the…[Read more]

IMHO there is still money to be made in Perth buying blocks of land and building. Did some research on the weekend. Estimated if I bought a certain block, built on it, accounted for all other costs (incl interest) then there is a 60k profit based on todays prices. If values go up 20% in next year add another 70k to that. [biggrin]

ned kelly

Purchased 360 square metre cottage block in Butler (36km north of Perth) May 2005 for 100k. House just been completed on cottage block 100k (incl site costs). Other costs stamp duty fees etc, 10k. So total cost 210k. Current value 400k. Thats approx $3650.00 a week increase in value.

ned kelly

If for example you had an investment property in NZ you would file a NZ non resident tax return and include all income and expenses and then file an Australian tax return and again claim all income and expenses. The main difference between the two returns will be depreciation. NZ has a lot more generous depreciation regime than Australia. As…[Read more]

I posted the following on 9/11/05. Did not receive any replies to the posting.

“What about the exchange rate worries in relation to owning overseas properties?.
NZ for example averages an exchange rate with Australia of $1A equaly 75cents NZ. At the moment it is around 90cents NZ and many commentators are saying the NZ dollar is overvalued.
I see…[Read more]

“a suburb 40km north of Perth slightly inland of a rather desolate coast that blows like the clappers in Summer and is a demographically challenged area (streets at night stuff).”

Yep you can tell from the following link it’s the last place you would want to live or buy an investment property. Would you walk these streets at night!!! or want to…[Read more]

“Just take a look at Sydney pricing….its simply better value than Perth.”

JVT I agree with AUSPROP, show us some Sydney properties of comparable value to our examples. Is there any???.

ned kelly

[biggrin]

Please tell me where I can buy a 4×2 800m from the beach in Perth for $350k?

Here’s three properties to the north of Perth for a start!!!!.
Like I wrote previously Perth still offers good value and…[Read more]

IMHO Perth is still good value for money. You can still buy a large near new 4×2 home 800 metres from the beach within the Perth metropolitan area for $350,000.00. Can you do that in Sydney & Melbourne?. With the lifestyle Perth has to offer I think a median price of $400,000 is not out of the question in the next 2-3 years.

ned kelly

Terry, thanks for your reply, doesn’t he have to have been self employed in Australia for 2 years to get the no doc loan?.

What would be the position re getting a 90-95% loan.

Thanks

ned kelly

What about the exchange rate worries in relation to owning overseas properties?.
NZ for example averages an exchange rate with Australia of $1A equaly 75cents NZ. At the moment it is around 90cents NZ and many commentators are saying the NZ dollar is overvalued.
I see Australian investors in NZ losing 10%-15% on the value of there investments…[Read more]

Well that’s news to the NZ Inland Revenue Department!!!!. Refer below extracted from NZ IRD website.

New Zealand
New Zealand does not have capital gains tax.

The link is:
http://www.ird.govt.nz/yoursituation-bus/australian/comparison/#cgt

ned kelly

The commission’s report in November 2003 published details of overseas tax arrangements on home ownership that would indicate that the Australian system is both unique and generous.

New Zealand landlords are allowed to gear their properties negatively but the capital gains tax discount is limited to a clawback on depreciation. New Zealanders do…[Read more]

I would suggest based on the article below you are very careful investing in Invercargill which is in Southland. You may get positive cashflow but it appears there will be no capital gains in the foreseeable future. Good luck.

Property slump – where it will strike
23 October 2005
By IRENE CHAPPLE

A property slump will hit the South Island over…[Read more]