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I’m not entirely sure whether duty is paid in New Zealand. I’m not sure what implications there would be in transferring the property. This is something I’ll have to have a chat to my accountant about. If any NZ forum members have any comments, that’d be helpful.
Thanks for your help Tony.
If anyone else has any thoughts or suggestions about our situation, we’d love to hear.
My fiancee's parents will only be paying for the property until we get married. Once we get married, we'll be transferring the property from THEIR family trust into OUR company. We will then be paying any negative cashflow, but will also benefit from any eventual positive cashflow and capital gains.
If we lived in the apartment, we'd be up for approximately $560/wk (as outlined in my first message). Is this wasted money? What benefits are there to owner occupying vs. renting? While I don't LIKE the idea of paying someone else rent, if it's going to get us ahead, then we'll do it.
Living IN the apartment would allow us to renovate the apartment which could result in an increase in rent so there is definitely a bonus here (as well as the security of living in our own place and not having to pay someone else rent). However, if renting would get us ahead quicker, then we are open to this.
As a note – we're in a great position of being young and willing to sacrifice anything we need to to get ahead. While we'd love to live in our own apartment, if we need to rent in order to get ahead, then we will.
Thanks for the message Tony.
The property is currently being looked after by my fiancee's family trust. Her parents used a property manager who they use on another apartment of theirs. This property manager has been terrible and listed the property at $300/wk. I was really unhappy with this, but as it is currently looked after by my fiancee's parents (they are paying the negative cashflow), I am not yet in a position to comment. Utilising data from the New Zealand Department of Housing on Market Rents, it shows that we should be getting a minimum of $350 (based on real rents in the area).
What are the benefits of not owner occupying? If we had the apartment rented out at $350 per week, we would still need to pay a difference of say $210. Based on our requirements, I can't see us finding a place to rent for less than $350, so I can't see how renting would help us. However, we're really looking for the best way forward so we're very open to renting if that will get us ahead.
If we could find a place to rent at $300/wk and rented the apartment out at $350/wk, then I take it that would be a good option?
Appreciate any further advice.
