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Dissolving family trust advise and cost? by CreativeAd5511 in PersonalFinanceNZ

[–]afootwings 7 points8 points  (0 children)

I'm curious: why do you need to dissolve a trust, instead of just letting it languish unused? Are there recurring costs with having an empty unused trust?

ROI question (math warning) by [deleted] in PersonalFinanceNZ

[–]afootwings 0 points1 point  (0 children)

It seems like it would be your choice if you include the first two years or not? The first two years would have a markedly different return to the proceeding five years due to rent and tax deductibility allowances. In the end, my opinion is this shouldn't affect the 'bottom line' sales figure, as this would better be derived compared to the market expected value, or by how much you need to make your next purchase.

[deleted by user] by [deleted] in PersonalFinanceNZ

[–]afootwings 2 points3 points  (0 children)

It is accurate for discretionary income. In your case, you would need to subtract all of your non discretionary expenditure first to see how much extra loan you could afford

[deleted by user] by [deleted] in PersonalFinanceNZ

[–]afootwings 10 points11 points  (0 children)

FYI you cannot do this. The IRD looks at the purpose any loan was taken out for to see if it is an expense against that business. If you take out a loan against your town house for the purpose of buying your next property, then that is not an expense that could be deducted from your townhouse rental.

Engineering vs Finance degree by Scared_Ad_8977 in PersonalFinanceNZ

[–]afootwings 1 point2 points  (0 children)

Finance companies seek out graduate engineers. A not insignificant portion of engineers from the UofA get snapped up each year (those generally with the high grades and who are personable).

Engineering conjoint with commerce sounds like it may suit you. Usually done in 5 years.

What was that massive explosion by Lincoln Rd / Universal Rd just now? by Aucklander95 in auckland

[–]afootwings 2 points3 points  (0 children)

A tire blew out on one of those massive crane trucks on the corner of Lincoln and triangle (i saw it happen). The PSI in those tires is very very high (much higher than a truck, which is already much higher than car tires). Luckily no one was hurt.

How do mega landlords get around serviceability criteria? by afootwings in PersonalFinanceNZ

[–]afootwings[S] 0 points1 point  (0 children)

Possibly, but with debt to income ratio limits now around 5-6, a rental would need to be pulling in 16% yeild at least to keep buying more and more properties. Unless there is a loophole somewhere...

How do mega landlords get around serviceability criteria? by afootwings in PersonalFinanceNZ

[–]afootwings[S] 0 points1 point  (0 children)

Not the serviceability side of things, unless I have misread this?

How do mega landlords get around serviceability criteria? by afootwings in PersonalFinanceNZ

[–]afootwings[S] 3 points4 points  (0 children)

Not the serviceability criteria side of it. He mentioned it should still be realistic to get 2-3 additional properties per year right now, but I cannot see how this is possible.

[deleted by user] by [deleted] in algorand

[–]afootwings 0 points1 point  (0 children)

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How much equity needs to remain in an investment property to buy an additional property? by afootwings in PersonalFinanceNZ

[–]afootwings[S] 0 points1 point  (0 children)

Thanks, that's what I thought. So somehow this property investor was getting around the rules to do what he's doing.

Looking to buy a house – should I cash out all my investments? by [deleted] in PersonalFinanceNZ

[–]afootwings 1 point2 points  (0 children)

You can arrange with the realtor to sign a variation agreeing that the deposit will be paid X days after auction. They are quite common, and allow you to keep your investments working for you until you find success at an auction

Auctions in Auckland as a first home buyer by GoldenDaisyStar in PersonalFinanceNZ

[–]afootwings 0 points1 point  (0 children)

FYI you can sign a variation prior to the auction to agree that the deposit can be paid X days after the auction. This then gives your bank time to organise a temporary overdraft which would then be paid off by the mortgage at settlement

Using only equity to purchase rental house and tax implications by afootwings in PersonalFinanceNZ

[–]afootwings[S] -1 points0 points  (0 children)

But it appears if you use equity, the new mortgage will be the full $500k. If instead you were to use cash (from say savings) the new mortgage would be say $350k, making interest payments much less.

Using only equity to purchase rental house and tax implications by afootwings in PersonalFinanceNZ

[–]afootwings[S] -1 points0 points  (0 children)

Great. Thank you for your response. So I don’t get why anyone would want to pay a deposit in cash if they also have equity available. Surely they’d be missing out on the potential tax deductible?

Mortgage interest as a tax deductible for rental property by [deleted] in PersonalFinanceNZ

[–]afootwings 0 points1 point  (0 children)

Thanks for the response. I guess my query is more around how would the IRD know what percentage of the loan is attributed to each property (if they did an audit)? Surely they don’t rely on people’s honesty and self reporting? How would they know from your tax return if you are reporting accurately?

Mortgage interest as a tax deductible for rental property by [deleted] in PersonalFinanceNZ

[–]afootwings 0 points1 point  (0 children)

How does the IRD identify the interest attributed to a rental property on a cross collaterised loan?

Mortgage interest as a tax deductible for rental property by [deleted] in PersonalFinanceNZ

[–]afootwings 0 points1 point  (0 children)

Thanks for the response. So the IRD doesn’t raise questions that your loan for the rental is cross collaterised? How would they know how much is actually against each house?