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13-03-2009, 05:03 PM
#1551
 Originally Posted by The Great Gold Guru
As long as the tenants are happy and paying the rent , does it really matter ?.
"Buy and hold" property is talking about decades ... not months. This global crisis has been great for me and my 8 rentals ... interest bill for the next 12 months will be around $30,000 less than the last 12 months. Like getting another job , tax free ... great !!
So your profit/loss situation is + $30,000. Hardly tax free.
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13-03-2009, 05:29 PM
#1552
Originally Posted by funguspudding
No. Agents file only their completed contracts.
There you go, I learn something new every day. I thought it was just contracts written. That they are done deals makes their property value data even more reliable.
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13-03-2009, 06:19 PM
#1553
Great, so there we have it, anytime is a good time to buy! The market has only fallen 2%!
You guys are absolutely crazy. So is the RBNZ, I mean they use QV.
GGG, you said it yourself...your now not having to shovel in $$$ just to make it break even. Being cashflow neutral at 6% is hardly what I'd call a great investment, especially if that was bought some years ago...
The most accurate indicator would be to get house sales at their peak, and house sales recently, of the same properties. But wait, hasnt this already happened? Its been in the paper numerous times with people losing anywhere from 20% - 50%. Your kidding yourself minimoke....
Thats something new fungus, about REINZ. Do you think houses have fallen in value? Do you think REINZ's figures represent the housing market accurately?
By the way - it's upside_down, not upside_umop 
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13-03-2009, 06:58 PM
#1554
Originally Posted by upside_umop
Thats something new fungus, about REINZ. Do you think houses have fallen in value? Do you think REINZ's figures represent the housing market accurately?
I'm not sure what is new. If you mean their reporting, it has always been that way. Yes. REINZ figures are exactly what happened over the preceding month. It's extremely hard to measure the overall market though, because a rush in any one price bracket makes it impossible to read the whole picture. e.g. Commentators might report market has fallen 10%, but it may be more if recent sales have included a reasonable percentage of high priced homes. It may be less if a whole heap of cheap dungers have had a run. So the average is important, the median is important, but the most important is days on market, or unsold listings. That tells the story. When the listings are piling up there's a drop coming, and when they are drying up - there's a rise coming. Yes. I think houses have fallen in value, but they still have a long long way to go, and will languish at their new low level for years. It's not yet a buyer's market. And they certainly don't stack up as an investment in the abscence of capital gain.
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13-03-2009, 11:21 PM
#1555
Member
Originally Posted by The Great Gold Guru
As long as the tenants are happy and paying the rent , does it really matter ?.
"Buy and hold" property is talking about decades ... not months. This global crisis has been great for me and my 8 rentals ... interest bill for the next 12 months will be around $30,000 less than the last 12 months. Like getting another job , tax free ... great !!
Niiice. We've had a great 12 months with our rental properties, rents have risen quite strongly, and as you say, interest payments have dropped by 3.4% compared to even just 4-5 months ago... does wonderful things for the cash-flow.
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14-03-2009, 08:44 AM
#1556
Member
As I said earlier Funguspudding ... I pulled my money out of the stockmarket is late 2007 ... used it as deposits on a few rentals. I've got no regrets , that same stock portfolio I sold has dropped by around 75% ( mainly speccie Aussie mining stocks ) , moving into residential property has saved me heaps of cash !!
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14-03-2009, 09:05 AM
#1557
Originally Posted by The Great Gold Guru
As I said earlier Funguspudding ... I pulled my money out of the stockmarket is late 2007 ... used it as deposits on a few rentals. I've got no regrets , that same stock portfolio I sold has dropped by around 75% ( mainly speccie Aussie mining stocks ) , moving into residential property has saved me heaps of cash !!
Good work, but tell me how the $30,000 increase in profit you claim because of lower interest is tax free?
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14-03-2009, 09:19 AM
#1558
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15-03-2009, 02:30 PM
#1559
Member
Originally Posted by Financially dependant
Amen to that!
If I am not for myself, then who will be for me? And if I am only for myself, what am I? And if not now, when?
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15-03-2009, 09:03 PM
#1560
Member
Funguspudding,
My point was instead of paying $100k in interest over the next twelve months I will be paying approx $70k ... that means I'm $30k better off. To be $30k better off thru normal employment I'd need to earn about $45k ... then get taxed back to $30k ... I just view the $30k as "tax free". Just my simplistic way of looking at it.
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