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  1. #61
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    Thanks for all your replies . Much apreciated. Hope your year is a good one.

  2. #62
    Senior Member Valuegrowth's Avatar
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    Both have risk and returns. Intelligent investors know how to pick great winning stocks and property before the major cycle. Buying property at the wrong time could end up with becoming bankrupt. Only experienced investors and traders will have edge over others in both types of investments. Some are good at stocks and some are good at property.

  3. #63
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    I heard from a mate today,that some people are buying homes and then renting them back to themselves.
    Is this even possible?

  4. #64
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    Quote Originally Posted by beetills View Post
    I heard from a mate today,that some people are buying homes and then renting them back to themselves.
    Is this even possible?

    Certainly, quite common with trusts and companies owning houses. And with family buying and renting to other family - also common. In those cases, the tenant can effectively be the owner as the property will eventually pass by sale, gift or inheritance. Not exactly what your question was, but more likely than personal ownership renting to the owner.

    There are tax implications. If expenses are claimed against rent, IRD require market rent to be either paid or deemed to be paid. If that doesn't happen, IRD will consider it tax evasion.

    I rent a property to family, and make sure the rent is within the range on the Tenancy Services site market rent page.

  5. #65
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    Quote Originally Posted by beetills View Post
    I heard from a mate today,that some people are buying homes and then renting them back to themselves.
    Is this even possible?
    If you do this from the outset, I would say this is tax avoidance, even if you use a company/trust. Is there any other reason than to avoid tax?

    To family members is different, especially extended family members (just ensure it is a market rent), or if situations change and you move into property (but if it is long term, you should really do a change of use from 'business' to 'personal').

    Basically it screams tax avoidance unless you have a good reason. The IRD will probably shot first, ask questions later if they became aware of it.

  6. #66
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    Quote Originally Posted by artemis View Post
    Certainly, quite common with trusts and companies owning houses. And with family buying and renting to other family - also common. In those cases, the tenant can effectively be the owner as the property will eventually pass by sale, gift or inheritance. Not exactly what your question was, but more likely than personal ownership renting to the owner.

    There are tax implications. If expenses are claimed against rent, IRD require market rent to be either paid or deemed to be paid. If that doesn't happen, IRD will consider it tax evasion.

    I rent a property to family, and make sure the rent is within the range on the Tenancy Services site market rent page.
    If the property is run at a loss it is not likely to create a deducible loss unless you can come up with a damn good reason for the structure. Any scheme with no other purpose than avoiding tax is not recognised by IRD. Otherwise we would all move out and swap with our neighbours.

  7. #67
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    Quote Originally Posted by beetills View Post
    I heard from a mate today,that some people are buying homes and then renting them back to themselves.
    Is this even possible?
    It is possible but you might want to check this page first
    http://www.ird.govt.nz/property/
    http://www.ird.govt.nz/resources/1/8...5ab7/ir361.pdf
    The second link is hopefully to an IR361 booklet check out page 17.
    It might pay to talk to an accountant before you do this as it will most likely be considered tax avoidance.

  8. #68
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    Hey guys...I say again..check out..the differences between wealth ..and money...just saying.,.

  9. #69
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    Something I have come across recently is something call "Mark to Market accounting". It works well in the derivative world but apparently gets applied to banks with assets and liabilities reviews every quarter . If the house prices ever crashed in NZ does anyone know if this would get invoked and cause foreclosures like what happened in the states?

  10. #70
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    Not so long as individual mortgagors continue to meet their repayments. Foreclosure is usually a bank's last resort to secure repayment - in whole or part - and mortgagee sales would act to further depress house prices. Market to market accounting requires "live" market prices for the securities being valued.
    Last edited by macduffy; 17-12-2017 at 04:42 PM.

  11. #71
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    Ok ..property or shares....you can have both....who can name the most profitable property company listed over the last 2 decades.
    Last edited by troyvdh; 10-06-2018 at 12:39 AM.

  12. #72
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    Ryman Healthcare?

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