Rentals not necessarily as good as they seem. Rental property is sometimes an excellent investment. There, I’ve said it, for all those who reckon I’m anti-rentals! Often, though, rentals are not quite as good as people think — and not just because the tax breaks are over-rated, as I said in my last column.
Rental property tax breaks don’t amount to much. I don’t get it. Politicians and economists have been complaining lately that rental property has tax advantages over shares. It’s hardly a new claim. But what are these advantages — beyond depreciation, which is vastly overrated?
Q&As: Young couple take a break from work; Some other options for the couple in the column two weeks ago.
Q&As: Where to from here for 56-year-old rental property owner?; Should rich people be writing this column?
Q&As: Man with many rental properties does it the right way; Why do economists bother to make foreign exchange forecasts that are often wrong?
Scattering the seeds: By diversifying, you reduce risk but not returns. Also in this issue: From the Mailbox — Some people over-save for retirement.
‘His & Hers’ investment styles: How gender affects the way we invest. Also in this issue: From the Mailbox — Borrowing to invest, eg in a rental property.
First things first: How much should you invest in bonds, shares, property and so on? Also in this issue: Great Debate: NZ v international shares.
Getting into gear: Borrowing to invest makes a good investment better and a bad investment worse. Also in this issue: Great Debate — Fixed v floating mortgages.
Terms of enrichment: How long you want to tie up your money affects what you invest in. Also in this issue: Great Debate — Shares v rental property.