Hi all,
New Zealand seems like a good place to find positive cashflow properties. Does anyone have experience with investing in New Zealand? What are the pro's and con's of investing there? Also, can anyone suggest good locations to further research.
Thanks for your time.
engelo10
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
I'd suggest sticking to Auckland or Wellington. Unless you know the regional areas well, and more importantly the future job prospects in the regional towns, then that is a risk i think better avoided. Of those two Auckland is less of an earthquake risk.
There is a gradual population drift north, so Auckland is always a good bet.
Hey Wobbly,
Your are the only 1 replying to posts on New Zealand, I guess no one else is intereted on investing there hehehehe
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Hi all,
NZ has been a good place for investment me in the last couple of years. Have managed some good deals, with low reno costs to achieve some great equity gains and positive cashflow. The NZ market, from the perspective of most commentators, looks to be on the increase. Auckland and Wellington are seeing some good deals at the moment, but don't go past some of the smaller centres, particularly with universities. These will allow great cashflow, and provided the university is expanding, so to should come capital growth..
Cheers, Matt
Hamilton and Dunedin are certainly worth a look.
Unless you have a good handle on Christchurch i would give it a miss. There are undoubtably some cheap buys to be had there at the moment – and some tenant demand. I think near the Uni was largely unaffected by the quake. But you would need good local advice or an understanding of ChCh before buying there.
Also, other advantages are no stamp duty, or capital gains tax (however I'm still working out how whether CGT is affected by investing from aus).
just watch your returns get hammered when the aud/nzd goes back to $1.20
We always want to leverage. And as this is an NZ investment we will have 20% in, and 80% from local finance. Ideally if we can buy at 20% below market value then after 12 months we can refinance and pull out the Aust dollars. After that if the dollar returns to 1.20 then we will be getting more A$ in our hands. So we will think the investment is giving us a better return!
Certainly while your Aust capital is still in the deal you are exposed to currency fluctuations. Your returns stay more or less the same – your investment capital on the other hand is exposed as Scotty suggests.
Hi Engelo,
Some good points covered here from Matt, Scott and Wobbly. You may want to consider, short buy, renovate and sell deals where you aren't as exposed to monetary fluctuations amongst other variables, that may increase your risk.
Another area is the high positive cashflow deals that are available in the Uni towns in particular. One came my way yesterday for $240k with a 14% yield with potential to increase to 20% – fully managed and tenanted.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors – NZ – Aust – USA
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