Forum Replies Created
Hey Don & Liz,
What can you do…. If people keep bagging the place … theat means the more for us!
:o)
Cheers,
Kiwi.[baaa]Hey,
If you are still having a proplem…..
You could try running a few adds in the local paper:1 Advertising with a twist….. 2-3 weeks free rent… this way you can keep the rent price up there.
2. Perhaps advertising to rent to own…… so they can rent it and build deposit up until they have enough to finance it (Increases your return by 15-30%)
3. Advertise with FREE meal tickets to a nice resturant or event….
**What are you losing now in income? … if you spend a little in tryuing a new teqnique… you may have the phone ringing off the hook. and be able to sort through the chaff to find the gem Tennant.Or.
Ring all the RE’s in the area and fake hunting a property to rent… ask them what is about and how quiclky they go.. or what the waiting list is like. Also whathe rent is for them…. this way you can get a sense of what the rental demand is like.
Cheers
KiwiWe found that getting an NZ broker…. helped us:
– Get a top NZ bank to fund us
– Better interest rates than AUSSIE
– 90% LVR (less of our capital required)
– They negotiated at the last minute to waive all application fees!
– They were fast…. We had already committed to a property and need action fast… and got it in Spades!
-If you want to try them … PM me and I will share their details.
Cheers
KiwiHi Guys,
I have done the same as above…..
The reason for the 76% share is the ruling in NZ that if any shareholder NON RESIDENT (NZ) owns more than 25%…. must pay income tax and do two lots of tax docs. (NZ and AUSSIE).
To get around this you simply make the biggest shareholder 76% (as long as they are NZ based) and in our case I have 1% and my Wife 24% sharehold. Then we made sure the trust clearly defines that the 76% shareholder relinquishes all stake in any income, investment, Shares or property share (current or future).I cleared this with my solicitor firts of course!!!
This all took less than 3 days to set up and cost $650.00 (NZ)We Obtained finance VIA one of the big NZ banks… and they were fine with the whole structure. WE must thank our great finance brokers in NZ for thier efforts though as one of our key team members they have made our investing in NZ a breeze.
Cheers
KiwiWrappee pays for it … plus interest !!!!f when they refinance to property into thier names. They will probably be charged anywhere between 12-16% interest.
Or …. If you do not havethe time …. then purchase off a bird- dog(Specialist in sourcing properties)…. just look for the decent ones though …. as there are plenty of sharks out there trying to take your hard earnt cash.
Education is paramount thought if you are wishing to get into this game …. an a lotta backbone and gus is required also…..
Don’t do what the 97% of the rest of the world and just learn and then sit on your hands …. you MUST TAKE SOME ACTION …. if you don’t you will never get the experience you need to sustain a successfull portfolio of property, shares, Managed funds and businesses….
Cheers
KiwiOriginally posted by MaiA:Hey all
In defense of Tokoroa, …
Also to be able to buy a home for much less dosh (compared to Auckland prices) is another major attraction.Cheers
MaiHi Mai…. only problem is that hte capital gain opportunities are not there as much as other opportunities out there.
Cheers.
KiwiHey There,
Yes it is a book (guide) by Dale Gatherum-Goss
I Found his other book “Tax battles” to be better for me as it not only went into trusts but also to minimise tax using the trusts to thier full capacity.We modelled our legal protection vehicle (Trust Instrument) via the Tax Battles Book.
http://www.propertybooks.com.au/dgg.htm
Cheers,
SWhEY Kosmic,
If you are searching for a 40-50% off trade for brand new …. send me a PM (in Sydney Only)
Cheers
Kiwi[baaa]Originally posted by vernon:Originally posted by Dr.X:Hi Vernon
can’t speak for kiwi (thanks Kiwi by the way for providing those examples). But I’m presuming that the option fee of %5000 and the weekly option payment of $145 is dedicted from the final purchase price of $295,000.So the tenant has %5000 + 156x$145 =$27,620 to credit towards the purchase price if they exercised their option at the end of 3 years.
Hope this helps
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582hi Dr X,
Thanks for the reply.
So can I assume that if the option is not exercised (and depending on the contract), the tenant would not get back any of this $27,620?
Hi Vernon,
You are correct this is because you have an asset tied up that you ….. and you alone have first opportunity to purchase.
So if you:
– break the contract by not making hte paments…. you lose.
– Make late payments – you can forfeit that months rent credit.
– don’t excercise the option to buy the house…. you get nothing back.However on the + side you have: (provided you abide by the contract terms)
– house price fixed for period of the agreement
– No increase in rent above normal CPI index
– Landlord cannot sell house to another party
– Landlord cannot put a sign out the front for sale.
– Build a track record for lenders to show you can make payments on time and for a sufficient period of time to convince them you are not a risk
– Build deposit as equity faster than ANY OTHER METHOD.I have offered an incentive from time to time that if the tennant pulls out they get a portion of thier rent credit back like 20% in year one, 40% in year 2, 60% in year 3, 80% in year 4 and 100% in year five….
