Where to buy an IP in NZ for under $35K??

Hmmmm okay… this is a tough one but I have heard that the following are selling properties under 50k some under 40k. Check these suburbs out but please remember to think why they are selling them this cheap – has the one and only major business just left town? Has the local gang beefed up their businesses in the area, are all the youth moving out to go to the big smoke.

Lots of questions to find answers to – there maybe people on this forum who are traveling to NZ soon so maybe you can come to some arrangement with them to help you understand more??? I will let those people contact you.

Towns to check:
Tokoroa
Kawerau
Woodville

Gore – too bloody cold if you ask me!

Best regards

Marc

P.s if you have no idea (like me) where these places are try the NZ map I have on the web site.

http://www.propertytalk.co.nz/modules.php?name=Content&pa=showpage&pid=45

hi bridgette,

baby! it’s great to see you here!! yippppeeeeee!!!!!
make sure you do a little looksee on the topic called NZ suburbs in the treasure trove folder, because it’s got heeeeaps of info.

OK yeah tokoroa-
I was semi looking there for a while, at one in particular a while back listed for 30K and rented for 110 a week with sitting tenant, and according to the RE agent (who I really liked the vibe of – jenny lamberton -) was a good tenant. Why didn’t i buy it? Because it was made of untreated timber. eek. And the RE agent volunteered that it was already starting to rot….I was trying to buy structurally sound properties that would last me for a while if i fixed it up and untreated timber just sounded too bad. If my offer would have been accepted i would have proceeded with a builder’s report but it wasn’t. Looking back yep it was a great deal but since I reckon i found even better deals in a town not reliant on one industry – anyway they didn’t accept my offer of 23K (based on research that in that area properties sell for way under GV and that was a fair price) I didn’t get it.

I don’t necessarily think that properties have gone up as such,
since then, – i just think that the cheaper ones have been snapped up leaving the 40K ones and up still for sale.

Keep looking though as traditionally people put houses on the market in spring and summer.

zanis – great idea to contact the police. I accidentally bought a house with a gang member living next door that nobody wanted to rent for 6 weeks. (now rented thankfully.!)
but the weird thing is that i was over there for 4 days renovating it and didn’t notice anything, it was a really quiet cul de sac street and there was an old blind lame dog waddling about, not even a scary one, and people would wave and smile in the street. the RE agent says it was because of it used to be bad 5 years ago but the stigma remains longer than the street is bad. if you get what I mean.

What else – yeh waimate – i have heard there are some businesses going in there so it could be great for capital gain in the future as well as rental demand. the only reason i’m not looking there is that North island is closer to my folks and friends and easier to get to if I need to.

wairoa – yeah don’t forget that unemployed people need housing too, and provided you get a tough rental manager (as many of them are and need to be in those areas) who only take tenants with references, then look at it like, at least they have a guaranteed income! Because it is quite likely that at the bottom of the market in a town like that you might indeed get a beneficiary as a tenant.

Now i have heard horror stories about a certain town in Queensland where landlords make their houses concrete inside and out because aboriginal tenants strip everything including ripping up floorboards for firewood. Now I don’t know if that is racist white people telling stories or true because I haven’t been there to see for myself. But I haven’t heard anything bad like that from NZ.

However……two of the places i bought were off the same vendor who hadn’t done any maintenance for 15 years. they were pretty trashed (though structurally sound – ) in fact bridgette you’ve seen pics so you know what I mean. And in the state they were in they attracted only the lowest kind of tenant because they were the lowest standard of house. Now they are improved the tenant they attract has changed too.

that’s all for now

love Mini

howev

Hi Guys

A report in this morning’s NZ Herald about a study that reveals causes of Auckland housing boom makes a statement that says and I quote:
“The widespread belief that proprty values only go one way -up- is not borne out nationwide. Although real house prices have more than doubled in the Auckland region since 1981(up 11% over and above CPI inflation) they have fallen by 27% in Southland.

In Auckland City they rose 152% over the same period in real terms but fell 50% in the mill town of Kawerau. Over the last 10 yrs prices have had a stronger tendency to rise faster where they were high to begin with…….. In 1981 an average house in Manawatu/Wanganui was worth about 66% of one in Auckland. Last year it was little more than 33%.”

I can hardly wait to see the rest of the report. It should make interesting reading.

Bridgette – There is a big strand dealing with NZ Suburbs already somewhere in the forum. Use your search button and have a look. Also there are a number of web sites listed in it as well that will also give information that you require.
If you are after Capital Growth then you will have to spend big bikkies and buy in Auckland, parts of Wellington. parts of Christchurch and Dunedin which is starting to catch the Auckland bug.

Regards

PS don’t invest in any towns starting with T or W because very few of them are showing any capital growth. They have only +ive cashflow properties if you buy cheap enough.

Muppet,
IF regions don’t have capital growth does it matter if they pay themselves off in 8-10 years.[]
When I look at any deal I see where the money is right now. On the cashflow deals I have money in my pocket from day one. As to the capital growth thing……well there are no guarantees. I’m no NZ expert but cashflow is cashflow.

AS to the W or T thing again the question of CG. If they are tenanted and paying themselves down and provdiing cashflow then that is a good thing. If they are only worth $35K still in 10 years but they have paid themselves off and provide you with $$ every week….isn’t that good ?

Just my thoughts.

Enjoy
AD [:0)]
(Andrew)

It is good to have an end to journey toward, but it is the journey that matters in the end.

Hi AD

Bridgette did say in her first posting that she wanted high rental demand AND capital gain.
Therefore I am saying that these places starting with T and W will have no or little capital gain.
If it is paid off in ten years, yes, you have made $35k but what a slow way of making it. Whereas in a place of capital gain you can make that amount in 6 months. But then again it will take you a lot more money to purchase in a capital gain area.
Six of one and half a dozen in the other.

I have purchased two houses in a T town. One property is let at $155 per week but the other doesn’t have a tenant yet. The PM has been unhappy with the calibra of prospective tenants.
I am not expecting any capital gain, I am after the Steve McKnight method of getting +ive cash flow.

The All Blacks by 105pts

Regards

[]Agree to some extent Muppet. Can you show me a guaranteeed $35K cap gain. Over what time frame. What if the more negative economists are right and we are in for rain.[}] Prices will drop.[] For me I will choose cashflow over gain but in saying that I have bought a few properties under market and fixed and flicked. Horses for courses. Neither ismore right than the other. []

Enjoy
AD [:0)]
(Andrew)

It is good to have an end to journey toward, but it is the journey that matters in the end.

G’day all,

Great thread. Im actually heading off to NZ next Tuesday for a wedding, and figured whilst im there I’ll look at some properties. I’ve already managed to arrange some appointments with RE agents. Ahh the internet, what would we do without it. []

I’m going to travelling the south island, so my research will be restricted to there. If any members of the forum are interested in having a “spotter” look at some properties while Im there let me know and Im sure we can work out something []

I’ll be keen to see what the rental demand is like in the various towns and what type of rapport can be established with RE agents.

Cheers,

Battz