• Tweet
• Email

PROPERTY UPDATE BY DEAN LETFUS

Well we finally got the budget delivered. Here’s the main points for you and I.

So Bill English has shown a complete lack of historical research or common sense in attacking the tax base so aggressively and stating hearsay as fact in the budget.  Still he has the Microphone so we just have to bend over and obey.

1.  Personal income tax down across the board. A carrot to offset item 2. 
Top tax rate down to 33% which helps the rich invest more so that is good for finders and traders.  
Company tax down by 2%, which is better than a poke in the eye.
Trusts left at 33% to attack property investors

Overall this is designed to keep votes.

2.  GST up by 2.5%
Will unintentionally increase poverty and has no benefit to NZ at all except to add to government coffers.
I think this is a tragedy for poorer NZ

3.  Depreciation gone completely for any property that is expected to last more than 50 years.  A stupid nonsense approach designed solely to attack property investors.  Cash-flow pretax is now King, Kong and Superman.
  Also a 20% decrease in depreciation rates on new chattels.

4.  No mention of ring fencing etc. so that is good

5. Whilst not made clear at the budget reading there have been changes to tax treatment of LAQC’s making them virtually useless as a vehicle.  They are now being treated the same way as limited partnerships for tax purposes.

SUMMARY

LAQC’s are basically over as useful vehicles and we will have to move to trusts or own name ownership.
Fewer tax breaks for investors through depreciation but we knew that.
Property a cash-flow play now meaning likely increases in rents.
Nothing in budget to attack housing values.

Overall pretty good for anybody already doing what I have been recommending for the last 12 months!

So get out there and buy your next investment before the market recovers.

CASHFLOW ALTERNATIVES

As many of you know I have over the last 2 years or so spent a lot of time and money getting educated about online businesses and the internet.  As a 47 year old my idea of the internet was all about porn and spam and I never really took it seriously until I learned more about it.

I have to say I was truly stunned to discover this huge world online that I didn’t even know existed.  And the money washing around in it is amazing.

For example in 2010 Americans will but $157 BILLION worth of travel related services off the internet.  And there are 1.8 BILLION people online all able to buy products and services without geographical boundaries.

I am telling you this because I am now making as much money through a couple of simple websites as I do through owning a $300,000 property.  There is unbelievable opportunities online but it can take some time to get your head around it if you are over 20 years old.

I am finding it to be a rock solid alternative for cashflow and if you take a shine to it you might not ever do property again .

You can buy and hold online businesses, you can trade them, renovate them and develop them, ALL WITHOUT MORTGAGES.

I am serious enough about this to engage the services of Shaun, who many of you know, who help me show you how this all works.  (If you don’t know Shaun is a leading interet marketer who retired a multi millionaire at 22, no bull)!!

So if you’re in NZ I’d love to catch up with you next week, details HERE

And if you’re in OZ I’ll be there in a couple of weeks, details HERE

So if I can’t talk you into continuing to invest in property, at least come and find out about an alternative retirement strategy that ANYBODY can do!!

MINDSET SCIENCE BY DEAN LETFUS

I saw a comment from someone recently that blew me away.  They had joined a programme that had a strong educational component and as they got educated they would create pretty significant income.  It was a sound company and the income was pretty much guaranteed, it just took some time and education as I said.

So this person was 2 weeks in and decided he was going to “chuck it in” because it “didn’t work”.

I literally couldn’t believe that this level of victim and poverty mentality could reside in one person at the same time.

It highlighted to me just how deceived we can get if left to our own frame of reference without the intervention of reality.

It’s a bit like my online stalker who rants and raves about total nonsense. I literally laugh out loud as his feckless babbling but I am so sad for him that his world is so tiny and dark that his only way to cope with his pain is to tell lies to nobody about me.

So given that we all will have areas where our view of reality is wrong how do we identify those things and start to shift them?

Way easier said than done I have to admit but let me give you an underlying principle to get you started.

We are designed for intimate relationships.  We are meant to have close friendships with people who know us well and who speak into our lives.  This means that when we are getting off track those who love us can tell us so we can be corrected.

Sadly few of us have this.  Nearly all of us isolate and in modern society it has become possible to have no close relationships at all thanks to technology.

So if you want to find out those areas where you believe lies or are just plain screwy you must start by developing a close friendship with your spouse or other significant person and give them permission to speak into your life.  In fact it is impossible to have a close relationship where you don’t both speak into each others lives so this will happen in time.

For example my ex friend stalker is the butt of jokes amongst everybody I interact with.  However none of them are close enough to him to tell him how weird he has become. That is tragic for all concerned.

I friend who loves you enough to tell you the truth will forever change your life and your world view.

Want to avoid deception, get into a truth relationship as quickly as possible and learn to listen

You know the rules, stay INSPIRED and Stay SAFE OK??