Forum Replies Created
Hi Sonny,
If you do a search back through the forums you’ll find many places have been mentioned in the past.
Of course every town has it’s own special set of potential risks which need to be considered.
good luck,
Rod.
G’day Sonny,
Got any info to support this assertion?
regards,
Rod.
If you’re pushed for time you’ll will probably get great leverage out of using one of the birddogs who operate in the areas you’re interested in.
If you can possibly manage a few days though, I would recommend going over and driving through some of the areas to get a feel for the place.
Things can be quite different when you’re “on the ground” compared to photos on the internet.Even if you subsequently purchase through one of the bird dogs, you’ll have a greater appreciation and understanding of what you are being told.
Mini’s quite correct. It’s best to use a NZ lawyer and also a good idea to get preapprovals sorted out prior to purchase.
regards,
Rod.
Hey what gives??
Some of the posts in this thread seem to be missing. Now it makes even less sense!!
regards,
Rod.
Hi mini,
somehow I knew you would respond [biggrin]
I have nothing for admiration for what you have achieved, and it’s clearly your passion that has got you this far down the path in a relatively short time. The point I was trying to make is that it would be nice to be able to have a balanced discussion on property (and other investments) without having the “CF+ve is the only way” sentiment shoved down your throat.
For some people a portfolio of CF+ only properties may be suitable, for others a mixture of CF+ and negative gearers. And for still others a portfolio of (shock horror!) negatively geared properties may suit. It all depends on individual goals and comfort levels. As I mentioned above this site (good as it is) could be so much better if some of the discussions were a bit more balanced.
regards,
Rod.
Ted,
There’s lots of good information on this site, and not just about CF+
However, you do highlight the most irritating thing about this site. Which is the almost evangelical fervour which is unleashed whenever something about the book(s) or CF+ property is questioned. There are many ways to financial independence, CF+ property is just one of them, unfortunately many here who have only read the book and been to a couple of seminars get very defensive/protective when “the only way” is questioned.
regards,
Rod.
I agree with Gerry,
There are certainly possibilities in NZ, but they do have throw up a whole other set of risks. Not a problem as long as you are aware of them and take them into consideration.
Aus is certainly tougher at the moment, there are positive cashflow properties around but in many cases the overall quality of the asset may be questionable. The key is to be patient, do the research and when a good opportunity comes up be in a position to make a decision.
regards,
Rod.
G’day Chris. Welcome to the forum!
As Sue mentioned, the first thing to do is a good assessment of the existing properties, with a view to the overall situation without rushing into anything.
There are probably many options, I certainly wouldn’t rush into selling without having a good idea of how selling fits into the overall plan.
Feel free to contact me if you wish.
regards,
Rod
I went to the launch last night as well, very good. (A bit bigger than the one for 0-130, a year or so ago at Borders!).
Welcome to the forum Phil, you’ll find plenty of information here. The real part though is not just having the info, but having the will/motivation/desire to use it.
regards,
Rod.
Hi all,
As Del said it’s best to go and have a look at Tok and get a feel for the place. There are certainly some parts of town to be avoided. The property managers will generally point you in the right direction. (I have dealt with Century 21 in Tok).
regards,
Rod.
Del is correct.
For the trust to be a NZ trust, the trustees (or a majority of them) must be NZ resident. If you aren’t a NZ resident you will either need someone in NZ to act as trustee or set up a NZ company to be a corporate trustee. Just beware of the NZ audit requirements for companies with >50% non NZ ownership.
regards,
Rod
You’ve spoken to a NZ accountant. Have you spoken to an Australian one familiar with this area?
If you’re talking about rental income, then I would have thought either the trust in NZ would have to pay tax on the income if it retained in the trust. Or if you distribute it then you are liable. I don’t know if rental income to the trust can be converted into a capital distribution to you.
But, I’m no accountant.
regards,
Rod
G’day Peter,
It’s good to see you’re human after all.[biggrin]
regards,
Rod.
the danger with LOCs are some people have these on investment properties and then put all of their salary in, and take it out again. The ATO considers it to be a repayment when the money goes in and a reborrowing when it comes out. So the itnerest on the component withdrawn will nto be deductible.Yes this a trap. This is where an offset account is often a better way to achieve a similar result.
Rod.
Hi Gerard,
Much of this has been discussed here before (many times) do a search and you may find many of the answers. Also check out http://www.propertytalk.co.nz there’s some good info there as well.
regards,
Rod.
As richmond said, LOC’s are fine and very convenient to use for investment purposes (deposits, emergency funds etc.). The problems usually happen when they are used like a big credit card for non investment purposes – cars, boats, tv’s – “equity mate” if you know what I mean.
regards,
Rod
That’s what I was trying to say. If you’re an Aussie resident you must declare all worldwide income, irrespective of whether you physically bring it back or not.
Rod.
Talk to your accountant.
However if the NZ IP is in your name (not a NZ trust or company) then I would think you should declare the earnings in OZ as well irrespective of whether you physically transfer the funds.
You should get a credit in Oz for the tax paid in NZ though.regards,
Rod. (I am not an accountant, talk to a real one).
Trisha,
If the NZ property isn’t the security for the loan then you should be able just to do an international funds transfer. If the property is the security then it would be more difficult, I don’t know if Aussie lenders will accept NZ properties as security for loans.
Maybe one of the mortgage brokers here knows the answer.
regards,
Rod
NZ trust vs Aussie Trust.
As mentioned above, most NZ lenders won’t lend to a foreign company (so if you have an Aussie trust with a corporate trustee it may be difficult).
You can set up a NZ trust, but the trustee must be NZ resident (otherwise it isn’t a NZ trust).
If the settlor and beneficiaries are non NZ resident then the trust will be classed as a foreign trust for NZ tax purposes (even though it’s a NZ trust). distributions to beneficiaries attract NZ withholding tax (10 or 15%), but you get a tax credit for this in OZ. If the trust retains the earnings it is taxed at 33%.I consider that a NZ trust gives greater flexibility and better asset protection as it keeps NZ investments (and borrowings) seperate from Aussie ones. There are however a few traps particularly with regards to the corporate trustee (audit requirements), so get good advice.
regards,
Rod
