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two loo’s probably! Make sure there is not a way to have both first. Get someone to come out an do an on site inspection for you. Fresh eyes can make all the difference.
cheers
I Buy Property http://www.cashflowproperties.co.nz
The advantages are that with apartment buildings we form syndicates to purchase. We are only buying established buildings and for that reason the banks look at these as commercial investments and will lend around 80%. The returns on these buildings and the potentional capital growth are great.This seems like a sensible approach. For a few reasons.
eg, if I was trying to buy a single family house from oz and then onsell or flip that house to a client. If i have never seen the house I can’t see why the client would not just buy it for themselves off the web.
However, I imagine when bidding for a larger complex or deal with many more variables you and the syndicate would be on a level playing field trying to buy a genuine opportunity. Ie not just being fed deals from a developer or company. The DD will be more extensive and expensive to conduct which would reduce the amount of tyre kicker so to would the capital outlay. Hands on DD would be viable and the types of reports would be more detailed, eg engineers reports + detailed income histories and maintenance schedules.
Not making any comment about these deals in particular it just seems to make more sense to join forces. There would be obvious pitfalls with control and exit etc
I Buy Property http://www.cashflowproperties.co.nz
well done dazzling – time to get creative and make a few changes to make it work!
Gatsby – we both invest full time (liz and I) and are pretty excited about opportunties popping up in the market where I live. After a year off without pay our resignations have been formalised and badge etc handed back without any ceremony. Just stuck it in the posts and exchanged a few emails. Some things in life that seem like a big deal really aren’t. So we are no longer police, really it’s been at least 5 years or longer since my heart was in the job and if I was to be entirely honest I knew very early on that there were others around me who were far more suited to do what I was doing.
We used to commute 3,5 hours a day to get to work doing something that we did not enjoy which in the end was a battle. Now I commute from the kitchen to the study. Their are things that you need to learn about working from home and working with your partner which we are still sorting through and trying to make work. Also when you hobby or passion become your job you need new hobbies or you just work 24/7. These are all the issues that we are sorting through ie not the lack of opportunities but working out how to balance things and how assess which opportunities to go for.
When you do it full time you have the luxury of time and the volume of deals you go through helps shield you from the rash decisions. eg an agent that I have brought say 25 or 30 homes off is trying to sell me properties in a portfolio that a ozzie has. He is selling all 9 of his properties that are yielding close to a 10% yield. Good deal right? Wrong? This guy brought all without seeing them purely on yield through a real estate agent.
The catch is he want’s someone the buy them like he did ie sight unseen off the original photos that he saw 18 months ago. So while I sat the quitely smiling at the agent thinking that they were both dreaming it came up in conversation that there are only three left.
Okay so I am off tipic now but the point I was trying to make was that 2 years ago I could have been one of those people that brought those properties (probably not) but may have been tempted. No doubt they will all be back on the market again next year when the repair bills start flooding in.
Cheers
I Buy Property http://www.cashflowproperties.co.nz
yes – and as for “still renting” try out the search function on this forum for some very long debates about that topic!!
I Buy Property http://www.cashflowproperties.co.nz
The world has changed a lot since our first edition, The World in 1987: no Berlin Wall, no Soviet Union, a single superpower. China’s rise is a safe bet to be one of the most important developments over the next 20 years. By 2026, will China—assuming it stays in one piece—be the world’s biggest economy.The economist
apparently usa will be number 2 and india number 3
I Buy Property http://www.cashflowproperties.co.nz
hi Guys,
I beleive everything comes in cycles, and must educate myself on economics. I wasnt activly investing in the late 80’s but interest rates were around 17% !!!and so you should – and when the chicken littles point to the falling sky you will know that history shows that all markets will eventually stabilise and return to a growth path.
since 2002 friends and family in oz have been telling me that the property market is oz is going to crash and that it will be the worst financial disaster in history – well i’m still waiting to see it. It’s been 4 years and those people still have not done a thing.
fixed rate? not very popular but have a look at the latest products around that have the redraws and equity facilities that you may want as an investor. Lock in for 5 years if the rates are suitable – you should be able to buy a property or two each year and as your portfolio grows your holding costs will be “fixed” to a large extent.
try to identify assets that are growing despite general market trends. Whether it be stocks or property look at the fundamentals of the company, what is it doing now, what does it plan to do and how are they going to do this.
If it is a city you are planning on investing in look at new businesses and particularly like businesses opening up in competion to like. Once you see this happening across sectors eg retail stores, manufacturing, services it will be a sure indicator of growth. Check the anecdotal evidence with hard stats. I can’t see you crawling to the top of the pile by doing what everyone else is doing.
I Buy Property http://www.cashflowproperties.co.nz
hi – it’s a funny thing about chicken littles – most of them don’t invest in anything so I am always amazed why they are even interested in these things – is it just so they can say “i told you so” at the family bbq. Their only source of income will only even be a wage or social security payment anyway.
