Investor, Buy and Hold, Rehabs · Wellington, Wellington · Member since 2016 · 44 posts · 27 votes
Let's get everyone who is a New Zealand based Real Estate / Property Investor to reply here, so we can try and form a group to share ideas both for investing locally and abroad. I know there are many of you out there, so put your name here!
I thought I recognised the name but hadnt seen an image before. Welcome to BP. You'll enjoy it over here, less tall poppy cutting than the NZ forums which we like ;-)
I'm brazilian but I'm based in Auckland this moment.
Thank you for @Kyle Elmer to showing me this thread.
I am willing to get some information to start investing in America with none of my money from here. I'm looking forward to have some tips or information that can help me out to start. If someone is also based in Auckland, it would be a pleasure to have some coffee, or something else, and have a nice talk.
I don't have too much experience yet to help who needs but I can share what I know and we help each other.
Welcome to the group. First things first what are you looking to invest in and why? Once you have a plan of why you are investing you can start to build a Stratergy that fits those goals.
Some places to start,
Do you want cashflow now to top up your income?
Are you looking to build an early retirement nest egg to replace a job you have now?
In general you can either be making capital or cashflow, it's rare you can do both at the same time so plan what you need now and in the near future then go from there?
If you want some help post here or feel free to PM me and I might be able to point you in the right direction?
I'm originally from the USA and came here when I was 5 so am a dual citizen.
I live in Wellington and have a wife and a child on the way.
I've been researching property investing for a month or so now and am looking to buy my first investment property in the next 6 months.
I want to get properties that increase my cash flow and continue to do so so that I can replace my job in less than 5 years.
I'm looking at buy to lets in NZ to get my feet wet but am looking at trying to find out which regions yield great rents based on the purchase price.
I attended the rich dad education 3 day seminar last weekend and found the workshop very useful however I wasn't going to do the mentor ship for $37,500.
I'm after any information, contacts, networking there is to start me on my journey.
I'm eager to learn as much information as I can and put it hard work to make it happen.
Hey all! Glad to see this thread has taken on a life of its own. From the advice of an estate planner here in NZ I have been made aware some potentially problematic tax laws for NZ Tax Residents who have foreign income.
According to the worldwide income reporting, I have been told that for any rental income made abroad we cannot claim depreciation of the property against the rents. Is this true? If so, it blows a huge hole in the strategy we are using in the US building a rental portfolio. That said, we are creating a business structure where the rentals are each owned by individual LLCs, all of which themselves are owned by a holding company. That holding company is the only entity owned by me, and therefore I am not collecting any rents from the properties. Anyone who has knowledge of this in regards to rents, both here in NZ, and earned abroad, would be very helpful!
Additionally, on a side note, but equally frustrating, I was advised that any foreign taxable investments that are held (US stocks, index funds, etc) are all taxed yearly as income to the tune of 5% of the holdings, regardless of gains, realization, etc, and recognized as income, and taxed as such. So they assume in NZ you make a 5% gain EACH year, tax you on it, and keep doing so as long as you hold it. Then, presumably when you do realize it for retirement down the line, having been taxed every year on 5% of it in NZ, the US will then tax you on what is left. Seems like quite the deterrent for holding foreign investments to me.
@Dean Letfus, I feel you may have some good insight on the foreign rental income.
Welcome to the group. If your looking to get plenty of good value info it is probably best to join a property investor Association (PIA). Being in Wellington you have 2 local ones to choose from http://wellington.nzpif.org.nz/ and http://capitalpia.org.nz/ .
As for regions you can keep an eye on the QV data, I think you can sign up to get a newsletter that gives you the latest data (I get it as part of work but assume anyone can sign up for it). If you're a member of a PIA then you also have the chance at discounts like access to CoreLogic data etc.
@Kevin Estey , I haven't used them myself but I always hear Matthew Gilligan's (at GRA) name come up when property tax and accounting come up in NZ so he may have a speciallist on the off shore tax questions. The other one who has spoken at the National conference a lot is Mark Withers at Withers Tsang & Co.
Would you still come under the same issue if you didnt own the assets, ie if they were held in trust etc or is it if you are entitled to the benefit then you must pay the tax? Sort of questions you need to ask those tax sepciallists as that can get there creative juices going and there may be answer that hasn't been thought of that way?
Thanks @Kyle Elmer, it's actually an advisor at GRA that we are working with on sussing out the details. In speaking to my US accountant, he has clients in NZ who own property in NZ, and he is certain they claim a certain level of depreciation on the rents. I'm getting conflicting information so wondering what the experience of those here in NZ who receive rent, and those here in NZ who have rentals in the US and elsewhere like @Dean Letfus, and what the taxation looks like for them?
Hey @Kyle Elmer. Regarding depreciation, you claim it in the USA, when it becomes part of your NZ return it is disregarded or not allowed and effectively becomes taxable profit. You always have to work out your US portfolio based on NZ tax laws and rates. Ignore the USA it is irrelevant.
IT's very simple there is nothing clever to apply. WE have the best tax advice you can get in NZ and the USA. it's really basic actually. If you're a kiwi treat everything as under IRD rules. There are only 2 accountants in NZ who have a clue about this and GRA are one of them. So their advice will be sound.
I've never heard of the 5% thing. We certainly don't pay tax on anything we haven't made a profit on and we have been in the USA for years. So I don't know what that is about, maybe it applies specifically to shares.
I'm Abby from Christchurch, currently on maternity leave and wanting to get into house flipping. My partner and I have a building company and want to eventually do work on our own projects. We have a rental plus the house we currently live in. With not much experience am keen for any advice, info and help! In particular -info on what finance options are out there when the normal banks have tight lending restrictions. Cheers!
Welcome to the group. A friend of mine @Hadar Orkibi has done some work in Christchurch in the past and could have some more local specific info for you. As for finance Kris Pederson Mortgages seems to be doing a lot with investors lately and you also have Squirel mortgages who were investor friendly too.
Another good contact there would be Lewis Donaldson, he is an agent there and used to be in the board of the NZPIF with my wife and is an investor himself.
If you have specific questions feel free to give me a PM, were a bit in the game down here but haven't really done the onsell part of flipping as we have more BRRRR'd our deals.
@Abby Ley Flipping in Chch thees days is mainly done by people who specialize in earthquake damaged homes. There is a lot involved with this strategy and these houses now selling for more then what they did 2-3 years ago. try talking to @Billy Mclachlan he is doing a few at the moment.
Im currently not so active in Chch as the market slowed down and the risk getting stuck with a property are much higher, specially if you didn't get a great deal on the buying side.
Im currently overseas for the next 2 weeks but happy to discuss later in August if you want.
@Abby Ley happy to discuss the opportunities and strategy's used in the As Is Where Is market. Currently doing a few myself and there is still lots out there.
My partner and I are Christchurch-based beginners looking to connect with some people locally. I work in construction project management and my partner is a carpenter, and we're hoping to dip our feet into flipping the same as you Abbey.
We would really love to connect with people with local knowledge and experience, and would appreciate any time you have for a coffee or a phone call!