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.

LTC movements

Gershwyn asks:

Looking for a bit of advice... The house we live in (house 1) is currently owned by our family trust and has an outstanding debt of around $200,000 (GV $600,000). We bought a rental property (house 2) last year that is owned by our LTC and has a debt of around $600,000 ($GV $700,000). Next year we are looking to move into house 2 and make that our family home and rent out house 1.

Living in a property owned by the LTC does not appear beneficial as I would like to transfer most of the debt to house 1 and have less debt on house 2 when we move. So would it be better to change the ownership structures and have house 1 owned by the LTC and house 2 owned by the trust or leave the structure unchanged? Our intention is to keep both properties long term with house 1 eventually providing a passive income after we retire in 20-25 years time.

Read the answer from our expert »

Interest deductibility

A asks:

Many years ago we purchased a property in Auckland for $350,000. With the current GV above $570,000, how can we claim tax benefits on the higher value?

Read the answer from our expert »

Right time to invest?

Richard asks:

My wife and I (in our late 30s with two young kids) are looking to buy an investment property by using equity on our family home. We have pre-approval from the bank for up to $550,000. This would be our first investment property but our plan is for long term investment and building up a portfolio. Our question is whether it is a good time to buy an investment property in the boom market.


Read the answer from our expert »

Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer