The main question is what is the prurpose of your purchase?

We’re assuming you’re looking at this house as an IP. It’s a great area to live, close to Uni and transport etc.
It will always be in demand for those very same reasons.

Are you looking for yield? If so, look elsewhere. If you want growth perhaps you’re on a winner.

Is there anything you could do to increase the value. Could you rent it on a room by room basis to students and increase the yield.

If you’re waiting for prices to drop, that’s nothing you have any control over.

Cheers,

Dwight

I agree.
Very wise advice. I own serveral rental rpoerties that could easily fall into this description. I knew in advance that I might be buying cheap because there was some remedial worl to do. Or to put it another way, the previous owner couldn’t be stuffed doing it.
In the first year of ownership I spend more on outgoings than rental income, but after the first year the improvements will begin to pay for themselves in lower maintenance costs.

I send the advice to make sure you have insulation. It may cost 2k to get fixed but it means that your tenant wil be happier, and a happier tenant tend to pay on time!

Cheers,

Dwight

Steve is the man. Follow his advice!

You have to find your own path though. I have had some success with shares (doing it the old fashioned way – Buy, it went up, I Sell!) and am now looking for cashflow positive property deals.

I have bought in Gold Coast and NZ in the past 24 months and the most expensive home I purchased was less than $140k.

The houses I’ve bought are all standalone or in a small block for the QLD case. I’ve avoided high rise with their OC fees that really eat into your income.

Also consider getting some coaching or training. You have a real opportunity to put your nest egg to use.

I was in a similar situation 10 years ago and made a few big stuff-ups that cost me. Buy Steve’s book, go to his seminar. Don’t be afraid to invest in yourself a little before you try to find a “vehicle” to make your money.

Good luck,

Dwight

It’s good that you’re thinking about how to move forward!

I did a few things over my investing life that wer “borderlne” or tricky. Not necessarily by my own impetus, but becuase I was led to believed they were a “great opportunity” and so on.

I have learned that you have to stick well clear of the “line” and be on the side of the angels with regard to legals and tax.

It bit me in the bum more than once and I now listen a lot more to my wife, who is less stoopid than me for sure!

This isnt what you want to hear, but take heed anyway.

Dwight

Not sure what the controversy is. You may or may not agree with all thet Neil Jenman has to say.
I spent some timne working for a Jenman agency in Melbourne’s East and came away convinced that the majority were involved becuase they wanted to make a bit of a difference and not rip people off or mislead them.

I’ve also had a fair bit to do with individual staff at other agencies who i would now happily use and recommend who are in no way affiliated with Jenman.

The market has changed in the ten years since I was involved. It’s now about internet presense really, not relationships with people from a marketing perspective.

Cheers,

Dwight

You can certainly sytart as SMSF with yor $50k. I did so some years ago with a similar amount. It simplk means you take control over your investment. It’s not for everyone, but anybody who wants to take responsibility for their own future and has some experience would find it beneficial to do, IMO.

I personally traded in stocks with an amount that size. After a few years and some more funds added from the work account my wife and I were able to purchase a small, old 1BR rental apartment for cash.

There’s always the passive income fund to consider!

Getting back to your original question “Should I hold it or sell it?”
What was your plan when you were thinking about buying? Was it to increase value and rental return so you’d get a cashflow? Perhaps not if it’s costing you to hold it. Could you sell it and take a profit?

Steve often says “what else could I be doing with my money?” and that is the real test here. If you could take your money out of the deal could you get a better return with it than you’re acheiving right now!

If you’ve got the building skills there are plenty of units you can look at for aorund the $140-150 mark that are very “original” and could do with a quick “makeover”. If you’re a local (I’m not!) I’d be looking at those to turn around and market to passive investors.

Just my 2c.

Cheers,

Dwight

Back to the original post – I fully agree, you need to have team in place, and invest time in finding and nurting said team.
I’ve bought a number of properties in NZ, and whilst it’s not particularly “foreign” to an Aussie, you need to have :
Accountant
Solicitor
Bank Manager
Property Manager

all in your sights and on the same page.
My ongoing relationship with my current property manager has allowed me to avoid pitfalls that would no doubt have been taking cash right out of my pocket.

Hi Grace,

Have you had any success looking for deals in NZ?

I have bought properties in Rotorua with minimum pain having applied for finance directly to bank there.

I also looked in Wanganui which has a lot of cheaper homes that could also be positive cashflow.

Once I got started in Rotorua it was easier to leverage my local knowledge so I never followed through in Wanganui.

Cheers.

Dwight

As an active investor in the fund, I chose to top up now that the fund is open again for applications.

So far the funds has been progressing just as predicted and I'm confident enough to add more cash now that some properties have been purchased.

Check out the link for more info.

Cheers,

Dwight.