Marks Investing Blog

Someone else’s back is a buy and hold property strategy. It is based around Cash flow Positive properties. The aim of this strategy is to input as little as possible of the owners resources into their properties. Basically the tenants end up financing the property until it is entirely paid off. This will often be over a 25 year period although this will be reduced if the property is considerably cashflow positive since it’s excess income can be used to pay it off faster. Obviously this really only suits Cash flow Positive or Cash flow Neutral properties.

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The Snowball is a buy and hold property strategy. The idea of the snow ball is very simple: purchase enough properties to make the investor financially free once they are all paid off. These properties can be Cash flow Positive, Cash flow Neutral or even Cash flow Negative, as long as the investor has a decent amount available above living costs and any additional costs imposed by these properties. It does work best with positively geared properties.

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A table mortgage is a loan where you spread your repayments evenly over the term of the loan, commonly up to 25 ir 30 years. This means that at the beginning of the mortgage you are paying back mostly interest and only a small amount of principal.

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Many investors have a set of rules which helps them focus effort when searching for property to buy. The rules will immediately create a shortlist of properties to investigate, by eliminating all those that do not meet the criteria.

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It is widely recognised that property (along with other forms of investment) follows a predictable cycle. The New Zealand property cycle has three recognised stages of boom, slump, and recovery.

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Refurbishing your property can put money into your pocket When you do it correctly! So the question is “How do you do it correctly?”

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Questions To Ask Prospective Property Managers – Choosing the right Property Manager to manage an investment property can make all the difference in looking after an investment.
How does one sort out average or poor property managers and ensure a good one is chosen to look after an investment property? Here are some questions property investors can ask to help make that crucial decision.

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One of the problems all too often encountered by property buyers and sellers alike is that, by having to deal with a third party, namely the estate agent, the process often becomes unduly muddied and complicated, not to mention expensive. After all, you buy a property because you want it, certainly not because you like the agent.

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Home staging is the act of preparing and presenting a residential property prior to going up for sale. The goal of staging your property is to sell quickly, and for the most money possible by attracting the most amount of potential buyers.

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Are there a lot of relatively new, highly indebted investors who’ve never weathered a market cooling? That being a possible drop in house prices/values and an interest rates rise? What’s going to happen to them?

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A Loss Attributing Qualifying Company is simply a standard limited liability company, which takes on a tax election, to give it Loss Attributing and Qualifying Company status with the Inland Revenue Department.

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All education is good. Everyone will always be able to learn something at every event attended. Rineke and I (Dorien Forster) have travelled all over the world to attend and be guest speakers at many courses and we’ve found that there are two types of courses;

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Rental Yield is the rental income (Rent) received during a financial period (12 months) less all expenses inherent in owning the property. It is expressed as a percentage and can provide an indication of the rate of return (ROI) on an investment, before tax. This can be calculated either on a gross basis (excluding expenses) or a net basis (including expenses).

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