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I would suggest you keep NZ loans for NZ properties and Aust loans for Aust properties. That way you have no exchange rate risk.
As for future expansion – do what you can afford and dont go over the line where you cannot sleep at night due to worriying about making interest payments.
This sort of applies to me.
My father was a builder and my brother did his carpentry apprenticeship with him. I went on to University and what got me going was that during School holidays, Dad dragged me to work. During Summer it was too hot and during winter it was too cold. So I was prepared to study so I could work in an office. In fact I was encouraged by my parents to do so.
On the other hand my brother now works for a builder who does alot of govt renovations and gets about $35 per hr. I have encouraged him to do the following;
1. Work for his Boss and on the days he is off due to weather or no work do the following –
2. Work on his own PPOR as this is all tax free ie. buy a house that needs fixing and renovate and then sell and upgrade.
3. Buy an investment property that needs work and fix it up. He has done a few and its amazing what he can do on the smell of an oily rag. ie. looks good for the little money he puts in.
4. He does some renos for me – so thats good money too.So in the long run – I believe he will be better of than me, as long as he is prepared to invest in property in addition to work. Sometimes he gets a bit pissed. I hate doing this on weekends when I do this all week.
Sometimes I wonder if I made the right choice. But all I really need to do is spend a few days doing some work required on a rental property and I realise – yes I do prefer working in the office.
Originally posted by GreatPig:Originally posted by yack:I have all properties in my name for negative gearing purposes.
You can also do that with a hybrid discretionary trust.
GP
I have the following concerns-
1. Can I still claim all the interest expenses in my tax return?
2. How does this effect my capacity to borrow with the Bank? Do I still sign personal quarantees – so it really has no effect.If my concerns are resolved I will investigate further.
Yeah – I hate that terminology – Price Takers and Price Movers. We aint in no lecture. Keep it simple Stupid.
Can you expand a bit. I have all properties in my name for negative gearing purposes. The downside is asset protection – however I do have lnadlord insurance and public liability on each investment property.
If you want to upgrade your home, I would sell it and pile all your equity and estate money into your principal home (PPOR).
Then use the equity in your home to 100% finance an investment property.
The thing to understand is that interest paid on your home is not tax deductible whereas money borrowed for investment purposes is tax deductible.
Good Fella
Well summed up – could not agree more.
I agree with Kay.
If its zoned residential, and they do leave and the surrounding properties ie. residential only sell for $150k or less then you paid you are open to loosing money down the track.
If the surrounding properties sell for what you pay then proceed. Dont mix up a commercial property with a guy who works from a residential house.
I was not at the seminar and I never intend to spend $500.
With the velocity of money thingy.
Please bear in mind all things are relative. You sell for $400k, you buy the same for $400k so why incur cap gains tax and selling costs and stamp duty on new property etc.
The only time I would sell is if I could buy a similar property for less (ie. its older and needs renovation) and renovate.
Ok. From my spreadsheets for each year. Here are my holding costs (rent less exps)
1998 (800)
1999 40
2000 500
2001 1300
2002 1500
2003 1600So in effect its put money in my pocket and allowed me to buy more properties.
<<<<<OK, the company my wife works for was listed in 1995. The listed price was initially $1.00 but fell to $.80 within a few days.
The shares went to $10.00, were split and are now $5.11 (as of 20 minutes ago).
So in 9 years the share price has increased from $1.00 (or $.80) to effectively $10.20.
So your $10,000 is now worth $102,000. >>>>Ok – 1997 I bought a 2 bed unit in Mentone, Victoria. Cost $90k, now worth $260k.
So my $10k deposit is now worth $180k.
ie. $$260k less owing ($90k-$10k) = $180k.
In fact the deposit was even less as I used the equity in my PPOR to buy the property.
Those examples are not share trading but passive investing. Similar to property investing.
So do you have $100k to spend on shares? It could also go the other way and you now only got $98k.
I am in this for the long term. How many successful long term share traders out there.
How successful have you guys been? I have disclosed my success. Give me something that will make me think – yeah good stuff.
A guy from my work was excited about 6 months ago. A friend of his had made $20k on stock option trading in a month. So the 3 of them put in $20k each and let the guy trade. To cut a long story short – They each now only have $5k left.
Thats my experience.
Ok – Who are these people anyway?
<<<<subject to completion of due diligence>>>>
Never heard of such a thing. But I would NEVER make an offer on a property unless you did your due diligence. Your only asking for trouble.
When I make an offer for a property, I always ask the agent how much do you reckon the vendor wants. Most bad agents give you a price, so you have a starting point at which you know their asking price.
Do your due diligence and see what the property is really worth. Never offer the price the agent wants.
Standard clauses are – subject to finance and subject to building report…..
Good luck with it.
<<<Larry Williams – Australian Trader, has manage to turn $10k into $2mill in one year…
William Gann – Manage to make a consistent $1mill each year and made more than $50mill and started with nothing (by the way he traded his way through the 1930)
Loiuse Bedford, Guppy, David Novac, Dale Gillham >>>>Who are these people – are they the Donald Trumps of share trading or average Joes like me.
<<<<You should get out more yack. There are many!>>>
Please enlighten me. Give me some examples of Joe Average who has invested in shares and started with $10k and turned it into $500k.
Jenman has offered me some invaluable advice with both buying and selling properties.
I ahve even read his book – dont sign anything.
Go to the following he has 10 good tips. I tend to agree with them all.
http://www.jenman.com.au/NewsArticles1.php?id=103
I have learnt much without going to those high priced seminars.
So what is it in a property sense.
My suggestion is that you buy a property, renovate, sell, buy a new property, you have more equity, renovate, sell. ie .you keep turning over.
I will stick to my buy and hold and sell the occassional property to realise the profit when I expect the market to go down a little.
Pepper
I did not notice you had posted this. Maybe we could close this and keep yours. Its probably an opinionated thread anyway.
