First Mortgage Trust
First Mortgage Trust (FMT) was established in early 1996. The primary purpose of the Trust was to establish a vehicle by which investors could deposit money for an interest return greater than one year trading bank term deposit rates, whilst enjoying the security offered by investments in first mortgages. Click here to see application forms & Product Disclosure Statement.
First Mortgage Trust is based in the Bay of Plenty and is located at 15 First Avenue, Tauranga. They have plenty of customer parking available on site. Telephone: 07 578 0754 Freephone: 0800 321 113 Fax: 07 578 3597. If contacting them directly please mention you heard about them here.
First Mortgage Trust is one of the very few New Zealand based mortgage trusts that was successfully managed through the financial crisis that began in 2007. The trustees, and the manager can be justifiably proud of the fact that, apart for a short period during 2008, the trust has remained open to investors to withdraw should they desire and continued to generate good returns. The value of the trusts units has never fallen below a dollar, and no investor in the trust has ever lost any money. To read more about First Mortgage Trust visit their website www.firstmortgagetrust.co.nz.
First Mortgage Trust (as a group investment fund) deducts withholding tax at the investor’s marginal tax rate. For a large proportion of FMT investors this is 19.5%. There is also a PIE (Portfolio Investment Entity) investment option available. The top tax rate for individuals on income from a PIE registered investment will now be capped at 28%, resulting in a tax savings for those investors with a 30% or 33% marginal tax rate.
A popular option is their "Managing Cash in Retirement" option were you elect to withdraw a regular amount from your funds each month. You can download an application form by clicking here. The benefits are:
- You will receive regular cashflow to supplement your living expenses.
- It is simple to understand.
- It provides tax efficiency via either First Mortgage Trust Group Investment Fund or First Mortgage Trust PIE Trust.
- There is no establishment fee.
- You have security in the knowledge that the funds are secured by first registered mortgages over land and buildings in New Zealand with conservative Loan to Valuation Ratios.
- Your investment is supervised by an independent trustee company.
- You may request that the arrangement be varied or terminated at any time.
Mortgage trusts are one of the oldest examples of a collective investment vehicle. A mortgage trust ‘pools’ the money of investors then selects investments (which are funded out of the pool) in accordance with a Trust Deed. The attraction of a mortgage trust is that it allows investors to do collectively what they otherwise generally cannot do individually, either because of lack of time, expertise, sufficient capital, or any combination of these factors.
First Mortgage Trust lends on commercial, residential and farming properties.
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