I Buy Property http://www.cashflowproperties.co.nz
true – and depending on the vehicle you are going to have higher liquidy than direct property
I Buy Property http://www.cashflowproperties.co.nz
i agree – and when you are not around (like me ) and you only get to read that sort of stuff it gets pretty hard to get a clean look at it.
I Buy Property http://www.cashflowproperties.co.nz
thanks, thought it woul have been a bigger number given the amount of ink devoted to the issue!
I Buy Property http://www.cashflowproperties.co.nz
the advantage of property is gearing and captial security
managed funds and shares are very significant wealth creation vehicles – read peter spann – but just my personal opinion and I sure it will get shouted down – i would not put 700k (unless this represents less than 30% of your total equity ) of cash into equities at the peak of the cycle – maybe 12 months in a fixed income fund or cash heavy investment may serve you wellI Buy Property http://www.cashflowproperties.co.nz
hi steve and all,
I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.or they could be “highly motivated” and very negotiable on price
I Buy Property http://www.cashflowproperties.co.nz
andrew – it should be pretty easy to find out the 10 year and 20 year average yields for your suburb – have look at this info and it may help you set a reasonable rent for the property.
Empty homes yield 0% balance is the key especially if you have a larger portfolio – is the house arond the corner for 360 empty or tenanted?
I Buy Property http://www.cashflowproperties.co.nz
it may be harder to explain than I originally thought?
I Buy Property http://www.cashflowproperties.co.nz
maybe bob – but I always get nervous when is see a small nation like OZ which represents just a drop in the ocean in terms of the worlds economy, population, inlfluence etc etc trading with china (emerging super power) and claiming that it has CONTROL of anything.
At least we will be selling it to all the emerging economies soon ie china, india.
Probably nuclear power is safer these days but I have been to china and seen the way they construct buildings over there. Lets hope they don’t use the same crews to build the power plants.
Although, china will be using most of this new power to satisfy the wests insatiable desire for consumer goods ie goods built in factories powered by new energy.
So I don’t see how that will help our BOP situation – the banana republic situation you talk about will not go away and just got worse.
Ie the smart nation once again exports raw materials and buys it back as dvd’s and highly processed textiles and value added products. eg we become a price taker rather than price maker.
NZ is still nuclear free but there have been murmerings about some changes there. There country is heavily reliant on hydro power which you would think is a good things but it seems is notoriously unreliable. Wind power gets alot of media but seems to be a less favoured source of energy.
I Buy Property http://www.cashflowproperties.co.nz
hi anna, will have to disagree with the others on this occassion-but if you are worried if you have the right stuff to get through the job lift the old floor coverings in one room and punch all the nails and putty the holes – this is the worst put of the job so if you can get through that maybe give it a shot – best to try and learn these sorts of skills on your rentals rather than on a property for resale. You will probably save about 2k by doing it yourself which does not sound like much but if you are just starting out may go a long way eg you could buy all the paint inside and out for a home with some change left over.
cheers
I Buy Property http://www.cashflowproperties.co.nz
hi Kiwi – in think keiran trass has explained it quite well in a recent somersoft thread – here is a bit of it
Quote:
I’ve heard/read that NZ is now in the recession and that NZ currency is fast falling in value vis-a-vis other international currencies such that the Australian $ currency was also being dragged down recently. Can you, please confirm that and also further share your assessment on how bad the NZ economic recession is going to be this time and its related implications on the NZ housing price with us, by posting a new thread on this subject in the forum, please.I would love to know why you think we have a recession? We don’t and the NZ dollar has been known to be badly overvalued for about 2 years now so the drop is no surp[rise and is great for our export industries.
We still have extremely low unemployment, good wage growth, positive net migration and whilst business and consumer confidence is down the reality is very different to the perception.
In saying that we may see a small contraction in our economy as a result of lower property price growth rates slowing down the wealth effect (ie less spending) but no real recession.
I have been saying for 2 years now that NZ will not have a property price crash (some isolated potential exceptions being Aucklands CBD apartment market which is now crashing!, small towns and some coastal areas which may still crash)
__________________
Kieran Trass
Author “Grow Rich with the Property Cycle”
http://www.hybridgroup.co.nzcheers
I Buy Property http://www.cashflowproperties.co.nz
hi guys,
finance is the first step – then make sure it is a sound investment before you go ahead.
I once lived next door to a rental property that I owned at it was slightly uncomfortable . the agent was not supposed to tell the tenant we lived next door but they found out. no major problems though.
cheers
I Buy Property http://www.cashflowproperties.co.nz
Hi dave,
try not to put the cart before the horse. if you are keen on building a large portfolio have a nice long meeting with a mortgage broker who you trust and talk about what your borrowing capacity is and discuss how you caspacity to borrow will change over time depending on the investments you make!
regards
Don
I Buy Property http://www.cashflowproperties.co.nz
not sure waht you can do about the fron yard – but get the fron windows tinted or treated glass placed in – you can see out they can’t see in
I Buy Property http://www.cashflowproperties.co.nz
