Forum Replies Created
Hi Josh,
Great advice from everyone so far. I would add that subscribing to a lot of e-newsletters is a great way of keeping up with things and views in the market place. I subscribe to probably a dozen or more. Anything from mortgage brokers, property developers, to people who suggest cash flow positive (Margaret Lomas to capital growth Michael Yardney. Being informed and knowledgeable means you reduce risk and stress so the more you can find out the better. Books are great but magazines such as Australian Property Investor and Your Investment Property are providing articles which are right up to date and help both existing and novice property investors. If you can I would suggest you get some back issues over the last 6 months or more. Costly, not when it comes to making thousands of dollars both now and well into the future. Seminars are another good option but beware of paying excessive amounts.
Trusts- they are more important as you go along but come at a price in terms of accounting cost and land tax. I have 3 and as a good mortgage broker will tell you it is better to spread your loans as well as your properties over a range of suburbs or states.
Whilst you are both on good incomes I would advise against getting too carried away with investing overseas just yet. You are obviously still of an age to consider children so this is something to factor into any future commitment. The local market has plenty of potential and is a separate market to get to know although I understand the desire to invest in Nz.
hi, you don't say why you are looking for a trust so I will reply to your initial query. It would probably cost around $2500- $3000 to set up a trust structure. Whether it is a unit, hybrid or discretionary or some other. THe purpose may dictate costs down the track but as a simple and genral guide a tax return might cost you between $800 and $1000.
hope this helps
Hi Adore,
Depends on the advice you want. Not everyone requires a trust. This depends on your current situation. If you have lots of equity in lots of investments or businesses, even shares, then maybe a trust is for you. If you are starting to look at building wealth then until you aquire 2 or 3 properties then the cost of a trust in not woth the effort and cost in terms of additional accounting and land tax. I would suggest Gatherum Goss in Blackburn as they don't try to sell you trusts like c&n do. They make their money from being eithical and providing appropriate info without the big price tag.
Hi Jaqui,
Whilst i don't have any experience with buying off the plan I would suggest that there are many other ways to invest and reap rewards. Simply saving on stamp duty is not the only way to make a dollar. I like to buy undervalued property in good areas that have been overlooked. More research for sure but in the long term you have a good quality property giving high capital gains and you make those higher gains every time the property market goes up in value. This is where you will make good money holding a property long term. Another way may be to buy a house and land package where you do not have to pay stamp duty on house and land but just the land. Development is another area to look at, however you do need access to a fair amount of equity or high income to do this. As they say you make your money when you buy ! Buy right in a good area or an area going thru regenification and then be patient. Remember it also has to do with time in the market.
Hi, your question is quite straigt forward depending of course on who owns the original 2 properties. If they are in your name as the highest income earner then you may want to have it placed in your spouces name.
Companies do not get the capital gains tax offset of 50% therefore buying under a company name is a bad move in my opinion.
If your strategy is buy and hold then either pay a little more on land tax or in another entity. Depending also on how many properties you wish to buy you should consider a trust. Although land tax may apply and costs of accounting can add to the cost it does have it's benefits from an asset protection and estate planning point of view. Compare the land tax scales and make your own decision.
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I know of people who have worked with C&N and they confirm that they are overpriced and only really known by their appearance at seminars and not because of any special ability. They simply live off the clients they sucker in from their seminars and rip them off for heaps on what is on many occasssions just basic knowledge that any good accountant could tell you.
Gatherum Goss in Melbourne can do the same thing at a cheaper rate and over the phone. Give them a call and make some inquiries there first. Much better service and support.
Hi, I agree with Kuradji,
C&N make a big deal out of getting people to their Financial Health Checks charge $395 for what many times could be disclosed over the phone or a ten minute meeting. Often and in general most people would not need a trust set up for property unless they have a complex business or personal situation to deal with or multiple investments. Another reason maybe where the person is in an occupation such as a surgeon and therefore needs protection from being sued. The first or second time property investor is better off on a land tax basis to just invest in their own names. A lot of this information is really quite basic and does not require a FHC. (financial health check) C & N also overcharge for the setup of these trusts. On the whole it is simply a gimmic to get people in the door and have them become clients.
Not to say they cannot give relevant advice to complex situations but for the novice it is simply a waste of money as many people could testify to if they had access to this site and told of their experiences. In addition their new move into the SMSF field is simply a money spinner. The trusts they use are someone elses branded as their own and marked up by 2-300%. Do your own due diligence and check elsewhere for help at a much lower cost.
