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  • #91
    Cryptocurrencies are an interesting one. Most people are buying them purely to speculate and sell later at a higher price. By definition, this is the intention test, and it is all caught under current law - gains are taxable.

    What argument would they use other than that? I suppose you could be using it as a foreign-owned store of value, concerned that the NZD is going to drop, or maybe they want access to a secure and secret payment network? Though they'd need evidence that's how they're using it, not just speculation.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

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    • #92
      With BitCoin it's 99% speculation I reckon. Will crash pretty soon I reckon.

      Don't Believe the Hype, I'd be interested in your course, but 90 days is far too long. I want to start making money now! Do you have any like, 30 minute courses?
      Squadly dinky do!

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      • #93
        Originally posted by Anthonyacat View Post
        Uhh... I'm by no means a genius buyer, but I've never bought a property that didn't pay for itself at 100% finance. Interest, Rates, Insurance, and an allowance for maintenance - though I'll admit I've tended to underestimate maintenance, it's not significant in the big scheme. [EDIT: And PM fees at 7.5% + GST]

        2012, $206k at $320pw - 3bed in Clendon Park, South Auckland
        2013, $170k 3bed in Rotorua - I don't remember the exact rent; maybe $260pw? But it covered it all.
        2014, $200k 3bed in Lower Hutt, $310pw
        2017, $720k in Auckland CBD, $1,220pw ($770pw 3bed + $400pw studio + $60pw carpark)

        Some of them have been pretty close, but I always use an interest rate slightly higher than market available. Used to be 7%, but recently I've dropped to 5.5% or 6% as I don't actually believe rates will go up significantly anytime soon.
        Interested to hear a bit more about that house you bought this year in Ak for $720k - where and how did you buy it ie. auction etc. That seems like a really cheap price for a 3 bed house in CBD, separate studio (presumably with kitchen and bathroom to be able to rent it out separately) and being able to rent the car park as well must mean it is pretty central.

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        • #94
          Originally posted by SimonW View Post
          I feel like that article was supposed to say year on year increases of 10.4%, but even that seems light for Auckland...
          QV - All NZ, 40.6% in four years to Oct 2017
          DFTBA

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          • #95
            Originally posted by kazzp View Post
            Interested to hear a bit more about that house you bought this year in Ak for $720k - where and how did you buy it ie. auction etc. That seems like a really cheap price for a 3 bed house in CBD, separate studio (presumably with kitchen and bathroom to be able to rent it out separately) and being able to rent the car park as well must mean it is pretty central.
            Apartment, not house. But I do still feel I got a good price - probably not anything fantastic though. Bianco building, on White Street near Aotea Square. The studio has 'cooking facilities' but not a full kitchen.

            I just responded to an ad. It was just before Christmas, so not so many buyers around. Think we went conditional on Christmas Eve.
            AAT Accounting Services - Property Specialist - [email protected]
            Fixed price fees and quick knowledgeable service for property investors & traders!

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            • #96
              Originally posted by Anthonyacat View Post
              Apartment, not house. But I do still feel I got a good price - probably not anything fantastic though. Bianco building, on White Street near Aotea Square. The studio has 'cooking facilities' but not a full kitchen.

              I just responded to an ad. It was just before Christmas, so not so many buyers around. Think we went conditional on Christmas Eve.
              What are the body corporate and rates like ?

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              • #97
                Originally posted by Beano View Post
                What are the body corporate and rates like ?
                Too high! But not completely unreasonable given others in the area. From memory BC is just under $10k per year (but a little extra this year as there's a structural enquiry; no idea if anything is going to come of that) and rates of maybe $2k?
                AAT Accounting Services - Property Specialist - [email protected]
                Fixed price fees and quick knowledgeable service for property investors & traders!

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                • #98
                  That does seem very high.

                  Originally posted by Anthonyacat View Post
                  Too high! But not completely unreasonable given others in the area. From memory BC is just under $10k per year (but a little extra this year as there's a structural enquiry; no idea if anything is going to come of that) and rates of maybe $2k?
                  Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                  • #99
                    Originally posted by Anthonyacat View Post
                    Too high! But not completely unreasonable given others in the area. From memory BC is just under $10k per year (but a little extra this year as there's a structural enquiry; no idea if anything is going to come of that) and rates of maybe $2k?
                    A 6.6pc net yield is not too bad for Auckland ...expected a lower yield ...This appears to be a good buy!

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                    • Originally posted by Beano View Post
                      A 6.6pc net yield is not too bad for Auckland ...expected a lower yield ...This appears to be a good buy!
                      Even better when you consider Airbnb income over summer! But I didn't get it quite right last year and had a lot of vacancy in April and May. See if we can do better this year.
                      AAT Accounting Services - Property Specialist - [email protected]
                      Fixed price fees and quick knowledgeable service for property investors & traders!

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                      • Did you do the GST structure where you lease to a separate entity which runs the rental side of things?

                        My limited understanding from running that webinar is once you are on pace to make over 60K GST can kick in, which would make the start of the FY risky in that respect? You're the expert :-)
                        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                        • Originally posted by Nick G View Post
                          Did you do the GST structure where you lease to a separate entity which runs the rental side of things?

                          My limited understanding from running that webinar is once you are on pace to make over 60K GST can kick in, which would make the start of the FY risky in that respect? You're the expert :-)
                          On pace is a good heuristic for it when it comes to continuously operating businesses, but the technical term is expected.

                          You can bring in $59.9k on the first of April, and so long as there is no reasonable expectation that you'll get any more for the whole rest of the year, you won't have to register. But if you're operating a business year-round that earned $55k last year, and this year's sales are tracking 20% higher, then yes you should be registering.
                          AAT Accounting Services - Property Specialist - [email protected]
                          Fixed price fees and quick knowledgeable service for property investors & traders!

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                          • Ah, OK. So they won't ping you if you make $10K in the first month of a financial year if you have previous documented plans to only lease for 5 calendar months?
                            Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                            • Originally posted by Anthonyacat View Post
                              But I didn't get it quite right last year and had a lot of vacancy in April and May.
                              Everybody had a lot of vacancy in May. It was deathly quiet in Airbnbs the country over.
                              My blog. From personal experience.
                              http://statehousinginnz.wordpress.com/

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                              • Originally posted by sidinz View Post
                                Everybody had a lot of vacancy in May. It was deathly quiet in Airbnbs the country over.
                                Well that's good to know. I blamed my Airbnb manager.

                                And yeah Nick - the IRD won't know when you get your turnover, because you're not filing regular returns. The problem occurs in the year you do hit $60k, they'd have the ability to query why you weren't paying GST and you'd need to justify (though, unlikely they'd even query). But in my case even including the carpark lease at $300 per month, I'd need to sell 376 nights per year at $150 per night to reach $60k. Given I only rent it out for 3-4 months, and there aren't 376 nights in a full year, I should be ok!
                                AAT Accounting Services - Property Specialist - [email protected]
                                Fixed price fees and quick knowledgeable service for property investors & traders!

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