Forum Replies Created
yes i think if we can bring something to eat/drink along would be good, I’ll see what I can russle up – with a chocolate theme of course!
I would also like to know other peoples opinions/experiences on investing in NZ, can this please be added to the topic list.
Cant wait, I love tim tams [blush2]
hi
people ask me questions like this all the time, and are never in a position to be able to do it.
btw – you can borrow over 100%, usually 105% to cover costs – as long as you have enough equity to satisfy the lender.
If you are in the position to borrow $3mill from the bank, you will make your personal banker a very happy chappy! There will be a lot of details about the property that will count though, is it metro, rural, block of flats, one large estate, block of land etc
sorry if i’m being ignorant, however i used to educate people on fire safety and was always told that smoke detectors should always be on the ceiling or at the top of the wall, otherwise the smoke has to fill the room enough to drop to the level of the smoke detector giving people less time to get out.
hi there,
The 3% the bank calculates on the credit cards for your minimum monthly payments are based in the AVAILABLE LIMIT, not what you currently have outstanding. its called risk assessment on the bank’s behalf. So this can dramatically reduce your lending capacity even if you are not using the cards.
Also, the banks are wising up (and have been for some time) so if you make a lot of large purchases throughout the month and pay off the balance each month on your cards to gain points, they will suddenly be very interested in your spending habits. They can also force you to move to a card without points if they believe your are doing this for a commercial gain.
What I would suggest doing is closing your CBA and ANZ cards and IF YOU NEED IT ask virgin to increase your credit limit. The interest to pay on the virgin card is much less if anything goes wrong and you can’t pay up before the end of the interest free period.
Sounds like you need a line of credit, not credit cards. also if you can keep your receipts etc the interest paid on the line of credit can be deductable when it comes to tax time.
You have to be very careful when renovating and on-selling but I’m sure your aware of the costs involved, taxes etc. can be very costly.
If you dont have property to get a line of credit on, another way is an unsecured personal loan but the banks always want to know what your going to use the money for, and mostly pay it in bank cheques, however independant finance companies will lend with security of a vehicle if you have one (for a higher interest rate of course) – i just went down this option and wouldnt recommend it, I borrowed $15K, repaid $2500 over 5 months and when I paid it off, had only paid $300 from the principle of the loan. I still dont understand that and I work in finance.
Good to see your thinking outside the square to fund your goals! Good luck.
Dohicky
reverse mortgage? no way! I want to leave my kids (when i have them) more than just debt. I would prefer an LVR of 50%max by the time i retire.
ok my turn…
If you lost all your money/investments/assets/ppor how long would it take you to replenish your portfolio and what strategy would you use?
Hi Jenny,
I think everyone has a story of misfortune with a bank of some sort which is unfortunate. My parents recently travelled 100km’s to thier nearest branch to sign docs on a new ip mortgage only for the bank to advise they hads lost the papers the next day (day before settlement i might add) needless to say there was a lot of running around done by my parents to sort out the problem.
Now I’m going to share with you a dark secret… I work for a bank. I know I know, but it pays the bills. I’ve worked at three different banks in NZ and Australia over the last 6 years. From my experience, there is so much paper in the banks thats its no wonder some things get lost, or with the thousands of staff they have that mistakes are made. Human error is a problem.
Yes the banking Ombudsman threat is a good one (I would suggest following it through too) but before going to the ombudsman you need to make a formal complaint at the bank you are dealing with. Usually this can be done by phone and the details are sent to the disputes department where a group of very very patient people deal with complaints all day.
Can I suggest, even if you are going through a broker, get the name and direct phone number of the personal banker who will “own” your banking and CALL them. If you are able to, then pay them a visit. They will have the internal contacts to follow up any issues as soon as possible. Banking staff churn from one dept to the next, so chances are they will know someone or have a good relationship with a person in that team and try to call in a favour to get it fixed asap.
I realise this is probably a bit late for your current situation, but dont think it can’t happen again in the future. I’m a bit of a control freak so I follow up every step of the way, if I am not contacted on the day they said they will get back to me, I’m on the phone or emailing straight away.
