Have a defined exit strategy so that you know the potential profit in the deal from the start.

eg – buy and hold, wrap, reno, whatever – be able to picture the deal through to completion and you walking away with your profit ready to do the next (bigger) deal.

John.

(I believe that later this year there will be no +CF deals left in NZ, so I’ve…[Read more]

No Allan, there is no CGT on your PPOR. Unless you have a REALLY bad accountant!

(I believe that later this year there will be no +CF deals left in NZ, so I’ve moved here to invest full time. I can find +CF deals for your NZ portfolio for a fee, just email me [email protected])

From memory, their management fee is about 16% which is high, but includes all maintenance expenses. So you know where you stand all the time, no surprises.

I believe they actually factor in the long term lease (usually 6 or 9 years) into the purchase price, that is, its higher than just the property alone would be priced at. Keep this in…[Read more]

A quick note to Elves,

bank cheques are an option, but you will probably get a lower conversion rate than for an electronic transfer, and if you’re transferring $100K this can mean a few hundred dollars difference. So its not really the cheapest option in that sense.

Electronic is easier than manual (cheque = paperwork) for the NZ bank. It’s…[Read more]

It depends on your situation, and everyone’s different. You need to do what suits you best.

If your property has had a nice gain, and you want to lock that profit in as you feel the market has reached a peak then selling might be a good idea.

If you think the market is still going to keep going up and you have no reason to sell, then holding…[Read more]

WAF, what would you do with the land? Remember Shape-O…

If you have an exit strategy in mind (i.e. how you are going to make money with this deal) then you can choose your entry strategy to suit.

For instance. Say you buy the land and then subdivide and build townhouses on it and you believe you can sell all these for $800K no problem. (I’m…[Read more]

Oh just another thought. When I was starting to buy property all I used was a conveyancer.

Now that I am seriously investing, I use a good solicitor.

If you are seriously investing, then you need a good solicitor as much as a good accountant.

John.

(I believe that later this year there will be no +CF deals left in NZ, so I’ve moved here to…[Read more]

If you can find a solicitor who is also a property investor (or at least is good enough that he or she SHOULD be one) then they are great as part of your team. For example, say you are buying a property and you cant arrange the building inspection in time and the contract is about to go unconditional and you dont know what to do! What are your…[Read more]

Hi Kitdoctor.

I am in the same situation – I have CBA account and NZ bank account. No it cannot be done online using Netbank (yet – its coming apparently).

You need to call into any branch of the CBA and complete an IMT (international money transfer) – costs about $28 (plus whatever your NZ bank charges to receive the cash at the other end,…[Read more]

Hi Jaffasoft. The MAP is still underway, so best to wait until the end when the results are in… we’re still having a go (as you say).

One of the big things we’ve all realised in MAP is that everyone is doing something completely different to everyone else. So to be honest, there’s actually no point putting up a case study like you ask, as…[Read more]

Dean, I agree with Redwing and MortgageHunter. There seems there’s one of two things happening here:

1. You are in the lucky situation of someone being interested in your property and can make a quick $80K. Don’t kid yourself – if this is the case, take the money! I dont know how much you earn, but probably you could take a year off and still…[Read more]

Hi Tomori,

comments from others are worth considering – if you want to free up capital for more deals you could just refinance to get at the equity in your properties. However if you feel the market is changing downward, or if you are in NSW and want to avoid the new stamp duty on exit, or simply want to take some profits (which contrary to some…[Read more]

For your cashflow calculations, the difference tax makes is simply another line to add in (to the examples Steve gives in 0-130 which you’ve already seen).

For example, in the book all the deals are worked out without depreciation considered (there are reasons for this but i wont go into it as you wanted to know how to incorporate a tax rebate…[Read more]

There’s also the Lord of the Rings aspect. yeah yeah you say, but think about how big this is… Suddenly New Zealand is the ‘hot’ destination for millions of Americans who are getting married here, moving here, having holidays here…

It’s suddenly on the radar and is being heavily promoted (have you seen the Air NZ planes with full LOTR themes…[Read more]

Hi all, I have three comments:

1. I have IP’s left in Hobart that I have been considering selling to take profits (to reinvest in another market, and yes that would be NZ). If this new tax were in Tas not NSW I would be selling immediately. I wonder how many NSW investors are sitting on a stack of potential cash and will be thinking along the…[Read more]

Hi Gran T (!)

I’d like to help as this is the situation faced when I moved from Sydney to NZ recently (and yes getting finance has been tricky, but mostly because I am now a self employed property investor and have changed career and stable income etc all in one go).

You need to think of it from the banks viewpoint. Basically anything is…[Read more]

Great tips Brent!

I feel that one of the bigger risks is to the uninformed investor that buys in NZ without really knowing the market here. Specifically:

1. Someone who buys over the net or phone from Australia (still cant believe people do this).

2. Someone who flies over, hires a car for a week and does a whirlwind tour to buy properties in…[Read more]

Anythings possible if you find the right person to talk to… butin my experience 80% LVR is the limit for Aussie investors in NZ. Plus if you go over that you have another cost to factor into your CoCR calcs, namely mortgage insurance.

Stick to 80% or less in the current market would be my tip, depending on your own circumstance.

Good luck…[Read more]

put some in the bank, earning good interest, then offset the tax on the interest by conservatively gearing into property and/or shares as well (unless you like to take higher risk, are experienced and want everyting to happen faster).

Say $100K in the bank

and

$500K + $500K borrowed = $1m property portfolio.

Depending on your time available,…[Read more]

I would suggest that you secure the property under contract in your name and/or nominee (subject to due diligence, or a clause that states you will be forwarding the deal, if you have lots of buyers and know this can be done quickly) before offering the deal for a spotters fee. This way you can freely discuss it knowing its already under…[Read more]