Total Members: 150,049

Steven

  • In NZ, they are changing the phrase such as “rent freeze” or “mortgage holiday”, because those terms are being grossed mis-understood. Both of those terms created a great deal of confusions and as such, they are using different terms that have better clarity and more transparent.

    eg 1:, NZ government is now using the term “rent increase freeze”…[Read more]

  • If you want to make an offer for a house that will be auctioned, then my suggestion is:

    1. Express your desire to make offer early. It is probably a bit too late now.

    2. Try to negotiate if you can make conditional offers, so you have time to do due diligence during conditional period.

    3. If you are only allowed to make unconditional offer…[Read more]

  • Actually, I do both BTL or flip depending on where I look into.

    Definitely agree with “make the money in the buy” rather than “buy and hope value will increase 10% the next year”. The idea of buying below market value and add value is also to give myself buffer. This “buffer” also serves as “extra leverage”, so if market value increases by 10%…[Read more]

  • Just had a call with my mentor and thought I’d share what I have been taught. His wisdom definitely helped me to clear my head.

    Comments are welcome.

    I asked my mentor 2 questions: 1) closure of smelter in Invercargill (which is in New Zealand) and 2) potential impact of global economy. How those 2 events may affect property values and is it now…[Read more]

  • Steven replied to the topic Advice newbie ? in the forum Help Needed! 6 months, 3 weeks ago

    1. Decide strategy first.

    2. Find areas that will suit your strategy.

    3. Find the property in the said area.

    Most people do it the other way around, and get stuck after buying 1 or 2.

  • Keep your cool.

    Last thing you want is getting overly excited because agents are saying “everybody else is rushing in and bidding at $X higher than expected selling price at an auction”.

    As far as I am concerned, whether the market is going up or down. If the number makes sense, then buy… otherwise don’t.

  • Steven replied to the topic Question about refinance in the forum Finance 9 months, 2 weeks ago

    Even if Property 1 is a rental IP to start with, I still can’t deduct interest against it?

    Or are you saying you can’t even use that as a deduction against next investment (property 2?) as well?

    Isn’t that kind of unfair for people who couldn’t apply for a loan in a point of time? Say you get a real good bargain deal but you can’t apply for a…[Read more]

  • If you buy property 1, but you are unable to obtain a loan at that point of time, but you are able to refiance for a loan at a later date.

    In this case, can you still write off the interest for that loan as the cost of property 1? Or is it only allowed to be written off as cost of property 2?

    Let’s use an example:

    Let’s say I buy property 1 at…[Read more]

  • If you buy property 1, but you are unable to obtain a loan at that point of time, but you are able to refiance for a loan at a later date.

    In this case, can you still write off the interest for that loan as the cost of property 1? Or is it only allowed to be written off as cost of property 2?

    Let’s use an example:

    Let’s say I buy property 1 at…[Read more]

  • Technically buying a new house is not “adding” to the number of homes available.

    If I knock down a house and build 2 units then I am adding up the numbers. Or if I buy a block of empty land and start building new housings, then I am adding up the numbers.

    If all I do is buying 1, then I am not adding any more houses (new or old), because I…[Read more]

  • I still don’t quite see how “new” is defined… if I buy something that is “new” (not that I will do anyway), does it stay “new until I sell it”? Or does it stay “new for X years” and then becomes “not new” whether I sell or not?

  • This is precisely the reason I believe treating property investment “not as a business” is a very bad idea.

    Speak of which, they are trying to introduce something similar in NZ too. They call it “ring fencing” over there.

  • I would say this sounds like it would have a more negative impact against individual speculators rather than investors.

    Unless they propose negative gearing cannot be used to offset the investor’s own investment portfolio, in which case that will probably kill off the invest altogether and cause some very serious consequences to the economy…

  • Long story short…

    Does that mean interest charged by banks on loans are no longer considered as a cost if this new rule is passed? So if someone’s rental income is 2000 per month and that person needs to be 2500 interest to the bank, then that person is considered to be making a 2000 profit per month (and gets taxed on that 2000) rather than a…[Read more]

  • And why is that?

    I am not doing any buying, renovating and selling. None of those items are performed under my name. Instead the corp trustee acting on behalf of the Trust is doing all of that.

    The properties are purchased under the trustee, renovated by the trustee and eventually sold by the trustee.

    Yes, I am the settlor of the trust and…[Read more]

  • Hi Ben

    Yes, that’s what I always thought in the past… until I read the post stating “any transfer is considered to be illegal if not having a credit license”…

  • The corp trustee is the borrower.

    Reason for considering to transfer to me first and than having me to transfer to the corp trustee is more from an ease of management point of view.

    My parents are old folks and it is a hassle for them to transfer money to overseas. For example, ANZ now days no longer does overseas transfer across the counter…[Read more]

  • You are right. I didn’t quite understand it.

    When you said “If he is lending to you as agent or trustee of the trust you are an individual.” I read it as “If he is lending to you and he is working as an agent or trustee of the trust you are an individual.”

    Now that I think of it, it appears you actually tried to say “If he is lending to you…[Read more]

  • Nah, not like that. He is not part of my trust or member of my trustee.

    Trust is like this:
    Me as the settlor
    Me as director and shareholder of the trustee
    Me and my son are beneficiary

    My parents are not covered in any scope as far as my trust is concerned.

    My question is more in this regard:

    1. If he sends money from his account directly…[Read more]

  • My dad is in Australia… I am in Australia, but my corp trustee is overseas.

  • Load More

Steven

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