I hope everything has been sorted out for you by now [hair2]
Hi Mini,
The property is currently tenanted so at least i know the real rental value, thanks for the advice! I will make sure if i buy any untenanted properties i get an independant rental appraisals, Don and Liz gave me the same advice, I think its a very good idea.
still looking for another property… The search is neverending. I keep getting pipped at the post on the good ones, some people are paying way too much for these places.
I used to live in ashfield, great property area but how will you find a cashflow positive place there?
If I were in your situation I would buy buy buy using the equity in your own home, do your research and find some great cf+ properties, then sit back and wait for the cash to roll in. But thats if i were in your situation and I’m not and your risk barriers may be higher than mine.
I’m still buying there, signed my contract this morning :o)
40 employees layed off at the mill today.
sorry i may have misread that, did you mean LMI (lenders mortgage Insurance) or personal mortgage protection in case of death or disablement?
I know there are only two mort insurance companies in australia of which CGU is one, sorry I dont know the other ones name. Most banks use one or the other, not usually both.
hi you can use a quantity surveyer to do this for you, check it out in the yellowpages.com.au website.
OK I just turned 26, but I’m still 25 at heart!
5 Months ago with the help of a FHOG and my very generous parents I bought a deceased estate in Sydney for $210K, after 5 months and $15K of renos I have increased the value to $255K. essentially it was a no money down deal as I also borrowed the $15K for renovations which I am in the process of refinancing into my loan again. along with the refinance I am gaining access to all of that untapped equity and purchasing two cf+ IP’s in NZ. Hopefully a third one in a couple of months once I have actually saved some money. I have one more month to go before I can move out of my first buy and rent it out, even though it is and probably will be negatively geared for a while, the cap gains over the long run should make up for it (I have a lovely city view).
I think I’ve done pretty well considering 12 months ago I didnt really know what an investment property was.
I put my success down to two things:
1/The generosity of my parents
2/The knowledge of my parents… at 52 they have bought 3 properties in the last two years and are going strong, they also bought me the best book for my 26th birthday, It’s written by a guy called Steve McKnight, perhaps you’ve heard of him??The only downside is I now find myself completely obsessed with property investing, hence my posting here at midnight.
what is the kiwisaver scheme?
hi,
Your certainly on the ball…
Dont move back with your parents, after living away from them for 6 months you will understand why. Your life experiences from living with others will by far outweigh the benefits of Mum’s cooking.
Also you may find that renting out three of the four bedrooms you will get close to what you would per week on a long term rental, plus you have the added bonus of seeing the property everyday and making sure it is being treated well.
Living with people your own age is always a lot more fun, but be aware that others your age may not be as financially sound as you are, perhaps you could teach them how to budget???
Also when it comes to tax time you are not able to claim depreciation on the entire property as one of the bedrooms is being used solely by you, make sure you get a good accountant (not just a cheap one)
Good luck! Once you have all your flatmates in place you will be able to start saving towards your next investment property, but remember your 17, so dont forget to have some fun along the way.
hi, gladesville couldn’t be more convenient for me, I’m happy to attend at 4pm on september 11 (will get me away from a day of tv re-telling the sept 11 story from 4 years prior. couldnt give a stuff about rugby/football/fooseball…
Very interested to hear other peoples stories on how they have invested especially outside of sydney while living here. The good thing about gladesville is if people want to hang around afterwards there are heaps of restaurants.
See you all there!
hi there, i would recommend reading steves book from 1 to 130 properties in 3.5 years. he talks about a few strategies.
gosh isnt it funny? I grew up in kaitaia and couldnt wait to get out of the place (as soon as I left school) and here I am thinking of buying my first investment property in NZ and I stumbled accross your dilema. I would never in a million years think of investing in Kaitaia, can you let me know what the rental returns up there would be and what drew you to the place? where abouts is your mortgagee property. I would tell them to get out or sign a lease, and a condition of the lease is for them to bunk somewhere else next weekend while you are in the area doing your cosmetic changes. The funny thing is, if this is a cashflow positive property they will be paying you more rent than what their mortgage was in the first place, I’d be very wary there as if they couldnt afford the mortgage could they possibly afford the rent?
Keep up updated, its a very interesting predicament. If you need legal help I can recommend Robin Fountain (649 406 0690) who is a conveyancer up there in Mangonui but I dont think he works Mondays. Otherwise he used to be in a firm called fountain manning and co (649 408 1050).
Good Luck!!!!