However the strike price is around 60% higher and it is intended that the tennant is not to excercize in less than 4 years to allow for market growth……
Cheers
Kiwihey all,
This is the beauty of this tool…. you decide.I have “allowed” the upfront option fee to apply and to not apply… depends on the character of the tennant…. or how many applicants you get.
If times are tough and you ahve little to work with then yes…. if you hae applications falling out of your A@#e then you can decide and use it as leverage to get more of what you want… normal supply demand theory. Sort of like when K-Mart offers a great deal on “Roboraptors” (2005 toy of the year) and they market tne heck out of it… and only get 2 in per store… this provides a shortage and the frustrated buyers go and buy other things instead of just walking out…. yeah you get a percentage of people that will tell you to get stuffed…. but if you have 20 others saying thats fine…. then no problems.Whoops sorry back to hte point…
– Option fee is flexible
– Amount of rent credit is flexible
– even adding ealy paymnet terms to give an incentive ifpayment is paid in early …. also you can remove incentives as a penalty for late payments….It is really up to you…. put it together on the spot and then work outhte logistics of it all with your solicitor.
Flexibility is the key to win-win situations with the Good ole Lease Option instrument.
Cheers
KiwiYou could try this,
Put an offer in and ask that the vendor leave 15% in the deal (don’t go in low though ….otherwise it put the balance to far in your favour).
Once you get an offer that is accepted… approach a lender that accepts gifting and you have your deposit ready to go.
just an idea! see how you go.
Cheers
KiwiHey….. It is normally people that care about you and think they are doing you a favour by trying to protect you from something that baffles them. Normal behaviour I am afraid. Similar to “Tall Poppy Syndrome” – As soon as someone climbs up out of the rat race… they are promptly attacked by those that are jeolous and hard done by…..
We need to rise above all the mediocrity and stick to the game plan…. after all it is better to try and fail than to never try at all.
Cheers
Kiwi1. See if they have lied to you with thier verbal response to the Question “so how is your credit?”
2. also get them to sign a release of rental records from the last 12 months rental landlord.
You could always ditch your Neg ative geared property (cut your Losses) and start with another IP and build from thre.
You have 320K of accessable equity (80%LVR of PPOR-$130K outstanding)
This means you can secure over 2.5 Million of positive geared properties (one at a time)if you had 9 properties cashflowing $30each NETT…. you would not have to pay 1 cent out of our pocket to pay for your PPOR…
Sound like a good plan to me :o)
Hey,
Sounds like the question may be do you want capital gain (profits- commonly know as gambling on the market rising)…. or do you want to get cash in your back pocket today. If you want CG then you wil be able to quickly find the tools to see which areas are growing fastest and you can see whether your suburb is a good risk or are there beter ones out there.If you are looking for the second, then you can also use tools to source and secure your deals…. I was reading an article the other day written by one of the most respected professors in the NZ property sector and the comment was … along the lines of …. how is it most investors do so in thier own neighbourhood when the risks are lower in other areas with the same return on investment…..
Cheers,
KiwiHi Yasmina,
Just ot clarify…. do you want to be dept free…. or have the debt pay for itself and give you some freedom of choice?There is good debt and bad debt…. IP is good debt (as long as you are not paying for it out of your pocket) PPOR is not so good debt …. but consumer debt is BAD debt.
How long ago did you purchase the IP? what is its value now?
Thanks
KiwiHi Yasmina,
Some more info is needed to try to assist you with some creative thought.
1. Regarding your mid to long term goal…. did you want to be debt free? or not relying on your job to pay for it?
2. Is your investment prop cashflow positive or just positively geared (gives you cash after tax considerations).
Without info on your loans, terms and interest rates (INT ONLY or P&I) is it hard to work any possible scenarios for you.
however…. I will makes some guess work and see how we go.
PPOR 130K @7.5% over 30 years = $210.00/week
INV 190K @ 7.5 Int Only = $274/week
Approx ave rent based on 5% yeild = $200/week
rates and insurance approx = $50.00/week
repairs and Maintenance (5% of rental return = 10.50/wk
Letting fees (Based on 7% REA fees)=$14.00/wkTotal rental nett (income – outgoings)
return is approx -$148.50/week (out of your pocket)
Add in the fact that you also have to add to that the cost of your PPOR per week you seem to hav a sum of: -$358.50/week going out of your pocket.
That is almost a full time job just to pay for your housing related costs… then you have to eat and drive and live :o)I have not even calcualted the added costs of insurance, repairs and rates on your PPOR so it is actually more than that.
Would this be close to the mark?
I could be way off here … especially if you have a 10.4% (minimum) yeild on your IP that would take care of he $148.50/week and put you in a better position.There are plenty of solutions to your challeges it is just we need to know where your goals and aspirations lie and what skills you have to utilise all the tools of the property trade (So to Speak).
Look forward to some more information so a we can add our thoughts and possible scenarios.
Cheers
KiwiThanks Guys!
Good luck with your investments!
Cheers
Kiwi [baaa]
