How does money work?

Posted on February 2, 2012 by Tina Webb Leave a comment


We have all heard that as New Zealander’s we need to learn to save more rather than spend. Impulse buying is quick and easy but finding that money to pay for essentials, once it has been spent is not always as easy.
Years ago when my family was young, I discovered that we managed financially while paying off a car loan and that once that loan was paid off there was no money left over at the end of the pay packet.
When I realized that, I decided that since we, as a family, had managed to live without that [...] Continue Reading…



Home Link Finance, Property Mindset

Headlines

Posted on February 1, 2012 by Tina Webb Leave a comment


Building consents at lowest level in 46 years, stats NZ figures show
It’s generally been known that once the building industry picks up that the NZ economy starts to move since more employment filters through the various supply companies involved with construction.  We’re certainly not out of the recession but compared to what I am hearing from friends overseas, we’re not doing to bad in general.  
Read more here
finance, mortgages
What will the changes be once The Reserve Bank Governor Alan Bollard leaves?
No significant changes are expected to the Government’s monetary policy Finance Minister Bill English says.
Read more on this issue here
fi
finance, [...] Continue Reading…



General news

Trust Gifting Changes

Posted on December 2, 2011 by Tina Webb Leave a comment


As you may or may not be aware, there have been some major changes made recently to the Gifting rules. As of 1st November 2011, the limit of $27,000 per person p.a. in gifts to a Trust without attracting gift duty was removed.

However, the rules relating to means testing for rest homes have not been brought into line with the gifting changes. These will still only recognise a gift to the amount of $27,000 per annum.

What does this mean for you? It means that if you have a $1,000,000 loan outstanding to your Trust, youare able to forgive the [...] Continue Reading…



Home Link Finance

Investors can still claim depreciation

Posted on November 24, 2011 by Tina Webb Comments Off


The following information was supplied by Valuit, Specialists in property valuation

Depreciation – now every reason to claim and no reason not to! Over recent years a couple of things have held many investors back from claiming their full depreciation entitlement, and accountants from recommending it.

Uncertainty over what IRD would allow to be separated from the building such as electrical wiring and plumbing AND
The thought of having to repay a majority of the depreciation through depreciation recovery when selling.

BUT these two hurdles have been removed leaving very little downside to claiming your full depreciation entitlement.

Recent Changes summarised

Budget – May 2010

As was [...] Continue Reading…



Accounting news

Structure guide for property investors

Posted on November 6, 2011 by Tina Webb Leave a comment


 

Written by Tony Thorne of Thorne Accounting prior to the changes to the LAQC company structure. (I highly recommend Tony who specializes in taxation for property investors)

Still Very worthwhile reading to  research the best investment structure for owning an investment property

Now that loss attributing qualifying companies (LAQC) will no longer exist after 31 March 2011, I have revisited various property ownership options to determine their advantages and disadvantages for property investors going forward so that you are armed with the information to make an informed decision about the best ownership structure for your rental properties.

Information to make a decision

 Before [...] Continue Reading…



Home Link Finance

Passive income – Fact or Fiction?

Posted on October 30, 2011 by Tina Webb Leave a comment


 

People think that passive income is doing nothing all day and making money while they sleep. A myth that a lot of marketers of various types of product happily promote.

There are many takers for these kind of products since most people are inherently lazy and don’t want to put effort into the life they perceive they deserve.

Myth: Money does not come to those who wait for it to fall into their lap

Myth: Money does not come to those who just think they “deserve it”

Fact: Money likes speed

Fact: Money comes to those who act fast on an idea rather than [...] Continue Reading…



Home Link Finance

financial planning the Kiwi way

Posted on October 27, 2011 by Tina Webb Leave a comment


 

From an email received from an unknown but obviously Kiwi writer who must have adapted it from an US written article

Just imagine…If you had purchased $1,000 of shares in Air New Zealand one year ago, you would have $49.00 today.

If you had purchased $1,000 of shares in the AA one year ago, you would have $33.00  today.

If you had purchased $1,000 of shares in Canterbury Finance one year ago,you would have $0.00 today.

But, if you had purchased $1,000 worth of beer one year ago, drank all the beer, then turned in the aluminium cans for recycling refund, you would [...] Continue Reading…



General news, Home Link Finance

10 Steps to getting out of the rat race forever

Posted on July 25, 2011 by Tina Webb Leave a comment


 
Step 1: Assess where you are today
It’s not possible to get where you want to be unless you know where you are today!
Sit down with your paychecks and your bills and get an honest assessment of how much money is coming in and what’s going out on a monthly basis.
Do you have a positive amount or a negative amount? A negative amount means that you’ve got some work in front of you, but if you get honest with yourself and stop spending more money than you make, you’ll have a fighting chance!
Step 2: Control what you can [...] Continue Reading…



Home Link Finance

Gazumped in New Zealand?

Posted on July 25, 2011 by Tina Webb Leave a comment


 
Buying Mortgagee sale properties?
A clause being put in by solicitors and banks on various agreements reads as follows
“If before the settlement of this agreement is effected, the vendor receives a written offer to purchase the property on terms considered by the vendor to be no less favourable than those specified in this agreement, the vendor may by notice in writing to that effect, given to the purchaser, immediately cancel this agreement.”

This means that the first purchaser can be skittled (they call it gazumped in the UK) even though they have gone unconditional and paid their solicitor for a title [...] Continue Reading…



Investment Property info

Qualify for finance using Benefit Income

Posted on June 30, 2011 by Tina Webb Leave a comment


 

One of the banks has just changed their lending policy to include the following types of income;

Sickness benefit,
Unemployment benefit,
DPB, Solo parents,
NZ super,
living alone payments
Surviving spouse or partner pension,
Veterans pension,
War disablement pension
Working for families tax credit.

The following will not be accepted as Gross Reliable Income-

ACC
Bonuses
Non regular overtime

This will help quite a number of potential borrowers, along with the lower interest rates to qualify for a home loan.



Lending products available