'Our First Home' Auctions How Much $$

[donna]

Hi All,

I've not watched the show 'Our First Home' so far but it's the first of the property auctions tonight. I wonder what the properties will go for and what profit they'll achieve. Ha, I have to say I never thought I'd see the day 'property trading' would be mainstream TV viewing.

cheers,

donna

[jimO]

i would like to punch the presenter in the face, cant stand his voice and will he either shave or grow a beard, also cant stand the god botherer woman, aussie mick or any of the rest of the contestants also the hokey toyota adds make me ashamed of owning 8 hiluxes

[eri]

if you've watched

more than once

why?

[spaceman]

I've a question.... Does anybody think the contestants are "traders"?

Just based on what they're doing in the show ....of course they may well be outside of the show.

I was wondering, seems obvious......but then again???

Cheers
Spaceman

[Davo36]

I don't watch this rubbish.

I see from ads that there's a new program coming to Choice TV too, one by Mike Pero real estate, where they do up people's front yards.

It seems property is ubiquitous right now.

[Damap]

IT's been a great series. As long as the Wardlaws don't win I'll be happy. It's typical badly produced kiwi tv but I've learned a bit and it's great chewing gum for the mind.

[bpkeng]

Ok, I haven't followed the series, so going by the numbers I've read about... Figures are approx, ignoring GST.
Purchase $531k. Sold $720k. Reserve $577k. Profit on TV = 720-577 = $143k (Making reno costs only $46k).

Reno budget was $100k, how much did they actually spend? Assuming they were on target and were actual traders, without sponsored products, then
720-531-100 = $89k. Less 28% tax = 64k net. Not bad, but doesn't sound like wow?

[jimO]

they pay tax on profit?

[VKR]

Does seem like an exaggerated TV profit. No agent commissions. No holding costs. No general expenses in the calculations. No lawyer fees etc etc. they also get a tonne of freebies.

Tax should be paid on their income for the year if not bought under a company. Gst is avoided I guess even though it is above $60k. That would take away more profit.

[Davo36]

Oh yeah, the profits on these shows are always a work of fiction.

I guess they do it for a few reasons, like, it's tv and so they don't want to get bogged down in figures, details etc. Also, the show is really about the people, the conflicts, tensions etc. - so just like any other reality show but kind of about property as opposed to being in a house (big brother) or on an island (survivor) etc.

[RHarris]

These shows I would have thought would be a prime opportunity for the IRD to approach media outlets and say "look these Charlie's will be paying tax/ gst on these profits. You can't go buying and selling properties willy nilly and not pay tax".

[Courham]

Oh yeah, the profits on these shows are always a work of fiction.

I guess they do it for a few reasons, like, it's tv and so they don't want to get bogged down in figures, details etc. Also, the show is really about the people, the conflicts, tensions etc. - so just like any other reality show but kind of about property as opposed to being in a house (big brother) or on an island (survivor) etc.

But couldn't shows like this an excellent way of educating the public about the financial implications of such renovations? I guess that is a leap too far for the crap that we call television here in NZ these days. Our financial literacy in this country is joke, and shows like this could actually educate the masses on potential pitfalls of such a strategy- even if only small segments during the show.

I hope IRD does get involved and claims the taxes owed to the NZ public!

Craig

[Damap]

They spent 146K on reno. Profit was crap but as punters on the show they made great money which will get the kids into a house which was the whole goal.

[Damap]

Of course they'll pay tax they bought with the intent of selling. Why would you think they would avoid it?

[eri]

does the show ever mention tax?

if not

why not?

they may say it's just a building show

but if half the talk is about money

they need to talk tax too