Investment related books in general are tax deductions.

Your last question goes into a bit of a grey area. I suppose you have to ask yourself if you did not run this investment business, would you have still purchased the book? If you wouldn’t have, then the purchase of the book was relevant to the business and is tax deductible. Best to…[Read more]

Hi Guys

I am a software developer by day and by night when I choose to be. I am 29, and have 3IP’s plus my own PPOR.

I also support the All Blacks (oops – maybe I should have kept that bit quiet).

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

It is a shame this forum does not have surveys like I have seen on some other forums.

Surveys allow you to answer the questions without identifying yourself. It is great to see a quick graph of results.

Maybe an idea for the future?

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

ummmm – thanks doogs – I think. I knew I should have gone to those maths classes.

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

Hi Kierra.

The concept that you can own as many as you like as long as they are positively geared is true.

If your property is left vacant for a long time it will switch from a positively geared property to negatively geared. Positively geared means income exceeds outgoing, so servicability is no problem. But what you have to remember is that…[Read more]

I for one would be interested to see the formulas you used.

In NZ the top tax rate kicks in at $60,000.

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

Wow J!! I get the idea. You make a good point.

The original numbers are very theoretical and only really points to the idea that over time interest only costs you more in interest and total costs, whereas P and I costs less in total. My numbers are by no means a conclusive comparison. There are all sorts of what if scenarios you could use to…[Read more]

I have just done a few quick calculations for a comparison.

Assume you have a 200,000 loan, for 10 years at 7%
For interest only…
per month pay 1166
total interest paid = 140,000
total payments = 340,000

P and I….
per month pay 2322
Total interest paid = 78,000
Total payments = 278,000

So you can see interest only is very good for monthly…[Read more]

Personally I prefer old semi-do-up properties. By that I mean properties which are structurally sound, but look ugly. A fresh coat of paint, new carpet, a new garden etc. It might set you back 5k but the value you can add to the property could be worth a whole lot more than that. Requires you to purchase the worst house in the best street to…[Read more]

Of course if the floating interest rates went down……

If we all knew what was going to happen property investment would be no fun would it?

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

That is another reason to always look for positive cash flow properties. If the interest rates go up then you have a bit of room to spare before the property becomes negative cash flow.

If you have a number of properties then one option is to sell one of the properties, use the cash to pay lump sums off the other properties to get the total size…[Read more]

div43 – if you want to record depreciation against your property then my rentmaster software will do that as well as tracking depreciation on the fittings as well.

Unlike PIA and ez-rent this software does not record hypothetical future predictions for your properties but instead records the actual rent income and expenses as well as tracking…[Read more]

One thing to remember is that if you dont put money into your own house, and rent instead, that money can be reinvested into something else which is earning money e.g. shares, your own company etc.

By investing elsewhere you will pay rent, but save mortgage payments on your own house, plus earn the alternative investment income. Very much…[Read more]

Basically banks require a certain % ownership by you. e.g. 20%. They will lend the other 80%.

If you have a property worth 400K, and only owe 180K, then you effectively own 55% of you assets, and the bank ‘owns’ the other 45%.

If you purchase another house worth 200K for example, and dont use any deposit yourself, then the bank will give you…[Read more]

Personally I use my own software – rentmaster. More of a management package than analysis.

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

Hi Michael

I hope this is not seen as spam – but you did ask the question so I am answering it.

You could try my software at http://www.rentmaster.co.nz. PIA software seems to be more of an investment analysis software. My software records the actual daily income and expense transactions which I think is what you are looking for. It can therefore…[Read more]

Another reason the second property is easier is because you can use your equity in the first property to purchase the second one. Sometimes without needing any cash deposit. The third one gets easier again. The more capital gains you are getting the better for this.

Andrew
http://www.rentmaster.co.nz

Hi Jonny

There is a standard tenancy agreement form which is used in NZ. On this form you specify a fixed term where you specify an end date (does not have to be 6 or 12 months – could be 237 days if you wish).

If you want to have a look at the form it can be downloaded from the tenancy services web site…[Read more]

If you want some actual stats for Huntly (mining town 60km south of Auckland).

My brother purchase 2 properties there for about 95K each renting for about 150pw about 4 years ago.
The average tenancy term was about 6 months, after which the tenants left owing a whole lot of money and no forwarding address. It took about another 6 to 8 weeks to…[Read more]

By the way – in case anyone cares. I think commercial property is always fixed term over here.

Andrew
http://www.rentmaster.co.nz