My partner and I are selling our Melbourne restaurant and locating back to N.Z.
Before starting another business in NZ we are going to travel around nz aquiring buy and hold positive cashflow proprties, we will put 20% down for each property. We will have a lot of cash but we will effectively be unemployed.
How can we obtain finance when we have no job (will the banks e.t.c give us money based on the fact our properties will be positively geared) ???
Thanks DarrenTry non-bank lenders. Steve introduced a very interesting concept that money follows management i.e sell the deal and you may just find a few investors.
And bankruptcy follows stupidity!!!! [lmao]
So what would you suggest monopoly?
Well Darren,
It depends on one’s risk tolerance, and mine is very conservative. I play it safe (and hopefully smart) that way my risks are minimised!!! Each person is different. But to answer your question, what would I do…..
Initially, I would re-visit my homeland, check out the economic climate; what is the unemployment rate like, what are housing prices like, talk to people about what is happening, even people in here who are buyers for Oz investors they are full of useful info. Basically, I’d do my homework BEFORE I even so much as hinted at selling my business.
Then, and only then, after being completely satisified with my new found information, I’d:
1. Cash up by selling the business here
2. Buy a roof over my head to start with
3. Look for work; sure you may get a loan with or without a job (it’s not impossible, perhaps difficult, but certainly possible). Low doc or No doc loans are a reality, but serviceability is a major issue, even if you like to think you will be fine, the unexpected HAS TO be accounted for!!Establish yourself first, plant your feet on the ground before you try running; otherwise you risk falling flat on your face!!!
I wish you every success.
Jo
thanks for your ideas everyone, anyone else out there with other less conservative ideas, i dont plan on becoming financially free by getting a job.
Originally posted by Darren Hight:i dont plan on becoming financially free by getting a job.
Really??? Now you’ve sparked my curiousity!! How do YOU plan to do this Darren??? I love hearing innovative ideas from those in the know. So please do enlighten me with your aspirations; I’m all ears, and who knows I might actually learn something!!! [biggrin]
With Banks i’ve found that to get the money you firsthave to prove you dont need it (simply), they lend based on you as a risk and thier chances of getting the money back if all goes south..
the more you have in the deal the btter they like it..
As for non-banks they want higher rates..if you dont like it, go back to the banks[biggrin] They however are also risk adverse..no-one likes to gamble without knowing the odds..
Like Monoply i’m interested..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI was lucky enough to recieve excess cash from the sale of assets, i have cash but when i sell my restaurant in melbourne(my last asset) and move back to nz i will effectively be unemployed.
I plan to buy 15 positive properties to begin and then take it from there.
I would rather invest alone than with a partner.Hi Darren
go for it, the market here is still good but not as good as it was months ago. I feel the real NZ potential is buy properties that need to be fixed up. I’m doing a few deals with some people here at the moment where i finance the deals and they do the work and we split the profit.
I’m a bit more aggressive than Jo and like you if i was starting again wouldn’t be keen on doing it the slow way. What part of NZ will you be relocating to. Jo -Just for the record the NZ economy is booming 5% the highest in the OECD (i think) there is very low unemployment which is a real pain for getting cheap labour over here. The expectation is the economy will slowe next year after interest rates were lifted earlier this year. I think the whole country is enjoying the growth (which is nice).
Regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
thanks westan,
i appreciate your constructive comments, they are very helpful.I will be staying with family in browns bay, Auckland to keep my living expenses down, but i will traveling
around the lower south island looking for property.
I cant wait to get back to nz as i am very excited about my new venture and believe there are a lot of opportunities left in nz.Take care
Westan,
What can I say??? You are the NZ expert as far as I am concerned, and if anyone knows how things stack up there, it is people like you, Mini, CastleDreamer, just to name but a few. So if you are giving it the “all clear” then I see no problem.
As for being “aggressive” (as an investor) Westan if only you knew!!! My husband would fall off his seat in fits of laughter if he read that; after all as he sees it, it has taken him (the clever cookie that he thinks he is)[rolleyesanim] years to tame a wild beast and her insatisable hunger for property!!!
Darren,
If you have enough money to buy 15 cashflow positive IPs without needing to work for them, well then, the world is your oyster!!! Maybe you should talk to Westan and get him to hunt you down some deals (for a nominal fee of course).
Again, I wish you all the best in your endeavours.
Jo
Hi Darren
lower south Island is still presenting some good deals but they are harder to find all the time. i’m living in Balclutha.
Jo what i meant by you not being “aggressive” was you often mention how you don’t like having debt, i thought this is part of your strategy to own property freehold, clearly someone willing to take on debt can amass a far larger portfolio in a lot quicker time. Clearly in comparission to the majority of investors you are aggressive, but not as quick as some others.
can you clarify you attitude thanksregards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Westan,
What I have often said is I DON’T HAVE ANY debt, not that I won’t take any on. In fact, I will be doing so in the near future, specifically for tax reasons. The reasons behind my being debt free is attributed to several factors, one is CG of IPs which have enabled me to buy future IPs outright, and at times with money to spare. Prior to getting married, I invested in shares and although I got burnt initially, I made enough money to add to my wealth creation strategy.
You may think that in 23 years of investing my portfolio size would be more substantial, and indeed this is partly true, had I been prepared to take on some level of debt, but after getting burnt so badly in a bitter divorce settlement which cost me 3 IPs and various other valuables, I was happy to plod along at a snails pace.
In terms of property; I never ever buy a property unless it has huge growth potential, and moderate rental yield, but I do admit to being happy to sacrifice some yield for the long term goal of CG, after all, it is what enabled me to retired from the paid workforce at aged 39 (2 years ago).
My assets are not all property related; I only refer to the “bricks and mortar” side of things because that is what this forum is about. I don’t mention shares, business ventures or other avenues, unless specifically questioned.
I hope that clarifies my “aggressiveness” or lack thereof for you. If still in doubt, please feel free to approach me anytime; as I am only to happy to oblige!!!
Cheers, [biggrin]
Jo
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