Forum Replies Created
You don’t actually get taxed twice as you get a credit in OZ for the tax already paid in NZ.
As previously mentioned. Insurance is about the same, solicitor is around $1000, banks shouldn’t charge application fees. (I’ve been able to get the bank to make a contribution toward my legal fees). Property manager, I pay 10% in one town, 8% in another.
Structure? As westan said there are many options, if you are borrowing in NZ you may find that NZ banks are unwilling to lend to an Aussie trust if it has a corporate trustee. You’ll need a NZ solicitor and accountant.
regards,
Rod
I thought that even having an ANZ account in both countries, the banks would still charge a TT and forex fee.you’re right, they do.
regards,
Rod
I have no probelm with buying properties that are distant from where I live. Currently I don’t have any in my own state. If you spend the time initially to get “your local team” in place (property management etc) then there shouldn’t be too much problem.
As both monopoly and westan said, make sure the property stacks up in all respects – not just the cashflow aspect.
regards,
Rod
my enormous amount of words was me just saying basically ‘my individual preference is for property.’ – and my reasons why, which come down to my experience, guidance, interests, risk profile, personal and financial goals, and successes. it is my “expertise” that means that *my* properties will outperform shares *for me*.Hi mini,
I don’t think anyone has a problem with this. However it’s not reasonable to extrapolate this to mean that property is a better investment overall or for everyone. Property is better for some, shares better for others. My personal believe is that for a passive investor, property is usually better, because of leverage. Most who buy shares usually buy them outright, whereas most who buy property usually borrow to do so. Whilst the underlying investment (I’m talking buy & hold – not trading) over a 5-10 yr period will perform similarly, the property investment will come out ahead due to the leverage.
Comparing buy & hold property investing to share trading is foolish, they are two different things. B&H property investing is more akin to long term holding of blue chip shares (diversified) and I suspect the returns are similar without taking leverage into account. However shares do require more “monitoring” and this where property comes out ahead for the average punter, they are usually blissfully unaware of the real value of their (property) investment as they’re not being exposed to an updated valuation every day. An active share investor (not a trader) can use this to their advantage and easily move from one share to another, a property investor cannot do this and the average share investor doesn’t either (they just watch their share value plummet and complain about the market or their broker).You have clearly done very well with your investments over the last year or so, but you don’t seem to acknowledge that there were risks involved in your investments and that just because your returns are good now they may not always be so. Many investments have shown great returns one year and negative the next.
You are clearly knowledgeable in NZ regional investing and have helped many on this forum with information on NZ (I have NZ investments as well and I’m grateful for your contribution). Why do you continue to criticise share investing and Australian property investing (compared to NZ) when you admit your knowledge is thin on both?
The real value of a forum like this is for members to contribute knowledge about those areas they are familiar with, not just to bag things which don’t appeal to them.
regards,
Rod.
Sounds like you’ve done OK so far.
I’ve done both, used equity for some deposits, used cash for others. Personally I like a balance of CG and cashflow properties as that’s what fits my strategy. Yours may be different.
Don’t be too influenced by the pace that others have invested at, only you can decide what is right and comfortable for you. You may decide that Yack is right and that you should stay away from regional/rural (but many here have done very well from them), but make sure it’s your decision not someone elses.
I think one of the most important things about investing is being able to make decisions.
regards,
Rod
Hi Jo,
I don’t think you should get blasted for just telling the truth.
Unfortunately there are a lot of uninformed opinions and an unwillingness by many (not all) to do even basic research. I guess the forum really is a reflection of real life!regards,
Rod.
It’s a good spot,
There’s also the wind farm project.
regards,
Rod.
Hi Jet,
Yes I’m aware of that, that’s why I do have insurance. Like many here I don’t wish to advocate one over the other. I invest in both and will continue to do so.
regards,
Rod
Come on Mini!!
Seriously, is there no topic you won’t hijack to tell everyone how good NZ is? [biggrin]
regards,
Rod
Very well said Acey,
However I get the impression that many of those here know more about the theory of how not to lose on shares than the reality.
Westan’s right, it is certainly possible to lose >50% overnight on shares. Obviously if you have suitable risk and money management techniques then this one event won’t wipe you out. But many traders still got it wrong during the tech boom/crash.
I can see much of this new found property wealth getting blown in the share market by those switching from property to shares who are long on theory but short on experience.
regards,
Rod.
Talk to your accountant.
However, my recollection is that purchasing costs are not immediately deductable. Some get added to the cost base for CGT purposes. Others can be depreciated over 5 years.
regards,
Rod.
What every government wants is to have an economomy that grows at a steady low rateI disagree,
What every government wants is to have an economy that gets them re-elected!
Rod.
Yep,
Seems to be 80% or lower (depending on the area) from what I’ve seen.
regards,
Rod.
G’day Westan,
that’s why I said generally not, as I’m sure there are some circumstances (such as yours) where a deduction can be claimed.
Fordlands certainly is a no go area for some managers, there are also some other parts of Rotorua which some managers don’t like either.
Rotorua’s an interesting place there are some really dodgy looking houses right next to quite good ones.
regards,
Rod
Generally not.
I’ve had depreciation schedules done for 3 pre-1985 build properties and all cases it’s definitely been worth it.I’ve easily had deductible depreciation well in excess of the cost of the schedule (about $450) so the report has been paid for in the first year, also the QS cost is deductible as well.
regards,
Rod.
My understanding is that with your current properties, you’d have to essentially ‘sell’ them to your trust, incurring hefty Stamp Duty on this transferalland possibly Capital Gains Tax as well!
Rod.
Same here,
Kiwi Pathfinder brand are good. Can get them from Dymocks.
Rod.
I have been reading the previous emails, and am wondering if you buy a +ve cash flow property in NZ and don’t bring the money back Aus will you still be liable for any tax in Aus?hi Ben,
Yes, if you have invested in your own name you will pay tax on the income in NZ. You will also have to declare this NZ income on your Australian tax return, but you will get a credit (in OZ) for the tax already paid in NZ.
regards,
Rod.
Originally posted by ezy.home.loans23320:I also have a question a friend of mine just bought in nz and said he had to pay 40% deposit
is this the norm for people in Aus buying in NZ
If not how do you go about obtaining finance at say 10% .thanks to all who help with information[mario]Generally a 20% deposit is required, but for some areas some lenders will require 30%. 40% seems a bit much.
regards,
Rod.
