When Good Debt Turns Bad

Bad Debt

Remember the days of 20% interest rates? If you had a mortgage of $100,000, you’d pay $20,000 pa in interest. But if the interest rate hiked by 4% to 24% you would squirm, tighten your belt and

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Investment Property Win for Vendor, Tenants & Buyer

square-peg-round-hole-smash

It’s a seller’s market right now so any ole Real Estate Agent will do, am I right? 

No - I am not.  To achieve the best sale price for your home you need the best Real Estate Agent on the job.

 

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101 Reasons Why A Capital Gains Tax Is A Howling DOG!

howling wolf

As John Key once said, "….if it looks like a dog and smells like a dog - it’s a dog!"  John was describing yet another attempt by Labour to promote a Capital Gains Tax (CGT).

We have in fact had this debate for decades. Fortunately every time common sense prevails (so far) and it gets proven beyond doubt that it is an expensive tax to administer and doesn’t produce the sort of revenue that was ever hoped for.  So...

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How To Sell Your Investment Property With An RE Agent

Law gavel  houseSelling an Investment Property can be fraught with challenges for a property investor.  Engaging a professional Real Estate Agent who has the experience selling Investment Properties offers more than just the usual marketing acumen you get from most property sales agents. 

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When To Sell An Investment Property

Property Investors know how to buy rental properties.  It’s a process they’re comfortable with and they obviously enjoy it.

Selling an investment property however, is considered a more...

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Do You Need A Specialist RE Agent To Sell Your IP?

Apple Vs OrangesThe common misconception is marketing and selling an Investment Property (IP) requires the same skills and processes utilised to sell an Owner Occupied property.  

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Can Property Yields Fluctuate?

House Piggy Bank-2Cap Rates or Yields can most definitely fluctuate. That is due to Property Sales Markets being independent of property Rental Markets, and both of them fluctuate independently of each other. However there is correlation between them when one, or the other, or both markets are on the move. Just remember that a Cap Rate takes a slice in time, so Cap Rates need to be adjusted accordingly. 

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How to Use Cap Rates (Yields) For Property Investment

What are Capitalisation Rates (also known as Cap Rates or Yields)?

Essentially they are a subjective method by which to; Value a property; Compare two, or more similar properties in similar locations; and Evaluate the financial feasibility of major renovation projects. So there is a lot of sense and value in getting to know how they work.

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Calculating the Income, Value of Asset and Cap Rates

Cogs with peopleWhat is Income? 

Income can either be the actual or the potential rental return. 

The potential return is the market rent for similar quality property in a similar location. It is not the highest rent possible as if the property has had a high-spec renovation (unless you are actually going to do the work).

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How Do Valuers Calculate The Value Of Your Property

property-on-scalesA Registered Valuer uses two different equations to support and justify their assessment in a Valuation Report. These equations are known as the Replacement Approach and the Capitalisation Approach.

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