Island Life by David Slack

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Island Life: Green Acres

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  • Don Christie,

    <strike>fast cars and fast women</strike>

    Same as George Best. He claims to have wasted the rest.

    loss-attributing qualified companies (LAQC's) are the third(?) largest number of company in nzl by type.

    and, they're nothing more than a vehicle for negative gearing of investment properties

    Unless, of course, you happen to be starting up a company for other reasons. In that case an LAQC is a life safer...

    Starting up a business is hard enough without the peculiarities of the property market making things harder, thanks.

    Wellington • Since Nov 2006 • 1645 posts Report

  • Che Tibby,

    in deed. someone pointed out to me last night that laqc are particularly useful if you're planting forests, for example.

    i still want to "write a letter" about subsidisation of housing thru taxation tho.

    makes me a little annoyed.

    the back of an envelope • Since Nov 2006 • 2042 posts Report

  • Rich of Observationz,

    James: the problem with your investment strategy is that if the price of BHP shares takes a temporary dip in May 09, you could wind up losing some/all of your investment. You don't have the ability to extend the term.

    With a house, you can just wait until the price recovers, which it probably will long term. Because the bank won't foreclose on you, you have the ability to be technically "bankrupt" for an extended period without much effect on your real finances.

    Back in Wellington • Since Nov 2006 • 5550 posts Report

  • James Green,

    Rich, I don't see that as a problem, but a clearly defined risk. And unlike a house, the risk is finite. If both the housing market dips, and you have job issues, then you have a liability greater than your initial investment.
    Also, on a 2 year term, I would expect that any "dip" would not take that investment out of the money. A more prolonged change of fortune would, but long before May 09, when you might (or might not) still be able to sell your derivative for something.

    Limerick, Ireland • Since Nov 2006 • 703 posts Report

  • Yamis,

    <strike>fast cars and fast women</strike>

    Same as George Best. He claims to have wasted the rest.

    What was that fantastic story about George Best with the hooker? and pile of money on a bedroom he was in and the question "where did it all go wrong?".

    I think I kind of just said it there...roughly.

    Since Nov 2006 • 903 posts Report

  • Stephen Judd,

    Wellington • Since Nov 2006 • 3122 posts Report

  • Robyn Gallagher,

    I just found 42 mortgagee sales listed on Barfoot & Thompson.

    Some of them look like investment properties that are probably being given up because of an increase in interest rates and/or a lack of tenants. (There's an Mt Eden village art deco flat. It looks nice in the photos, but in reality it's right next door to a service station. Yuck!)

    But other ones look too big to be rentals/investment properties. So what is it that drives someone living in a lovely family villa to end up having the bank sell their house? Interest rates? Bad financial planning? Too many lattes?

    Since Nov 2006 • 1946 posts Report

  • Anne M,

    So what is it that drives someone living in a lovely family villa to end up having the bank sell their house? Interest rates? Bad financial planning? Too many lattes?

    You job disappears.

    Perhaps you were the manager of the F&P factory. Or you had a nice career at TVNZ. Mortgage was a bit steep, but no worries eh?

    Since Nov 2006 • 104 posts Report

  • andrew llewellyn,

    What was that fantastic story about George Best with the hooker?

    To be fair to the late great man, I don't recall that the woman in question was ever described as a hooker.

    Since Nov 2006 • 2075 posts Report

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