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  1. #41
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    If you are wanting a train from Auckland to Hamilton, I would imagine it would need new lines. For it to be a goer, I think it would have to be a pretty fast train around 200 kph, something in the region of 30-40 minutes.

    It would be awesome for Hamilton and I'm pretty sure that Hamilton would do quite well out of it with businesses considering being based in Hamilton. However, given all of the half arsed kiwi infrastructure projects that have been done over the last 100 years, I don't see this anywhere on the horizon.

  2. #42
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    Quote Originally Posted by Harvey Specter View Post
    Its not the Tax System!!! Its the banking system which allows for much lower interest rates for property.

    I have debt secured over shares and it is treated exactly the same as debt secured over property, the only difference is the interest rate is 1.2% higher and the loan to value is much lower (and not even allowed on some shares).
    That's true. The capital that banks are required to hold in respect of their loans for property is much lower than that required for loans for "riskier" purposes. Makes sense - except perhaps when property bubbles develop!


  3. #43
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    Quote Originally Posted by Nasi Goreng View Post
    If you are wanting a train from Auckland to Hamilton, I would imagine it would need new lines. For it to be a goer, I think it would have to be a pretty fast train around 200 kph, something in the region of 30-40 minutes.

    It would be awesome for Hamilton and I'm pretty sure that Hamilton would do quite well out of it with businesses considering being based in Hamilton. However, given all of the half arsed kiwi infrastructure projects that have been done over the last 100 years, I don't see this anywhere on the horizon.
    The current government does seem to be reactive rather than proactive. However given current immigration / upper North Island pop growth demand for housing and transport will grow and perhaps at some stage there could be a private public partnership to provide a modern rail service Ham-Auck. May an IFT-Super-Govt partnership...

  4. #44
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    Quote Originally Posted by Harvey Specter View Post
    Why are you allocating your debt against propety? Just because thats what it is secured over?

    Consider it different way.

    My guess is you are probably overweight in Property yet your returns on an EBITDA basis are probably alot lower.

    You have property worth $X, and shares worth $Y. Deduct from that portfolio debt of $Z (which just happens to be secured over property to give you a low interest rate).

    You could argue the counterfactual that without the property, you wouldn't be able to get debt, which is a far comment. Always compare like for like, while being mindful of the benefits of each.
    Absolutely fair comment and well worth me including in my tracking.

    So even if I subtract my current WACC (5.21%), the returns are still good 10% to 15% with the 10% being my NZ portfolio (which has a LVR of 35%). And yes, I am well overweight in property, running an overall share portfolio of between 5 and 10% of the property (excluding our Kiwisaver untouchable). The problem for me is, I have no "professional" financial/investment training (but have been investing for more than 20 yrs) and am working totally solo due to location and situation. The time I need to put into the shares is very very high as I need to ensure that my overall return is better than the mortgage rate (I don't include capital gains for properties). The shares give me international reach and better liquidity. When the portfolio gets larger I sell and reduce debt. So far the process has been working and I don't feel confident enough to put more money into shares - someone can live in a house when everything goes wrong but when a share goes "belly-up" it merely goes to a $0 value (Aero Inventory case in-point as one of my early zeros due to accounting fraud!).

  5. #45
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    Quote Originally Posted by Nasi Goreng View Post
    If you are wanting a train from Auckland to Hamilton, I would imagine it would need new lines. For it to be a goer, I think it would have to be a pretty fast train around 200 kph, something in the region of 30-40 minutes.

    It would be awesome for Hamilton and I'm pretty sure that Hamilton would do quite well out of it with businesses considering being based in Hamilton. However, given all of the half arsed kiwi infrastructure projects that have been done over the last 100 years, I don't see this anywhere on the horizon.
    I used to take the train from Kyoto to Osaka (japan) it was nowhere near that fast --took about an hour---If you were starting from scratch though you would want an express and local--if you live at one of the less used stations you simply get off the express at the nearest big station and transfer to the local for your stop----1 hr would be perfectly acceptable from Hamilton to AK and back(while you read the paper or do your computer work)

  6. #46
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    In today's Herald - What offers higher returns for less work, but has trouble winning Kiwi investors over? You guessed it ...

    Worth a read. A fairly even handed article by Mark Lister, and pretty much once over lightly, though in the end he has a bob each way. One thing not covered is that many people are more familiar with property than with annual accounts and the sharemarket. There is a natural inclination to stick with what you know. And again, having some else pay for part of your asset (tenants) is usually rather more attractive than paying it yourself.


    "Some property people will never touch shares. Likewise, some share investors see property as too much hard work for relatively modest rewards. The NZX50 gross dividend yield of 6.5 per cent from shares certainly stacks up well against rental yields. Shares and property have many fundamental value drivers in common, but they are also very different. I'm not sure there is a clear winner. I also suspect the more astute investors don't waste their time having this debate, but rather acknowledge the pros and cons of each, and simply own both.

  7. #47
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    Agree, good article. What makes the difference with property is the ability as mentioned to leverage easily which increases further returns in a rising market.

  8. #48
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    Just recieved a letter from MSF(MUTUAL SUPER FUND) to say that they are winding up the scheme effective 31/1/16.
    So ends my foray into commercial building investment which was preceded by the ending of my farming investment when NZ Farming Systems Uruguay were taken over.What's next?

  9. #49
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    Quote Originally Posted by beetills View Post
    Just recieved a letter from MSF(MUTUAL SUPER FUND) to say that they are winding up the scheme effective 31/1/16.
    So ends my foray into commercial building investment which was preceded by the ending of my farming investment when NZ Farming Systems Uruguay were taken over.What's next?
    There's still the Listed Property Trusts if you like commercial and industrial property.

  10. #50
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    Quote Originally Posted by fungus pudding View Post
    There's still the Listed Property Trusts if you like commercial and industrial property.
    Or the listed retirement village (property) companies. Or AIA (airport/commercial property).
    Last edited by macduffy; 29-01-2016 at 03:32 PM.

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