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Hi Busta,
Where are you located – OZ? which state?
cheers
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Property Spotters living in NZ
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Email now to receive info on the lastest deals!Hi Resiwealth,
Without spending any money? It’s boring but the best way I know is negotiating a purchase price below registered valuation. Still uses a bit of time but no actual cash.
Wasp,
All very good ideas. Keep them coming.
Cheers
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Email now to receive info on the lastest deals!Hi Richard,
So how would someone go about financing a loan in the us now and how much would it cost to establish intial finance.
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Email now to receive info on the lastest deals!Hi Seaqueen,
You have hit the nail on the head about the dumps. These are the problem properties that absentees have no business buying unless they have a plan to fix the place. Anyway enough from me, here is a tip bit from the association.
SOUTHLAND PROPERTY INVESTORS ASSOCIATIONMARKET CONDITION:
The government is doing its best to try and talk the market down – or slow it down.
The facts are for Invercargill anyway, we have a very low unemployment rate, a positive community spirit and I haven’t seen as much commercial development as over the last 3 years and more is planned for Invercargill.
When I eventually get the new info sheet out there (promises promises) I will try an include the full article and some other press clippings etc.
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Email now to receive info on the lastest deals!What are they saying up there on top of us Dazz? [winking]
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Email now to receive info on the lastest deals!I think they can talk to us but we can’t talk to them. Not sure! To be fair sometimes newbies get a bit of a blasting for asking the starter questions. I’t does not seems as bad as it used to be though.
Cheers
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Email now to receive info on the lastest deals!Hi Foundation,
Wasn’t the armageddon supposed to happen last year or was it 2003? Maybe it will be next year or the year after!
Cheers
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Email now to receive info on the lastest deals!Now I have started to type my answer and I can’t decide what to do with the money! Can I just hold onto it for a while and decide later. Maybe if I take it to my place for a while I could think better. That should be okay shouldn’t it? [biggrin]
cheers
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Email now to receive info on the lastest deals!We lost our dogs once after a move. The poor little JRT got out of the front gate and did not know his way home!
We made up “wanted” posters and put them up all over town and didn’t here a thing for two days. At this stage we started preparing for the worst.
Then we started to receive information and phone calls about sightings. First he had been seen playing soccer with some kids in the park, then at the beach with other dogs. Soon after that he had visited the open air cinema and watched part of a movie and later he had been to a 21st birthday party and had a few snags straight off the barbie.
Not long after that he wandered into the supermarket and was promptly chased out ( they later saw the poster) and hurried into a local office. The people there managed to grab hold of him and his adventure ended. Dog then home safe and well!!
Cheers
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Email now to receive info on the lastest deals!Hi Mark,
Very good point about the crime in Shanghai. Liz and I were there in September and on the one hand the public transport system was immaculate with plazma (or lcd) panles all over that had not been smashed or stolen. I don’t think that would happen in oz.
It is a very modern and progressive place. BUT there is also extreme poverty and wherever there is poverty you get crime. Could have bought some really cheap laptops outside the hotel “ouch”. There were also alot of other signs of poverty related crime.
Just from looking there is also a massive inequality in the distribution of income.
Anyway, it’s cool to learn about other parts of the world. If I was going to invest anywhere near this region it would definitely not be a direct investment.
cheers
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Email now to receive info on the lastest deals!Hi Simmony,
Well done for posting your personal details for all to see. It should serve as a very valuable exercise for you if the forum members are keen to chip in and give some advice, good, bad or otherwise.
Your situation caught my eye because we are the same age so maybe we have at least that in common.
I don’t have all the answers for you but just have a couple of things that might help.
Yes! There is hope. With a big chance of sounding wishy washy I just want to say that making the decision and doing some serious planning is the hardest thing. It really is.
Work: I read an article in a mag yesterday about people would love work that much that there weekends tend to drag on because they can’t wait to get back there. Some people obviously get to involved in there job that they have no time for anything else.
The reason I mention this is because you obviously need some income to start investing.
How about this for starters;
1) Get a plan
2) Return to the industry – give it all of your time when you are there and none of your time when you are not. Work with a purpose in mind ie and end goal of getting out of the place and investing full time if that is your goal.
3) Reward yourself along the way!
4) Ditch the car and the gadgets and downsize a bit. This short term sacrafice will pay off ten fold. This is the hard bit so this is the reason you need to reward yourslef along the way.
5) Get business like about your investing habits and record and plan the hours you spend looking for and managing your new properties – you might find that you work for six months virtually part time on top of your normal job and then “boom”it all falls into place. (If you don’t devote a specified time your will burn out)Imagine if you couold buy two excellent properties with strong fundaments per year for 4 years. You would probably find that you would double this if you learn the necessary lessons along the way. Without a crystal ball if you already own them by the time we are next blessed with serious across the board capital growth there will be no need to to ever consider working again.
Buy your straw hats in the winter time!
Good Luck
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Email now to receive info on the lastest deals!Oh,
and I did post something a while ago about employment growing down here a 7 or was it 8 times the national average. It should come up under the search function.
cheers
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Email now to receive info on the lastest deals!Hi Misty,
We live in Invercargill and have an information sheet pdf that we have put together about the area and what is going on down here. If you would like a copy just email [email protected] or give Don or Liz a call on +64 212 357140. We offer property spotting and can find properties to meet your crieria. Even better come over and have a look. I’ll put the kettle on!!![biggrin]
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Email now to receive info on the lastest deals!Hi Roy,
Thanks for the article!
cheers
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Email now to receive info on the lastest deals!Hi Pen,
See if you can find out the rental history of the property ie, how has the noise actually effected the vacancy rate of this individual property.
This will give you a good indication of the market for your property ie do tenants want to live in this sort of home. No point just guessing that they will because it is close to the main transport routes.
