Finance & Strategy Expert

Finance & Strategy
Ask Kris Pederson, director of Kris Pederson Mortgages questions relating to Mortgages, Finance, and Strategy

Kris is a respected commentator on the property and finance markets in New Zealand and overseas. He spends his time working closely with his support team sourcing clients leading edge finance strategies.

Trans-Tasman investment taxes

Geoff asks:

My wife is from New Zealand and I am Australian and we are based in Sydney. We are looking to invest in New Zealand property. To that end, are there any tax issues that we need to be mindful of in doing so? Any other general advice to consider when in this situation would be appreciated too.

 

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Safe strategy

Mary asks:

I am 48, single and a contractor so, while I always have work, it's never a certainty. I own an apartment in Freemans Bay (cv $515,000 so the value is probably high sixes) that will be fully paid off in five years. I owe $128,000 on it.

I recently bought my first investment property for $597,500 on an interest only loan. My plan is to buy another rental once my place is mortgage free, put the new place on an interest only loan and start paying off the first investment property. Is this the right strategy?

What are the tax ramifications of starting to pay off an investment property? 

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Getting the right loan structure

Adam asks:

We are just checking in to make sure we have the best loan structure in place for our properties. Our plan is to buy and hold all of our properties as a future income and for our retirement.

We currently have a mortgage free home worth $2 million which we plan to live in for at least another 10 years.

Additionally to this, we have a unit valued at around $800k with $650k owing on an interest only mortgage. This is loaned into the main income earners name that pays the most tax. The property is rented out at $495 a week so it is negatively geared at the moment.

We have just purchased a home and income for $985k valued at around the $1050,000 mark. This is returning $930 per week and is cash positive under the current interest rates as we will be putting $85k down on it so we only have a mortgage of $900k. We are looking to put this into the main income earners name as well.

Are these the best options for the best tax advantages and the best way to set it up? 

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