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  1. #111
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    Renters suffer as owners get smug

    http://www.smh.com.au/articles/2007/...105052409.html



    Crusaders: Super 14 Champions 2008

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  2. #112
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    quote:Originally posted by Heavy Metal
    Wow - endless wealth using other peoples money. A dream come true. This seems priceless information - why don't you start a company that runs WRAP seminars and charge $1000 a pop?
    Heavy Metal.
    check out the wealthiest people/businesses throughout history, they have ALL used other peoples money to gain wealth, it is niether a dream, nor unusual.
    There are already gazillions of seminars around, most are designed to get YOUR! money. And $1000 bucks a pop cheap. You can go spend a week in Aust or USA at a bootcamp for $10grand plus if you want.
    I am quite happy to have proved that "TRUE" WRAPS work and willing to pass on what I have learned FREE! I spent approx 18 months and $15,000 putting the paperwork together, the most important part. I will be happy to accept $100 for the paperwork.
    I am not doing this for money. I get a kick out of helping someone succeed!
    Unfortunately it does not matter haw successful any plan is there will always be the greedy who set out to rip someone off. Thats why NZ banks will have nothing to do with "rent to buy" schemes. Most are a rip off designed to fail so the vendor makes a killing from hopeful purchaser, reclaims the house and "sells" to another sucker.
    Every single WRAP deal I set up will qualify for a conventional bank loan within 3 years as promised! The buyer gets a chance to own their home, the bank gets paid, I do OK, the guy I bought the house from is happy... eeezy peezy.
    Would you believe every house I bought to resell the Govt gave me 12.5% back as a FREE nontaxable loan, that I invested at 9.5%. (yes the gst!) Work it out, for every 8 houses I bought the IRD GAVE! me one to sell, all legal!
    JK




  3. #113
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    quote:Originally posted by broke

    quote:Originally posted by JoeKing
    Would you believe every house I bought to resell the Govt gave me 12.5% back as a FREE nontaxable loan, that I invested at 9.5%. (yes the gst!) Work it out, for every 8 houses I bought the IRD GAVE! me one to sell, all legal!
    JK
    Do you pay GST back on the resell?
    All gst gets paid back at the end. When selling a farm for instance it is sold plus GST if any. The buyer simply takes over your commitment to pay it back. They pay it and get it back in other words. I registered my home property eight acres plus a house. It is only the land other than the bit round the house that you can claim. That part is subject to capital gains, plus the business that is derived there off. On the credit side, i got at that time $16000 in the hand plus all the gst back on rates and expences tractors mowers etc. When i sell it will be plus gst if any. The land must be part of a business. Example Trees, orchard, builders yard etc. macdunk

  4. #114
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    MacDunk
    Sure you did not buy a lemonor two
    Running with the Bulls!!
    Go with the flow
    slimbo

  5. #115
    Advanced Member trackers's Avatar
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    quote:Originally posted by Bel

    I'm going to try hard not to be offensive but i've read so many of these misleading statements.
    You say youve made 70K in paper profits but why do you count interest payments, real estate agent fee, insurance, inflation, bank fees, maintenance and rates as being irrelevant?

    Owning your own home is awesome and i envy you for that, but thats what it is, your home. Not the be all end all investment. (IMHO)
    No, I never said I'd come out with $70,000 profit, thats the cash increase in house value I'd come out with. Never said it was the be all and end all... My figures were rough, and the general idea of it all was to illustrate how I was in a similar position, and how if you think it is bad now, consider that it could get worse... If it came across as a 'look at me, look at me' or some smug post that wasn't my intention.

    The real figures?

    Bought $235,000
    QV from 5 months ago $290,000
    Deposit $20,000

    Mortgage $215,000 @ 7.65%

    Rent Saved: $240 * 52 = $12,480
    Interest Paid: $16,447 + $1,000 rates = $17,445
    'Real' Cost over flatting: $4965

    So, $65,000 less ~$5000 interest/rates less $6000 Real Estate Agent fees less Lawyer fees both ways ~$3000 Less Maintenance/Improvements $3000 = $48,000 profit.

