So your profit/loss situation is + $30,000. Hardly tax free.
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Great, so there we have it, anytime is a good time to buy! The market has only fallen 2%!
You guys are absolutely crazy. So is the RBNZ, I mean they use QV.
GGG, you said it yourself...your now not having to shovel in $$$ just to make it break even. Being cashflow neutral at 6% is hardly what I'd call a great investment, especially if that was bought some years ago...
The most accurate indicator would be to get house sales at their peak, and house sales recently, of the same properties. But wait, hasnt this already happened? Its been in the paper numerous times with people losing anywhere from 20% - 50%. Your kidding yourself minimoke....
Thats something new fungus, about REINZ. Do you think houses have fallen in value? Do you think REINZ's figures represent the housing market accurately?
I'm not sure what is new. If you mean their reporting, it has always been that way. Yes. REINZ figures are exactly what happened over the preceding month. It's extremely hard to measure the overall market though, because a rush in any one price bracket makes it impossible to read the whole picture. e.g. Commentators might report market has fallen 10%, but it may be more if recent sales have included a reasonable percentage of high priced homes. It may be less if a whole heap of cheap dungers have had a run. So the average is important, the median is important, but the most important is days on market, or unsold listings. That tells the story. When the listings are piling up there's a drop coming, and when they are drying up - there's a rise coming. Yes. I think houses have fallen in value, but they still have a long long way to go, and will languish at their new low level for years. It's not yet a buyer's market. And they certainly don't stack up as an investment in the abscence of capital gain.
As I said earlier Funguspudding ... I pulled my money out of the stockmarket is late 2007 ... used it as deposits on a few rentals. I've got no regrets , that same stock portfolio I sold has dropped by around 75% ( mainly speccie Aussie mining stocks ) , moving into residential property has saved me heaps of cash !!
Yet another good article from Brian Gaynor........
http://www.nzherald.co.nz/business/n...ectid=10561595
Funguspudding,
My point was instead of paying $100k in interest over the next twelve months I will be paying approx $70k ... that means I'm $30k better off. To be $30k better off thru normal employment I'd need to earn about $45k ... then get taxed back to $30k ... I just view the $30k as "tax free". Just my simplistic way of looking at it.