01-12-2008

December '08 Issue

1. News
2. 2008
3. December

Many were saying a year ago that New Zealand would never see cash flow positive properties in the market again.

Well they are wrong. With house prices and interest rates falling, cash-generating properties are starting to reappear.

As we end 2008 and move into next year, the cliché ‘cash is king’ is coming back into fashion.

With little likelihood of capital gains in the next couple of years, investors now need to concentrate on cash flow.

Our lead feature this month looks at how to find cash flow positive properties and also how to create it by renovating your existing properties.

We also have examples of how to calculate cash flow and what aspects of a property that makes a good cash cow.

Another current topic is those dropping mortgage rates. If you find yourself in a high fixed rate, it may be cheaper to break the existing loan and re-fix at a lower rate. Even with the break fee included, it could save you money.

We have seven must-do tips for undertaking renovations in turbulent times. When things are tough, even more diligence and care is needed.

In our beginners’ series we look at the question of managing your property. Being responsible for managing tenants can be a daunting task and there are lots of things to consider when deciding to do it yourself or delegate to a property manager.

What most of us have been taught about risk is wrong. Michael Yardney dispels the myth of risk and encourages a different way of thinking that will help you generate wealth.

We also spend a day in the life of full-time landlords to find out what it really takes to get the best out of your portfolio – and tenants.

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Also in the December 2008 issue:

• Opinion: Find out what The Landlord has to say
• News: National considers RTA changes; Insulation subsidy short-term; Positive signs from investors; Flat-fee property management in NZ
• Housing commentary: Some regard the latest housing statistics show the market is beginning to recover but that might be looking at things through rose-tinted glasses
• Ask an expert: We answer your burning property investment questions. Can landlords do maintenance to the outside of their property without notifying tenants beforehand?
• Profile: Patience, prudence and passion is what drives Nelson investor Glenn Morris. Heavily involved in the local PIA and running his own property management business, Morris has a lot to offer fellow landlords and investors
• Accounting: Is it possible to buy land with the "ultimate" purpose of selling it and not be taxed on the sale? Mark Withers looks at a High Court case
• Mortgage: Breaking out of fixed rate loans may be a better option than staying put for many investors. Jonathan Michell does the numbers
• Economics: It appears the seeds of a recovery are slowly being sown, but when they will start to flourish is anyone's guess
• Valuation: Be realistic about your valuations, everyone is in the same leaky boat
• Property management: Pat Allen summarises his top five tips to get your investment properties off to a great start in 2009
• Legal: Summing up the last of the amendments to the RTA affecting tenants and landlords
• Regional review: Manukau City - This young and diverse city has exciting opportunities for investors with many new developments planned
• NZPIF: News and events from around the regions, plus pics from the annual conference held in Rotorua
• Mortgage commentary: Dropping mortgage rates have caught many people fixed in higher terms, but savings are still an option