just got valuation back

[Absolutely!]

Registered valuation on the place I bought at xmas last year - valued 50,000 over what I paid for it. I spent 20k on it between jan and march before moving in, so that's net increase of 30,000. I think my deposit was something like 30 000 - so that's a return on investment (not including my time) of 100%

Not bad for 3 months' renovation work. Although I won't take any papers at varsity over the summer semester next time...

[gamgee]

I'm lost.
If you put down 30k, and spent 20k, that's 50k. Break even if you could sell it for that.

If it's valued @ 50k over what you spent, then is worth 100k. Or am I missing something?

And what are papers at varsity?

[Absolutely!]

oh dear sorry.

Purchase house - price, 80,000.
Deposit, 30,000 - my equity
do up - 20,000 - again, my equity

Mortgage, 50,000

Revaluation: 130,000
Repay mortgage (50,000) = 80,000
Retrieve my 50,000 initial equity investment = 30,000

so net gain: 30,000.

So I spose I lie then. I should've included my $20k in the original equity outlay.

My investment was 50,000 so my return on equity was 30/50 = 60% tax free over the period from dec 23 to Nov 5. Less than 11 months.

Varsity - university

[gamgee]

Got it. Good for you, Abs. You're on your way to your first million.

[Mayaca]

Well we put new curtains in the living room. (The neighbor bought a refrigerator and the box was JUST big enough to cover the big window.)


*And THAT beyoches is how you make a 1000th post.

[Absolutely!]

very very happy. Bank will now probably give me the loan on the next place.

[arrowNZ]

very very happy. Bank will now probably give me the loan on the next place.

Where abouts are you looking at for your next place ?
Last year I sold all the prime land I had and brought in a less valued area and got way more bang for my buck so to speak.
When I eventually have everything complete I will have more for less than half of what the previous property was worth.

[UnderTheStars]

That's great, Abs. You're a mogul now!

[Absolutely!]

Got it. Good for you, Abs. You're on your way to your first million.

Yeah streaking ahead. At this rate I'll be a millionaire by the time I'm 650.

Where abouts are you looking at for your next place ?
Last year I sold all the prime land I had and brought in a less valued area and got way more bang for my buck so to speak.
When I eventually have everything complete I will have more for less than half of what the previous property was worth.

next place is closer to town, by about 10km, in Naenae. It's in a bad way, but my offer is about 100k under gv so there's room to move. the only 3 bedroom house in Naenae under 200k.

and only one of about 5 under 300k.

That's great, Abs. You're a mogul now!

Oh hey, I can live out my dream of slaving my guts up till I die.

[arrowNZ]

Yeah streaking ahead. At this rate I'll be a millionaire by the time I'm 650.



next place is closer to town, by about 10km, in Naenae. It's in a bad way, but my offer is about 100k under gv so there's room to move. the only 3 bedroom house in Naenae under 200k.

and only one of about 5 under 300k.




Oh hey, I can live out my dream of slaving my guts up till I die.

Thats the downside to big city living, The closer to the centre the more expensive it becomes.
Naenae is not to bad of an area from what I understand. We have friends in Petone and they seem to like it and if memory serves me right they picked up a refurbished state house with good section for around $240k about 2 years ago.

[rab]

I found a mirror in a house I was demoing. Someone offered me a hundred bucks for it. Most likely from circa 1900 to 1910.

Net investment 0
Net sales price unknown
Net profit. Something

Way to go brigdie

[Night]

So how does it work there Bridgie? Since you have a net gain on the house does that increase your taxes by that percentage? Or do you even pay real estate taxes there?

When they re-evaluate our taxes here they always try and jack up the house valuation price so they can suck more tax money out of us.

[Absolutely!]

So how does it work there Bridgie? Since you have a net gain on the house does that increase your taxes by that percentage? Or do you even pay real estate taxes there?

When they re-evaluate our taxes here they always try and jack up the house valuation price so they can suck more tax money out of us.

there is no capital gains tax on residential property provided it is your personal home.

this is fair, too; becauase if I move from one town to another, I will be selling and buying in the same market. So I sell over here, and I need the same amount of money to go straight into the house over there. If someone taxed it going through it would shrink, and I would not be able to get like for like. So in short I would lose money. Also if they were going to tax my capital gain, surely they would be obligated to give a tax refund on all mortgage i paid? I don't think it would be fair otherwise.

If I were buying it as a rental here in NZ, I still have no capital gains tax provided I hold onto it for longer than 2 years. (under the current laws that is, and they have just changed.) If I sell it in 2 years the gains are taxed, so people who do up houses for a living will be taxed on that income. So basically I am going to have to declare that this is my home, not a business, and that I am moving for some other reason than getting money; which is true. I need a bigger place.

In general for something like this I am taxed based on how I set myself up. So if I set it up as a company, i would be taxed at the company rate. If I set it up as a sole proprietorship I would be taxed at whatever my tax rate ended up at the end of the year after including the gain. So it would be my wages, and then the purchase. I don't know about withholding tax; no idea. But certainly at the end of the year if you owed tax you'd be expected to pay.

[Absolutely!]

Thats the downside to big city living, The closer to the centre the more expensive it becomes.
Naenae is not to bad of an area from what I understand. We have friends in Petone and they seem to like it and if memory serves me right they picked up a refurbished state house with good section for around $240k about 2 years ago.

That is seriously a good deal for Petone, even a couple of years ago. It's probably worth 350 now. Petone's on the foreshore of the harbour and only 11 mins from central city outside rush hour. Only about 22 mins in rush hour.

It will of course be the first to go when the big one hits, whereas I'll have 20 mins to get to higher ground. I think my place is good for a 440 yrs flood or something mad. I got the council flood reports before I put in my offer.

[Night]

Real estate taxes abs. Do you pay real estate taxes every year based on what your property is valued at?