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  1. J

    Auckland higher deposits required

    New Zealand also has differing deposit requirements and length of loan term for commercial property and some non-mainstream residential lending. The interesting difference about these restrictions are that they are being imposed on the commercial banks by the Reserve Bank, and not from the...
  2. J

    Auckland higher deposits required

    The New Zealand Reserve Bank announced yesterday that investors buying properties in Auckland city will require a 30% deposit if a mortgage is wanted from a commercial bank (eg ANZ, Westpac etc). A 20% deposit was introduced last year nationwide. This is scheduled to apply from October this...
  3. J

    disclosing address as self-managing landlord

    I have been managing my own rentals for over 30 years and as a policy do not use my residential or business address on the tenancy agreement or any correspondence. I use my law firm as business address for service. They just pass on unopened any mail or hand served notices received. They...
  4. J

    Beware of the ‘fallacy of composition’

    N Z Experience The current New Zealand experience is that even without a rush to the exits selling down is becoming very hard. Monthly sales volumes are around half of last years numbers country wide. Prices are holding up much better than volumes to date. I know of investors with...
  5. J

    Accountant advised not to claim as rental

    Risk Reduction While the tax implications are beyond me as an outsider, I feel it could be a good risk reduction option for the parents to use their funds to invest in the new home thereby lowering the mortgage needed and interest payments. The much more comfortable LVR could give later...
  6. J

    50 Year Lease Anyone?

    Your circumstances will often determine where you see value. Homebuyers can often buy sooner (with a lower deposit) and in a better area. In some areas in a city you may have no choice, a whole suburb may be leasehold. Although you could say that the holder of a leasehold interest is...
  7. J

    50 Year Lease Anyone?

    To give a less extreme example. Two similar houses in one street. One is freehold Value 300K made up of 150k land and 150K improvements (house, garage, fences etc) One is leasehold Leasehold interest in the land and improvements say 160k Freehold interest in the land say 140K...
  8. J

    50 Year Lease Anyone?

    This is known in some countries as a Glasgow lease. This type of lease normally is for a term or 999 years with 21 year rights of renewal. Rent reviews were commonly at the 21 year renewals, but since inflation became a big factor of economic life many now have 7 year rent reviews. The owner...
  9. J

    What age are you now?

    Age 51, 18 rentals
  10. J

    Mortgage Meltdown ABC 4 Corners Monday night

    [QUOTE=aussierogue; And the graph - wow how long did the professor take to find this little gem of a scandanavian town - and why? Why not use London, or Hamburg or anywhere else that may have less variables (bigger sample). The fact that the town is obscure makes me suspiscious. Plot Ballarat...
  11. J

    Traders should shorten their time horizons.....

    There are many things that could go wrong with our world. Economics is but one. I believe the older you get and the more you have experienced, the more you look for insurance in whatever form to lock in the gains you have made in life. It is not being negative, and no reason not to keep...
  12. J

    Traders should shorten their time horizons.....

    Hi Ausprop, I guess the point of reading views contrary to your own to become aware of risk you did not realise existed. Your impression is that since the 1970’s business has just rolled on and “these theories (depression, crash etc?) have been around” since then. What has also happened in...
  13. J

    Traders should shorten their time horizons.....

    I attempt to insure also. Trying to protect my property portfolio from major economic downturns or other events, I have paid a price that I think of as insurance by spreading my portfolio over many unrelated entities. All debt is carried in as few of these as possible. The idea is to prevent...
  14. J

    Consumer Alert: USB memory sticks

    Wow, what can I say!! A picture is worth a thousand words. Hope you can get a refund?
  15. J

    Rich Smart & Isolated: Meet the New Aristocrats

    Interesting comments Alex, almost as if we read different books.
  16. J

    Rich Smart & Isolated: Meet the New Aristocrats

    Sorry wrong ISBN -- should be 0 7322 6753 6 for "The Millionaire Next Door". (The other number is for a follow up book the Millionaire Mind which I am rereading now more detail but not as readable)
  17. J

    Rich Smart & Isolated: Meet the New Aristocrats

    An interesting account of wealth v's income is the book "The Millionaire Next Door" by Stanley & Danko. (1996?) While this is a USA produced book the information is concerned with real people and comes from 20 years of research. If wealth building is of interest and you have not come across...
  18. J

    Investors Direct Seminar

    I saw Bill speak a couple of years ago and was impressed. You can gain in many ways from attending events. You can learn from the presenter You can network and make new contacts You can come away motivated by either the presenter, the information or others you have met, and take...
  19. J

    How well-informed were you before entering market?

    I did not know as much as I do now, after twenty five years plus as a full time investor. In some ways that was a plus because if you know the things that can go wrong sometimes you won't make a start. Learning is of great benefit, but investing cannot mastered from books any more than you...
  20. J

    Sold the wrong property by mistake

    Just the way my mind works, but I would immediatly insure the house that she actually (now) owns, as well as the one she thought she owned. As least until all this is sorted out. Worst case at the moment, the house your friend really owns is distroyed (say by fire) she has no insurance cover...
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