[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 14, 2003 - 9:26 pm

Thanks mini,

it’s clarkr at powertel dot com dot au

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 13, 2003 - 11:57 am

I’m with westan on this one. Interest rates are used as a tool to control inflation and to restrain out of control (booming) economies.
We’re still in a low inflation environment at the moment and the international economy isn’t exactly booming so I wouldn’t expect any dramatic rises in the immediate future.
However they will inevitably rise at some time.
I remember being very pleased with the discount rate of 14.1% we got when we bought our first house.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 13, 2003 - 2:18 am

Well you’re entitled to vacant possession and you’re entitled to receive market rent.
It’s up to you to enforce it.
Get a property manager to draw up a lease and get it signed prior to the settlement date. If the vendor won’t agree to pay market rent then insist on vacant possession. Talk to your solicitor.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 11, 2003 - 9:57 pm

Is Property Secrets available at the moment? I just get a blank page when I click on it from the resources link.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 10, 2003 - 10:45 pm

I’m not an accountant either, but I’m pretty sure Terry’s right.

If you don’t distribute the funds then the trust will be taxed at the max rate. If you do distribute then the company will be taxed at the company rate. Either way they will be taxed somewhere.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 10, 2003 - 10:22 pm

Wow, I can’t believe the traffic here from you guys over the last couple of days.

Diamond, you asked about why a NZ trust. The feedback I’m getting from brokers over there is that it’s much easier to borrow in either individual names or in the names of a NZ entity. As my existing Aussie trust has am Australian company as trustee I can’t easily use it. I’m now trying to decide whether to go ahead and set up the NZ trust structure (about $1500NZD) or just buy in joint names.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 8, 2003 - 4:55 am

4 at the moment, hopefully some more soon.

But only if the numbers work.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 7, 2003 - 11:11 pm

Diamond,

Good on you. I’m still working on my short list of towns! I’ve been busy researching the ins and outs of setting up a trust in NZ.

I suspect I’ll be over there at a different time to the rest of you but I might try to catch up with muppet. If that’s ok with you muppet?

Westan,

I’d like to catch up with you before you go if possible. You’ve got my email address.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 7, 2003 - 10:42 pm

Andrew,

thanks for another great inspiring post.

In many ways your posts are more relevant to many of us here as you are still doing things that we can relate to. Whereas often Steve seems to have already moved to a higher plane (bulk finance etc.).

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 7, 2003 - 4:41 am

crashy, you certainly make some valid points, but did you really need a second thread on essentially the same topic?

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 6, 2003 - 11:14 pm

Interesting read, I was also surprised at the low percentage of wraps. Steve seems to push the wrap side of things more in his posts here. Maybe the wraps are just to provide the cashflow to finance deposits for the buy and holds which are the real “wealth builders”?

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 6, 2003 - 5:34 am

Barbara,

Talk to a good mortgage broker. Also be aware of the costs – refer to the “Interest Only Loans” topic.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 6, 2003 - 5:32 am

Stu,

You’re right some of the ongoing fees with LOC’s can be expensive. (I think CBA’s are $12 per month!).

Westpac’s seems alright. I’ve got a mix of LOC’s and basic/offset loans and pay the same interest rate on all of them with one annual fee ($300) on their professional package.

I’ll be interested in seeing your article.

Amit,

Davo70’s done a good job of describing the LOC – a big credit card secured against property. And just like a credit card they can be very dangerous. I agree with Davo70, I like the flexibility for investment purposes, but if I was paying off a PPOR as well (which I’m not) a 100% offset loan would probably be a better bet.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 6, 2003 - 1:25 am

Westan,

I haven’t booked yet, but I’ll probably organize it so that I’m not away during the Vic school holidays. I’ll let you know.

Mini,

Do you have a recommendation for an accountant in that part of NZ?

thanks,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 6, 2003 - 1:07 am

Hi D,

You’ve made valid points. Personally my LOC is completely seperate from personal funds and any withdrawals from it are only used for investment purposes- thus keeping the interest tax deductible.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 5, 2003 - 11:17 am

Well done Westan,

I’ve got a way to go to catch you – both in posts and properties.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 5, 2003 - 11:05 am

I’d suggest LOC, it gives you the best of both worlds.

With most LOC you have the option of only paying the interest or paying down principal if you wish.
Which can easily be redrawn if required.

Some of the straight IO loans have limitations on the amount of principal repayments that can be made per year.

The main downside with a LOC however is that you usually can’t fix the interest rate.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 5, 2003 - 4:33 am

QB,

Interesting article, thanks for posting it. As you quite rightly point out, NZ is no different from Australia or anywhere else – you must do your research.

Have you seen this article on Tasmania?

http://www.news.com.au/common/story_page/0,4057,6867927%255E26462,00.html

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 4, 2003 - 11:36 pm

Westan,

When are you going? I may have to go a week before you otherwise you’ll get all the good properties. []

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

August 4, 2003 - 11:32 pm

Steve,

There’s been quite a few NZ links posted in some of the recent NZ threads. Do a search, you’ll probably find what you’re after.

Rod.