PROFESSIONALS SALES AWARDS 2010
Once again it was a 'clean sweep' for the dynamic, award-winning Lochore's Sales Team !
FIRST HOME BUYERS SEMINARS
Now is a great time for first home buyers to enter the market - Lochore's have tailored a First Home Buyers Seminar, where you can learn all you need to know from property experts about taking that first step on the property ladder.
FREE INVESTPAK PROPERTY INVESTMENT SEMINAR'S
 with PAUL LOCHORE
Paul Lochore, Managing Director of Lochore's Real Estate in Birkenhead with over 44 years experience in real estate, is actual proof it is not only possible but achievable for most New Zealanders to retire wealthy.
Come and share Paul's story and discover how you can achieve financial success through residential property investment.
Lochore's Real Estate are proud to have assisted many hundreds of clients to become independent and wealthy through property investment. This is a personal invitation to attend our FREE INVESTPAK SEMINAR.
Our seminars are free and are held on Wednesday's 7.30pm at The Professionals 100 Mokoia Rd, Birkenhead
Call Sonya on 09 481 0639 for the next seminar date and to register
NO BAD NEWS IN THE BUDGET FOR RESIDENTIAL PROPERTY OWNERS & INVESTORS
By PAUL LOCHOREWith all the rubbish and hype that's been in the news since Christmas, no major ramifications have come out of the budget except a few minor re-alignments for the average investor. I find it amusing that all the spin doctors from various institutions who have been predicting massive changes to the system such as capital gains tax, land tax, ring fencing of investment property etc now have egg on their faces.
The upshot is depreciation for chattels on new and existing properties is still claimable, however building depreciation of around 2-3% will be removed from the start of the 2011/2012 tax year.
Owners of commercial property will be affected negatively with regards to the depreciation on the buildings and will be the biggest losers under the new changes.
There are also changes to 'loss attributing qualifying companies' (LAQCs). These will now be taxed as a limited partnership so the tax will be evenly split at a rate of 33%.
I've never believed in having rental properties in trusts particularly for tax reasons - these will now be taxed at 33%. Income tax has come down for everyone - check out taxguide.govt.nz to see how the changes affect you.
With all the garbage we've heard i.e. land tax, depreciation costs etc not much has changed. Some economists and commentators have a lot to answer for.
Where to from here?
In my opinion property values will not drop as there is an underlying shortage of residential properties that will continue for some years to come as the developers have virtually disappeared from the building scene due to lack of finance or lending facilities, which is mainly due to the collapse of financial institutions in New Zealand. (Evidence of this can be seen in the Reserve Bank Home Loan approvals chart below.) I would be surprised to see banks lend money to major developers in the next two to three years.
This will compound the shortage and, together with the increase in GST, house prices should start climbing in the near future as the shortage bites. I believe this is a very positive budget and property owners will make good capital gain over time as they've always done.
My final point is if you did have surplus money, where would you put it? With the collapse of finance companies and public companies, and fluctuations in the sharemarket, where is your money safe? Your only choice is bonds (which can be risky) or property. The average house in major metropolitan areas has on average doubled in value over ten years and will continue to do so in my opinion.
Anyone who buys residential property should always be buying for the long term (minimum ten years) and the rental return will look after itself over that period of time. Rental return is important for serviceability but the real gain remains the same - capital growth.
If you're interested in investing in property, come along to my next free Investpak seminar. To register, call our sales office on 481 0639 or email us.
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