    The actual dollar amount as I've paid most of the money in normal day to day expenses would be $65,000 + $20,000 deposit less $6000 R.E Agent Less $1500 Lawyer so $77,500

  6. #116
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    quote:Originally posted by broke
    Do you pay GST back on the resell?
    Of course, and on profit, lets not be greedy. I do get to keep 2/3rds of the profit from sale of "free" house. (less GST) [8D]

  7. #117
    Guru Crypto Crude's Avatar
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    good question Broke......
    also adding to that... JK, and why did you only invest 40K of it into shares?... (if u mind me asking)
    Mackdunk, taken from your 14 step guide to property #13: the property market runs in cycles which are easier to predict than the share market, use this to your advantage
    ....I would like to also know what you think house prices will do over the next two years??
    seeing that im sitting out for a further two years and all

    as you mention in your 14 step program...Paint paper, simple plumbing, carpentry jobs, doing up one room at a time, gardening... how many hundreds of hours am I looking at?
    if you look at it from the point that if you were a working man, and you just picked up extra hours at work then some of the profits are lost in countless hours spent doing these jobs...
    may I add, these house jobs are usually picked up in the weekend... the working man could pick up extra hours above his 40hours per week at over time rates...pay and a half buddy....
    just thought I'd mention the opportunity cost... If he earns $20 per hour, then you can cost the house work out at $30... In australia that man could earn double pay on weekends and even triple pay
    so profit (on increased house value) less opportunity cost wages ($30 pr hr) less expenses associated in fixing up house equals real profit...
    Its all about opportunity costs... my OC maybe to spend more time studing up the next potential doosey of a company []... cost it out at 50... lol...
    [8D]
    .^sc
    Nakamoto means of Central origin ...

  8. #118
    Member Heavy Metal's Avatar
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    quote:Originally posted by Shrewd Crude

    as you mention in your 14 step program...Paint paper, simple plumbing, carpentry jobs, doing up one room at a time, gardening... how many hundreds of hours am I looking at?
    Macdunk probably doesn't follow his own advice, particularly 7, 8 and 10.

    Simultaneously having tenants and doing up rooms? Having to top up your equity after 3 years so you can match rent with outgoings???

    There is indeed good money for builders/renovators like Macdunk who buy houses in the right location in need of TLC, do them up, and flick them off for a good profit. But builders do not put up the renovated properties for rent afterwards, they sell as quickly as possible for the capital gain. That's where the money is - NOT the rent.

  9. #119
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    In every type of investment you have winners and losers. The losers bleat on about what, and if, and are normally that bloody lazy they will fail at everything in the end. The winners work at learning all about the business, then get stuck in 7 days a week 16 hours a day if need be. The losers wont put in that effort, i see some of you even quote real estate fees when buying a house[:o)].
    Then we have double time, and time and a half mentioned if you think like that go back to bed and dream on.ASPEX comes up with a tongue in the cheek get rich quick idea. The average person would lose doing that. Property is not for everyone some people are to lazy or stupid, or have other business interests.
    A normal kiwi plodder with a lower scale income, and education, that starts in the property market will end up filthy rich. Getting your feet on the ladder is the hard bit, the rest is easy. You should double your property numbers every three years, its that simple. ITS THE BANKS MONEY, INTEREST,RATES,INSURANCE,UPKEEP,VERSUS RENT, AND CAPITAL GAIN.
    The capital gain is greater than the interest.
    The rent is greater than the expences.
    Only have enough equity in the property to cover out goings is the secret thats why 3 year fixed interest is the way to go refinance to buy another one. macdunk

  10. #120
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    quote:Originally posted by trackers
    So, $65,000 less ~$5000 interest/rates less $6000 Real Estate Agent fees less Lawyer fees both ways ~$3000 Less Maintenance/Improvements $3000 = $48,000 profit.
    Thanks for the figures Trackers – always useful to see the real thing rather than just theory.

    If I could perhaps suggest a slight change in your views. It seems you think you have made a $40 - $70 k profit. I’m not sure you have as you will only gain a profit on the sale of your property – and at that point you are probably going to buy another house to live in which will cost you even more – so all your doing is riding the escalator to ever increasing property values – even if they are funded by ever increasing mortgages.

    What you have now achieved is an increase in equity and this is the real value of your property purchase. You’ll find you can now go to the bank and ask them to lend you more money and it is what you do with this money which will help determine your future. Borrow for a new car or holiday and you are doomed. Borrow to buy an asset and you’ll be right.

    You’ll also finds it a darn sight easier getting money out of the bank using property equity rather than share equity so well done!

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