The investigation of investment property is proving more interesting in New Zealand.
Here are a few interesting facts on being a landlord in New Zealand.

1. Tenants direct deposit their rent into your account either every week or every two weeks. I think that’s great, you know when your tenants are not paying on time, don’t have to wait a month!
2. Average property management fee is 8% per month.
3. New Zealand has a “Tenant Board” (not the correct name) that acts as an administrator and oversees and landlord tenant problems. This means you never have to go to court to collect your fees. The property manager goes before this board.
4. Finally, these properties are great for cash flow!

There are plenty of tenants for investment properties in New Zealand. Some foreign investors rent out property as “holiday homes” for a season, others rent out the properties for the long term. So far, so good. This is a great country!

Sun Life Financial released a survey in which 22% of respondents said they had to retire earlier than they expected - by seven years.

Layoffs and corporate downsizing were most often the reason for early retirement. Other reasons for leaving work included illness, injury and family obligations.

Workers forced into early retirement were far short of their savings goals, with 55% saying they retired before they were eligible for social security benefits.

All the more reason to take control of your financial picture, now! Use that IRA or 401 (k) to compound wealth with investments you know, understand and control!

Visit The Entrust Group to find seminars near you!

Greetings from Down Under! I’m here in New Zealand investigating how successful foreign investors buy real estate. Captivating, beautiful scenery, lush gardens, ocean delights and cash flow! What more can one ask for?

I am meeting with an American investor who has purchased six rentals in the North Island of New Zealand. Why would she do this instead of buy in the U.S.?

Barbara has been a real estate investor for 20 plus years and owns both residential and commercial property in the U.S. She decided several years ago to diversify her portfolio by investing outside of the U.S. After quite a bit of research, she chose New Zealand because of the value of the New Zealand dollar to the American dollar, and the promise of property values increasing. Barbara bought her first property when the exchange rate was 40 cents to the U.S. dollar. Today, it’s 70 cents. Not only has Barbara made money because of the currency fluctuation, she’s made even more as the property values have gone up dramatically.

Barbara rents five of the homes to permanent residents. One other home is rented by the day, week, and month. The cash flow that she receives from these properties more than pays for her visits here and the expenses of property management and maintenance.

If you have ever thought about buying property abroad, here are Barbara’s suggestions:

1. Spend time getting to know the country.
2. Know why you want to invest in that particular country. For example, it was important to Barbara that she invest in a country where the primary language is English. This way, she would not experience a language barrier.
3. Investigate property laws of the country, keep up to date on their economy, and determine if they are friendly to Americans.

Good advice! More to come on Barbara and other international investors.

Lisa

P.S. Another big factor in New Zealand…..no capital gains tax!

Pick up today’s issue of the Wall Street Journal. They have an article on short sales for those of you looking for deals, one on how banks are becoming flexible when people are getting behind on their payments with ideas such as offering to extend out the loan, refinancing, etc. Good ideas can be had from these two articles! Let me know what you think. Depending on your market, this may be the opportunity you are looking for!

Successful realtors and financial professionals have learned how to develop referral networks by providing excellent customer service. They continue to interact with their clients and get feedback long after the sale.

Here are a few ideas to use that will help you gather this valuable information. Use this to assess your strengths and weaknesses, and make necessary changes, especially if you wish to grow.

• In a focus group, past clients are invited to provide you with face to face feedback. Focus groups allow you to analyze the subtlety of the messages communicated.
• Online survey services (such as Zoomerang) are more factual and are slightly less interpretive.
• Newsletters allow you to consistently survey your current and potential customers.

Providing outstanding customer service will enhance your business and bring more referrals. Your answers to the following questions will give you some ideas:

1. Do you know what’s most important to your clients? Is it top dollar, follow up, quick closes, or having connections?
2. What is the #1 thing your clients say about you?
3. How do their needs and wants impact your business?
4. Are you positioned with the proper tools to stay in touch, such as a web site, email, cell phone?
5. How often do you contact previous clients to ask for referrals?

By keeping your eyes and ears open, and developing the right communication style, you will go a long way to becoming a more professional and profitable realtor. The secret is to make your customer happy….and the rest will follow!

I met with Adriane Berg today. Adriane is an expert in aging and longevity, financial and estate planning. She is a well respected columnist and TV personality. Adriane specializes in coaching Baby Boomers in getting set up for a comfortable retirement.

Adriane is a true visionary in the retirement field. She also believes that one true wealth building strategy is what she calls the “Real Estate IRA”

Adriane mentioned that investors have the ability to put their IRA money into a wide range of investments, including stocks, bonds, mutual funds, and treasury certificates. But they can also invest in real estate, mortgages, deeds of trust, limited partnerships and other alternatives, even putting a retirement home in an IRA.

Here were just a few of her most recent recommendations:

1. If you can convert your IRA to a ROTH, do it!
2. Once you have done this, buy that highly appreciated property with no concern over the tax issues, since this is a tax free investment.
3. Don’t forget “women as matriarchs are concerned with leaving a legacy. Real Estate does just that.”

It was terrific to see how supportive Adriane was of self-directed retirement accounts. Adriane mentioned that The Entrust Group was her number one choice for self-directed retirement plan administrators.

To learn more about how to convert your traditional IRA to a ROTH or to get other information on the right self-directed retirement plan for you, visit The Entrust Group at www.TheEntrustGroup.com.