Those phone calls offering 'tax savings'...

**Oakie** · 20th January 2010, 07:06

Like everyone I guess we get calls from people supposedly doing a survey on home ownership 'what's your house worth, what do you earn, how big is your mortgage, do you want to save tax?'. Followed up with a call offering to set up a meeting to discuss hoe you can save taxes. I have my own suspicions but has anyone actually met the guys and found out what their scheme is? Just curious, that's all.

**Mully** · 20th January 2010, 07:59

I'm not sure how the tax one works, cos they will never tell unless you sign up (alarm bells started ringing). If I had to guess, I'd say it was putting your house into an LAQC and renting it to yourself (which doesn't legally qualify for a tax deduction anyway)

The one offering to save you thousands on your mortgage is a revolving credit mortgage that they wont call a revolving credit mortgage (even if you specifically ask them) and will generously only charge you $5000 to set up (which, conveniently, you can put on your new mortgage with their choice of Bank)

**yachtie10** · 20th January 2010, 08:34

Mostly they want to show you how to buy a property and claim the losses on your personal tax
You then make money on capital gains

pretty standard stuff i can explain to you for free if you want

**crazyhorse** · 20th January 2010, 08:38

Originally Posted by yachtie10

Mostly they want to show you how to buy a property and claim the losses on your personal tax
You then make money on capital gains

pretty standard stuff i can explain to you for free if you want

I recently bought a house, and friends of mine in Wellington suggested that I rented it out - and it was a good way to work it by paying the mortgage and running it at a loss - or something like that, but I needed to have a roof over my head, so didn't think I could run the risk of renting it out and still paying rent to someone else, not with the size mortgage I got, but from what he was saying, yes, it sure is a good idea.

**Headbanger** · 20th January 2010, 08:47

I would have told them to go fuck themselves halfway through the very first question.

**imdying** · 20th January 2010, 09:35

Originally Posted by Headbanger

I would have told them to go fuck themselves halfway through the very first question.

Same, except they got as far as the second with me. None of your business... click...

**Mully** · 20th January 2010, 09:48

Originally Posted by yachtie10

Mostly they want to show you how to buy a property and claim the losses on your personal tax
You then make money on capital gains

pretty standard stuff i can explain to you for free if you want

Ohhhhh!

Leveraging the equity to buy a rental. Of course.

Duh, don't know why I didn't click to that.

Lotta people been burnt doing that lately.

**Edbear** · 20th January 2010, 09:52

They will be after money, and their fees are high. As has been said, they won't tell you anything your accountant can't and he'll probably give it free. I looked at LAQ's a while ago and decided against that route.

Best advice ever given was to save 10% of everything you earn.

For long term savings that are the most secure, use the bank's 100 day term deposits and compound the interest every 100 days. It will build up your savings quickly using the bank's interest and is unlikely to disappear as on the stock exchange. At the end of the year you can reinvest less a cut for your holiday.

**Grumpy Gnomb** · 20th January 2010, 10:22

what gets up my gander is that you tell them to go away in a nice manner and then a couple of months later they call back and want to talk about it again. hardly likely you are going to change your mind,so you gently remind them you already told them to go away once before as this time F...k O...F

**duckonin** · 20th January 2010, 10:27

Originally Posted by Edbear

They will be after money, and their fees are high. As has been said, they won't tell you anything your accountant can't and he'll probably give it free. I looked at LAQ's a while ago and decided against that route.

Best advice ever given was to save 10% of everything you earn.

For long term savings that are the most secure, use the bank's 100 day term deposits and compound the interest every 100 days. It will build up your savings quickly using the bank's interest and is unlikely to disappear as on the stock exchange. At the end of the year you can reinvest less a cut for your holiday.

But you pay 25% of your earnings to the Govt..

**steve_t** · 20th January 2010, 10:32

Yeah!! Buy a rental property where the rent received is about half of the mortgage repayments and then put 90% of your disposable income into the rest of the mortgage repayments. That way you spend $1 (which you've worked for and already been taxed on) to save yourself 30c in tax

Today is an especially good day for this thread cos of this http://www.nzherald.co.nz/business/n...ectid=10621135
"Today's final report from the Victoria University Tax Working Group could see multi-billion-dollar changes for property owners, landlords and investors......"
Time to be patient and wary about property investment until things get clarified

**Edbear** · 20th January 2010, 10:35

Originally Posted by duckonin

But you pay 25% of your earnings to the Govt..

Are you talking about PAYE? That may be so, but take 10% of your gross earnings, take 10% even from stuff you sell, and stick it away in a savings account. RWT on interest earned isn't as high as fees charged for investing through these investment companies like manage funds, etc.

Having that 10% put aside means you can account for unplanned bills that come in, like Dentist, etc.