All Topics / General Property / would u buy in an area if there are 35% that rent

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50
    October 20, 2003 - 10:18 am

    Hello everyone,

    Was just wondering if it was a good idea or not to buy an IP in an area with 35% renting.

    Would also like to know when structuring, if I were to buy the majority of my IPs in New Zealand, should I set up a Trust in NZ, or here where i live or would i have to set up two Trusts. One here and one in NZ
    I read Wealth Guardian but it didn’t mention if you invested o/s.
    Thanks to anyone who can help

    Profile photo of MelanieMelanie
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    @melanie
    Join Date: 2003
    Post Count: 382
    October 20, 2003 - 10:57 am

    Hi Mitzu,

    The average home ownership in Australia is about 62% so 35% rentals is right on the average so I’d worry more about the no. of vacancies in the area you’re looking at than the no. of rentals available.

    Regarding o/s investing, from what little I know about NZ it’s best to set your loans up there with NZ banks, maybe some online accountants can help you with the structures.

    [:)]
    Mel
    [email protected]

    Profile photo of westanwestan
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    @westan
    Join Date: 2002
    Post Count: 1,950
    October 20, 2003 - 12:01 pm

    hi melaine and mitzu

    melaine i don’t know for sure but i think the figure in aust. is about 25% rent whereas in NZ it is about 30% rent.?

    Mitzu
    i know some in Oz are setting up trusts in NZ. i’m using my trust from here to buy through and i’m not having any problems. as melaine said the only way to get a loan is in NZ.

    regards westan

    Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50
    October 21, 2003 - 12:02 am

    Hello Mel and Weston,
    Thanks Mel for that advice. I was told at a seminar that you should never buy where there is more than 30% that rent. Obviously that was a different situation to what I am looking at now.(positive cashflow)
    Weston after reading your advice I think since I am aiming to buy more in NZ and will retire in NZ it might be best to set up over there. Thanks for your help.

    Profile photo of ErikaErika
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    @erika
    Join Date: 2002
    Post Count: 151
    October 21, 2003 - 12:49 am

    Hi All
    I would have thought that areas with high number of rental population is good, wont this mean that there are always people looking to rent. I Agree with Mel that it is more important to look at vacancy rates,high vacancy rate even in a high rental area is not good.
    Erika

    Profile photo of mitzu5mitzu5
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    @mitzu5
    Join Date: 2003
    Post Count: 50
    October 21, 2003 - 12:54 am

    Hey guys,
    Is ringing the Real Estate Agent the only way of finding the out the rental demand?…..I heard some agents can tell you what you want to hear.
    [:)]

    Profile photo of BlackfishBlackfish
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    @blackfish
    Join Date: 2003
    Post Count: 1
    October 21, 2003 - 4:55 am

    mitzu5

    Classifieds dont lie

    You could also try ringing the agent and pretend to be looking for a rental

    Profile photo of mitzu5mitzu5
    Participant
    @mitzu5
    Join Date: 2003
    Post Count: 50
    October 22, 2003 - 8:58 am

    thanks blackfish,
    will try the classifieds. They certainly don’t lie.
    [;)]

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