At GRA we have become concerned at the number of people thinking about buying leaky buildings. This was brought to our attention in our capacity as Professional Trustee, which means we (along with any other trustees) need to sign off on any planned property purchases for the trust clients we act for.
We were concerned when we found out about the first person but became alarmed when, over a matter of weeks, we had multiple clients say they were planning to buy leaky homes. As explained in Property School and in Matthew Gilligan’s book Property 101, we consider leaky homes to be ‘property lemons’ which should be avoided at all costs. When we asked our clients why they wanted to buy leaky homes, they said that the Auckland property market is so expensive they are the only properties they can afford.
While we agree that leaky homes are certainly cheaper to buy, we disagree that they cost less in the long run. In fact, they are likely to cost purchasers significantly more and will quite possibly put them in a much worse position than before they bought them.
There are many reasons why you should avoid leaky buildings – and each of these reasons on its own should be enough to deter you. Combined, they are a financial disaster waiting to happen.The seminar last night was the best I have attended. Your speech was inspiring, professional and interesting. I have followed GRA for a very long time and really love your books Property 101 and Tax Structures 101. I didn't find them in the library of Victoria University and managed to ask the uni to purchase some copies so that students won't miss out these amazing books. - Kardy - December 2017
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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