Finance guru looks south after cashing in on housing boom

[Davo36]

Man, talk about taking an interesting thread and making it really really boring sb.

You probably have a point about overseas shares. Another one of Labour's fantastic policies. Their mainly benefit-receiving voters won't have overseas shares of course, only the rich pricks do.

Now can we get back to Bernard Hickey et al?

[MikeO]

And that's the point, cash in the bank is safe.

YOu also don't have to do anything at all to keep it there.

With a rental property, there's quite a lot of work: Maintenance, finding new tenants, cleaning up after tenants, collecting rent etc.

So surely we should expect a better return from a property? Not the same as a term deposit?

But Davo the comparison was purely based on an assumed 5% appreciation v 5% pre-tax interest on a TD. It made no allowance at all for the fact that tenants actually pay rent. So concievably you could buy a property, leave it empty so avoid these costs and hassles and still be better off than if you had a TD...

[Perry]

A TD will result in an interest credit (monthly?) at least.
Would an empty house do that? There would also be
those nasty rates & insurance, not to mention R & M.
Actually, maybe there would not be insurance? Insurers
don't like empty houses. Too tempting to low-lifes.

[lawt]

So concievably you could buy a property, leave it empty so avoid these costs and hassles and still be better off than if you had a TD...

But if there is no taxable income generated you would be liable for tax on the capital gain when you sold as you no longer bought with the intent of generating taxable income, but for capital gain.

[MikeO]

But if there is no taxable income generated you would be liable for tax on the capital gain when you sold as you no longer bought with the intent of generating taxable income, but for capital gain.

yeah maybe. unless you had another reason for buying it. IN any case not really my point. Clearly you would be stupid to leave a place empty. I was just trying to point out that the comparison ignored rental income.

[JABlog]

Let's not forget the good Bernard has done - i remember when he suggested we contact our lenders to secure better mortgage rates. Lots of us followed that advice and there's no doubt it has save thousands of $$ in interest payments to the banks. So there is good with the not so good having a 'Bernard'.

cheers,

Donna

Soory to hijack it but getting back to Benard
Dont give full credit to him Donna-there were others he was just more vocal about it - lots of folk were actually doing it before Hickey.

$400K profit- so this enables you financial freedom so whats wrong with it again?

[Bob Kane]

$400K profit- so this enables you financial freedom so whats wrong with it again?

I'm expecting Bernard to give $130k to IRD as he's very keen to implement a capital gains tax on property.

[Lissica]

He's a good contrarian indicator.

The moment he become bullish and proclaims the sky is no longer falling....be afraid. Be very afraid, and preferably, cash up.

[Davo36]

He's a good contrarian indicator.

The moment he become bullish and proclaims the sky is no longer falling....be afraid. Be very afraid, and preferably, cash up.

Where's the 'Like' button? I am +1 to this.

This is exactly what he is good for.

[SwissKiwi]

Where's the 'Like' button? I am +1 to this.

This is exactly what he is good for.

+2

I've done v well doing the opposite of what Weekend at Bernies recommends.