I have placed a copy of kelvinh’s spreadsheet on the internet and you can link to it by clicking on the following link.

http://www.rentmaster.co.nz/propertyinvesting/cashoncashreturn6.xls

Andrew
http://www.rentmaster.co.nz
Software for Landlords

No Problem Fudge111. Glad to help out.

If anyone else has any other small useful property related resuources they would also like posted on the net, then let me know and I will consider hosting them for you.

For those who have not noticed, the file can be downloaded from…[Read more]

Thanks Fudge111 for this great excel spreahsheet. If anyone else wants it, I have made it available on the internet. Just follow this link.

http://www.rentmaster.co.nz/propertyinvesting/propretuen.xls

Any comments, post them back here.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

If someone wants to send me a copy, I would be happy to put it on the internet and post an address where everyone can download it from.

andrew at rentmaster.co.nz

Andrew
http://www.rentmaster.co.nz
Software for Landlords

I think KPI are their own worst enemy on this one. If they had run an unbiased and independent magazine in the first place, I doubt anyone else would have created another one. There is enough disgruntled people out there to make another one viable.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

Yay! About time too.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

yeah – we gave them the rugby league. We didn’t really want it anyway. We have already got the Tri-nations and the Bledisloe Cup. We were running out of room in the cabinet, and we have to leave room for the World Cup.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

All 5 properties are owned by a certain NZ property investor who enjoys reading the riddles on property investment forums – good light entertainment. Therefore the fish is in the house owned by the NZ’er.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

Coro St is still on Tuesdays and Thursdays at 7:30. Dont watch it myself though.

Marae DIY sounds interesting. A bit of 4 by 2 and some number 8 fencing wire is all we need

Andrew
http://www.rentmaster.co.nz
Software for Landlords

You might have to check what the banks requirements are. If you purchase a second IP, and borrow against the first one, then the first one becomes locked into the new mortgage. You may then have trouble selling the first property because I think the bank has an interest over that property.

Not exactly sure about it though. One of the mortgage…[Read more]

The internet is a good place to start me thinks.

Find out what rents are available in different areas for average houses. Then do the calculations based on what investment return you are looking for (.e.g the 11 second formula). That will give you a preferred purchase price. Then search for properties for sale in the same area and look at the…[Read more]

I used http://www.mikepero.co.nz and was happy with their service.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

The risk of earthquake depends on where you buy.

Draw a reasonable straight line from Rotorua down through Wellington and down the middle of the entire south island where all the muntains are and that is where the fault line runs. Close to fault line = increased risk. They built our capital city in an earthquake zone – who’s idea was that?

We…[Read more]

Here is a simple example of how negative cash flow can be better.

House 1 (positive)
Price $50k
Cash flow +$5k
Capital gain 10% = 5k
Net return = 5k cashflow + 5k CG = $10k

House 2 (negative)
price $200k
Cash flow -$5k
Capital gain 10% = 20K
Net return = -5K cashflow + 20k CG = $15k

This is a very simple example. Cash flow includes…[Read more]

Excellent post Bukti1.
Some good comments, and I agree with it in general.

I think the main issue with NGP is the servicability if you have too many of them. As o2bfree points out the best portfolio I believe consists of some of each so they balance each other out. Starting out with PGP and adding some negative ones later.

An increase in…[Read more]

Kia-ora AussieRogue.

My properties have about 75-80% mortgages on average (based on purchase price). All are in suburban Auckland NZ.

It is possible (in suburban Auckland) to get a $200k property with positive cash flow and about 8% return. Need to do some hunting though.

I suppose the general perception is that the cheaper the property is,…[Read more]

Big mortgage brokers are very large organisations who effectively give the banks many millions of dollars of mortgage business every month or week. The banks will bend over backwards to keep these brokers happy otherwise they will take their millions elsewhere. For that reason they will give the brokers VERY good deals.

In NZ they normally drop…[Read more]

I must admit that the Australian tax schemes do seem to be quite harsh.

The highest tax bracket in NZ is 39%, and companies are taxed at 33% regardless of their income. No CGT and no stamp duty.

However if you are negatively geared, the tax refund can be a lot better than over here.

Andrew
http://www.rentmaster.co.nz
Software for Landlords

I personally think that negative gearing still has its place.

Generally speaking good cashflow properties tend to have not so good capital gains. Properties with good capital gains tend to have bad cash flow.

If you have a good cash flow from other income e.g. you day job or other positive rental properties, then the capital gains from a…[Read more]

The KPI magazine certainly is biased.

I attempted to advertise my software in their magazine but they refused to let me. Richmastery has their own software package and so they told me it was not in richmastery’s best interest to advertise a competing product. If this was an independent and useful magazine the readers would have the freedom of…[Read more]