Listed Property Trusts

[voltage]

i am sure all the negatives have been built into their price, do you think is it time to start buying again?

[Billy Boy]

i am sure all the negatives have been built into their price, do you think is it time to start buying again?

When to buy or sell is entirely up to you.
I personally feel the prices have been built in buy now. Having said that, be
aware of the likely hood of this double recession issue. It has been warned
about now for six months or more and appears to be happening.
Billy Smurff has not finished yet, and has said so. (Interest.co.nz one on one).
Residential Property, I think, will continue to slide in value. A land tax in this area (with conditions)
seams likely. Property held for speculative reasons with get murdered once again.
Stand alone houses for rent will drop off and be replaced by Flatting Blocks
or Complexes because of bad tennants and the cost of land, etc. These buildings are
considered "Comercial" now. House Leasing could become the norm for those who can afford.
I am of the opinion that Commercial Property has been clobbered enough. Should
the gumment have another go then cost would be passed on as they are going
to be now,..... Not good!
Next sector in the LPT portfolio !!! " Flatting complexes"
cheers BB

[Billy Boy]

Depreciation laws being revisited by Peter Dunn
This could have an interesting result(s)....
I had a chuckel at this one....
"if you Lease a building, the L/Lord cannot claim depreciation on the carpet,
Chairs, Drapes, Lifts, etc....
But
"if you lease a bus, the leasor can claim on the whole damb sh-bang"
cheers BB

[CJ]

"if you Lease a building, the L/Lord cannot claim depreciation on the carpet,Chairs, Drapes, Lifts, etc....

All those will be appreciable under the proposed standard for commercial buildings. (to the extent they are owned by the landlord, it will normally be the tenant that owns the carpet, chairs, drapes so they will claim the depn).

These rules appear to be taxpayer friendly for commerical building owners after the recent spat of taxpayer unfriendly changes in relation to buildings.

[Billy Boy]

[QUOTE=CJ;315163] it will normally be the tenant that owns the carpet, chairs, drapes so they will claim the depn).

Not always I am told.....
and thats where there are some hiccups.
I wish I could find that bloody link 4u... maybe someone else can get it.
cheers BB

[CJ]

[QUOTE=Billy Boy;315175]

it will normally be the tenant that owns the carpet, chairs, drapes so they will claim the depn).

Not always I am told.....
and thats where there are some hiccups.

According to this, no hiccups for commercial buildings:

http://taxpolicy.ird.govt.nz/news/20...n-issues-paper

[RRR]

As the OCR creep up, LPTs will be less and less attractive. All LPTs are leveraged and I assume their interest costs will only rise and thus reducing profits(and dividends). Recent tax changes will only add to the misery. I will be a cautious buyer and will add only if the price drops significantly from the current levels. I am surprised that the share prices are still holding up!!

[Omega]

As the OCR creep up, LPTs will be less and less attractive. All LPTs are leveraged and I assume their interest costs will only rise and thus reducing profits(and dividends). Recent tax changes will only add to the misery. I will be a cautious buyer and will add only if the price drops significantly from the current levels. I am surprised that the share prices are still holding up!!

LPT's have a significant portion of debt covered by swaps and therefore changes to the OCR have minimial impact on earnings. Yesterday's annoucement on fit-out depn is good news and they will still retain circa 60-65% of their total depn allowance from 1 April 2011. FY2011 yields are 8-11% TAX PAID - the depn and tax changes for FY2012 will drop the yields by 1% to 7-10% TAX PAID, which is a helluva lot better than many other sectors. And if you're game, borrowing 50% against your shares increases your yield by 50%!

[voltage]

most have dropped 30% this year, surely this must be the bottom, where to from here??

[RRR]

Good point Omega. The situation i am in is different to yours. You are using margin but i am using my home equity(revolving credit). Current interest rate is 6.25% and for me to invest in companies for dividends my dividend return has to be above 10%(they currently are but is going to come down) and i cant claim any money back. Hence OCR will affect my investing decisions. I will sit in the sidelines for now. Percy talked me out of using revolving credit.

Voltage-your guess is as good as mine. Good luck if you are investing.