What you have to remember also is that under certain market conditions everything sells. In different times a property like this may sit on the market for a very long time before anyone may want it.
So I guess what i am saying is that exit stategies are probably more important than entry. Or knowing how to get out of a situation should be locked into your mind before you get into a situation or investment.
The positives for a property like this might be that if the positive cashflow is real (not absorbed by high vacancy and maintenance) then it may offset neg cashflow in other areas of your portfolio. So as part of a larger portfolio a property like this may make more sense than just as a one of investment.
Cashflow for cashflows sake is a fools paradise. I don’t mean that in a derogatory way I just mean that you should be very realistic about all the expenses involved in owning a property.
What is the alternative use for the site. Is there potential to develope at a later time. (If so take your details to a local planner and have them have a look at your site before signing on the dotted line.)
Learn about noise minimisation building techniques.
Is this in a major city or a regional centre. What is the raw land value of the site?
So all this is thinking out loud (which is the fun thing about forums) and I get to answer a question that you did not even ask. Would I buy the hypothetical property you describe?
The answer is Maybe and probably not but I would not go as far as say that you should not. The reaseon I say this is because every single investment should be part of your “grand plan”and should be serving a specific purpose in order to ensure that you achieve your long term goals.
[biggrin]
Cheers
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Email now to receive info on the lastest deals!Nice post!
This investor has at least 10 properties relying heavily on research and walking the streets. They are smart and NOT affraid of making a decission, in fact they are prepared for any adjustments in the market like interest rates and market crashes. They know that investing is long term and are not interested in get rich quick stratagies.I like the way that reads. Especially the part about doing the research and being prepared. The whole thing really. This game is long term imo.
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Email now to receive info on the lastest deals!Hi Westan,
Yeah, they said it again on the late news.
What the radio said yesterday was that the reserve is spewing because as they raise the rates everyone is just swaping to the fixed so the 20% number will just shrink away.
Exporters have to put up with the rate induced high currency and the rate rises are not having much effect on the demand for housing.
Tv1 dragged some economist out last night who reckons that it could take 2 years for the reserve to have any effect on the market with the way debt is held.
So fixed is the way I was just saying that most people have.
Cheers
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Email now to receive info on the lastest deals!Hi Guys,
The whole interest rate discussions seems to be a bit of a moot point if you are to believe the figures quoted on tonights tv2 news here in NZ.
80% of housing finance is currently funded through fixed rates. That is, 80% of every single dollar is fixed already at the low rates of the past few years.
I have rates of high 5’s through to 7 fixed from 2 to 5 years with every loan coming off a fixed rate at a stagger. That’s just the way I did it. Seems everyone else had the same idea as me.
To add to that everyone who is currently coming off fixed can fix for another 5 years if they like for 7.5 %. There is fierce competion in the fixed rate market and there are still plenty of adds on the telly from banks saying that if they can’t match the rate of the competitor they will give you cash.
Most modern loans products allow borrowers to switch from variable to fixed loans for a nominal fee anyway. This is probably why 80% of people are on fixed rates.
Pretty sure that at the moment the five year rate is the cheapest fixed rate out there. I will leave the interpretation of that to the bankers but my guess is that it has a fair bit more to do with the internation price of money than local NZ monetary policy.
Those of us who think property is a medium to long term investment will have invested with a long term strategy. This includes calculating and minimising the cost of finance and focusing on management and control of our investments.
Cheers
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Email now to receive info on the lastest deals!Hi Pgrim,
Thanks for the imput.
Curious about the organisation that was pluging shanghai to you guys. (don’t worry not buying there).
If you don’t want to post their details send me a pm if you get the time.
Cheers
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Email now to receive info on the lastest deals!Hi Guys,
We also live in NZ but dont have a crystal ball.
What the actual numbers are telling us that the housing is still powering ahead.
This is confirmed by the gov’t increase in the cash rate this week.
We all know that the rising housing costs have a significant effect on inflation. The recent rate rises are an attempt to control inflation.
The issue is that business spending is also on the up and consumer confidence is super high. Actually the highest it has ever been. Unemployment is at 3.8 percent or really the lowest in the western world.
So, as you all know the fixed interest rate market is linked to the world price for cash. IE banks fund the fixed rate home owner finance from off shore in dollars , euros or whatever. Most of this cash is from europe but alot of it is coming from asia and australia.
Thus, fixed rates are low and are consistently about 2 percent lower than the variable rate.
This present a problem for the góv’t as increasing the offical cash rate has become a bit of a blunt instruement as home buyer fund their purchases through fixed rates and not variable rates. Get it!
So, the reserve has to increase variable rates alot more than they would in the hope that they can meet their inflationary targets.
What is happening in housing is classic an predictable to a point. Lets not talk about the entire nz market as a whole. To do this would be very naive and frankly stupid. It would be like saying sydney home prices are indicative of what is happening in Perth or the whole of Australia.
We are investors and we are not that silly are we?
Should we buy in NZ now? Do the resaerch yourself and find out. We put up some stats last week saying what is happening in southland and particularly in Invercargill. Cap growth is still there (if you buy the right properties in the right place). There is alot of S#$? on the market at the moment. Frankly it is poorly located trash the is just getting recycled over and over. The only people making money on these deals are the spotters and agents not the investors. If you buy one of these places then good luck to you all. There will be no point having yield because you will plough all the cash and more back into maintenance and in the end noone will want a poorly located property in a flatter market.
On the other hand their are good deals around. For those of you who know Invercargill would know Windsor. We just picked up a 2 story 4 bedroom house yielding 9% easy.
What is the moral. Buy a good property no matter where it is and you will benifit. If you buy crap, well, what can i say but good luck!!!
Cheers
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