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Hi, I originally posted this in the thread titled - ABC's & 123's of Renovation Management?
But i decided it will need its own thread to so not get lost in the posts made on the other topic.
please read below....
I have secured an AKL CBD apartment off the plans back in 2006 when there were next to no doom and gloom signs and i was just starting out in PI (I have since realised that this is probably not the best next investment for my portfolio, because once completed mid 08 there is a high chance it wont realise the purchase price let alone any instant equity on settlemet.) Having said that its in a good location, 2bdr 60sq + deck, no carpark but very close to queen st (i have since learnt the importance of carparks and if buying in the CBD to buy in the secondary market not off the plans too unpridectable)
I am exploring avenues to get out safely if possible but worst case senareo i just have to settle on it which i have bugeted for. It is a buy and hold but only till it reaches price paid or close to it (as im assuming it wont strait away) so i can put it back into better property with more land like i was doing to start with.
Why did i even get into this market you may ask, well i actually thought i may want to live in it at some point. An aqantince introduced me to the idea as she had good results from buying apartments off the plans realising a gain on settlement but started earlier in the boom.
However now having read the other thread about the IRD alert major shareholders living in their investments it doesn't make sence to miss out claiming on those losses.
So, if and when i settle is the apartment best in an LAQC (prof accounting advise was to start a new LAQC for apartment and move existing LAQC into trust, as overall the company is cashflow positive) or start a trading trust and keep it there and till market has changed or improved. Basically i want to reduce or midigate any possible loss so i can reinvest elsewhere.
Ive also been told others in a similar situation are just taking the loss on settlement and then reinvesting back in the suburbs straight away but not sure if you can make that loss back very well in this market now.
Any thoughts/comments welcomed
Alex.
But i decided it will need its own thread to so not get lost in the posts made on the other topic.
please read below....
I have secured an AKL CBD apartment off the plans back in 2006 when there were next to no doom and gloom signs and i was just starting out in PI (I have since realised that this is probably not the best next investment for my portfolio, because once completed mid 08 there is a high chance it wont realise the purchase price let alone any instant equity on settlemet.) Having said that its in a good location, 2bdr 60sq + deck, no carpark but very close to queen st (i have since learnt the importance of carparks and if buying in the CBD to buy in the secondary market not off the plans too unpridectable)
I am exploring avenues to get out safely if possible but worst case senareo i just have to settle on it which i have bugeted for. It is a buy and hold but only till it reaches price paid or close to it (as im assuming it wont strait away) so i can put it back into better property with more land like i was doing to start with.
Why did i even get into this market you may ask, well i actually thought i may want to live in it at some point. An aqantince introduced me to the idea as she had good results from buying apartments off the plans realising a gain on settlement but started earlier in the boom.
However now having read the other thread about the IRD alert major shareholders living in their investments it doesn't make sence to miss out claiming on those losses.
So, if and when i settle is the apartment best in an LAQC (prof accounting advise was to start a new LAQC for apartment and move existing LAQC into trust, as overall the company is cashflow positive) or start a trading trust and keep it there and till market has changed or improved. Basically i want to reduce or midigate any possible loss so i can reinvest elsewhere.
Ive also been told others in a similar situation are just taking the loss on settlement and then reinvesting back in the suburbs straight away but not sure if you can make that loss back very well in this market now.
Any thoughts/comments welcomed
Alex.
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