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We know what is squeezing the life out of the rental market

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  • Originally posted by Perry View Post
    Presuming that and 20% tax, that would be $68k, after four years.
    Can't you get yearly payments on a TD?
    Could always put it in a PIE fund.
    Personally it is shares for me.
    5% to 7% dividend and growth to match inflation at least.

    Originally posted by eri View Post
    ^

    and don't forget

    the nz gov doesn't guarantee bank deposits

    https://www.interest.co.nz/opinion/8...ind-all-savers

    so if the bank holding your $2,000,000 folded

    you'd lose quite a bit

    but if that $2m had been spent on 4 x $500,000 houses....
    But they do guarantee houses?

    Comment


    • ^

      When a bunch of digits

      Disappear on a screen due to your bank being involved in some mysterious shonky trading in derivatives

      That's it, you're left with nothing

      Happens all the time

      But land remains,

      And buildings are insured
      have you defeated them?
      your demons

      Comment


      • Originally posted by eri View Post
        Happens all the time
        Happens all the time?
        Overstating the risks a bit I think.

        Comment


        • not trying to convince you

          leave the impossible to fools

          just trying to help understanding...

          dec2014

          ANZ has admitted misleading conduct over interest rate swaps

          "Some of these people lost their farms, they lost everything,"

          https://www.nzherald.co.nz/business/...ectid=11368427
          Last edited by eri; 03-07-2018, 10:22 AM.
          have you defeated them?
          your demons

          Comment


          • Originally posted by eri View Post
            not trying to convince you

            leave the impossible to fools

            just trying to help understanding...

            dec2014

            ANZ has admitted misleading conduct over interest rate swaps

            "Some of these people lost their farms, they lost everything,"

            https://www.nzherald.co.nz/business/...ectid=11368427
            So then having land didn't in fact save them...
            Squadly dinky do!

            Comment


            • ^

              no, but it won't if you gamble it at the casino either

              they let the bank use their equity

              as security for dodgy banking products

              the bank staff decided not to explain to them

              2 investment options for $2,000,000

              1. buy land, own it outright, manage it yourself

              2. give it all to the bank, hope they pay you better than equivalent rent, hope they don't fold, hope you're not the easy, first target of gov tax takes, hope a loooong line of ticket clippers act ethically in YOUR best interests

              you pays'ye money + makes'ye choice

              i'd rather work in my own interests

              than pay someone who said they were workig for me

              but had a proven track record of working for themselves on my dime

              fools + money....
              Last edited by eri; 03-07-2018, 10:58 AM.
              have you defeated them?
              your demons

              Comment


              • Originally posted by Wayne View Post
                Can't you get yearly payments on a TD?
                Not usually. The final 'dividend' is usually paid at maturity.
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                Comment


                • Way back in the late 80's payments were made up to 12 times per year. Remember the wage/price freeze Perry? Banks had to make deposits more attractive. They used to credit interest on a daily basis as well. Anything to get around the freeze Muldoon placed upon the country.
                  www.3888444.co.nz
                  Facebook Page

                  Comment


                  • I understand that interest credits are (or may be) made monthly, or at an even shorter cycle.

                    What I have doubts about is that the TD principal and/or the interest become available funds until maturity.
                    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                    Comment


                    • TD can be structured pretty much how you like nowadays

                      You can choose to invest from a range of fixed terms (from 30 days to five years)

                      For terms of 180 days or more, interest can be either:
                      • paid into any New Zealand bank account
                      • monthly,
                      • quarterly,
                      • six monthly,
                        annually
                      • or at maturity
                      • reinvested (compounded)
                      • quarterly,
                      • six monthly,
                      • annually
                      • or at maturity.

                      For terms of less than 180 days, interest is paid or compounded at maturity.

                      BUT

                      if you want maximum flexibility, say 30 day term, you only get 0.5% interest

                      https://www.anz.co.nz/auxiliary/rate...term-deposits/

                      The minimum investment is $10,000.
                      Last edited by eri; 04-07-2018, 07:54 AM.
                      have you defeated them?
                      your demons

                      Comment


                      • Originally posted by Perry View Post
                        What I have doubts about is that the TD principal and/or the interest become available funds until maturity.
                        Obviously the TD principal can only be paid back on maturity - otherwise you would not be investing anything.
                        Last edited by Perry; 04-07-2018, 09:19 AM.

                        Comment


                        • TDs "have their place," but I just don't see them as a viable alternative as suggested.

                          Not just on the basis of the interest, but having the full house-purchase-price available to invest and taking into account inflation.

                          As I recall from many contributions to these forums, two prominent objectives in the minds of PIs are:
                          1) A hedge against inflation;
                          2) Greater financial flexibility.

                          But with the horror stories appearing in the media, PI is not without its risks, too.
                          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                          Comment


                          • Originally posted by Perry View Post
                            TDs "have their place," but I just don't see them as a viable alternative as suggested.

                            Not just on the basis of the interest, but having the full house-purchase-price available to invest and taking into account inflation.

                            As I recall from many contributions to these forums, two prominent objectives in the minds of PIs are:
                            1) A hedge against inflation;
                            2) Greater financial flexibility.

                            But with the horror stories appearing in the media, PI is not without its risks, too.
                            I'd agree re the TDs - the return is still too low to bother with and they don't keep up with inflation.
                            Which is why I prefer shares.
                            I'm quite happy with a return of 15% total (dividend and capital) over the last year and 12.4% average for the past 15 years.
                            For cash it beats houses hands down I think - especially now with increasing costs and such low returns after those costs.

                            Comment


                            • More Claptrap and Twaddle

                              If property managers can't fix mouldy homes, are they just ripping off renters?
                              5 July 2018
                              Originally posted by Stuff
                              . . . but we know there are far too many cowboys in the wild west that is the rental market.
                              Who is "we" and how does "we know?"

                              Logical fallacy bald assertion by a gutter journo, as usual.

                              Call to licence, sanction property managers
                              5 July 2018
                              Originally posted by Stuff
                              Licensing property managers should be a priority for the government, said Kevin Edmunds, of property management firm Quinovic, in Thorndon, Wellington, with sanctions for those who did not meet their obligations. He called for a similar model to that of real estate agents, who are governed by an independent body. There was no barrier to entry for the industry, he said, and no requirement to have any experience. "It's not unusual to see people come into the industry and undercut the established players."
                              And yet . . .

                              Research from Consumer NZ earlier this year found tenants who rented through a property management company were more likely to experience problems than those who dealt direct with the owner.
                              There's more than a few threads and posts hereabouts on wayward PMs attached to REAs, too.

                              As has been expressed on these forums before, if there's a perceived need to licence PMs and DIY-PM-PIs, then let's licence and sanction tenants, too.
                              Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                              Comment


                              • Originally posted by Perry View Post
                                Licensing property managers should be a priority for the government, said Kevin Edmunds, of property management firm Quinovic, in Thorndon, Wellington

                                It's almost like Quinovic stands to profit greatly from licencing property managers.

                                Comment

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