Forum Replies Created
Hi Zeallous,
Just to add to the other good posts. Once you have done all your web and phone based DD you can not underestimate the value of visiting the suburb that you want to buy in. Talk to the people that live there. Get the local paper sent to you and read it cover to cover.
Go to some garage sales in the area. Find out how many people are leaving town and why. Are established families leaving or is it just young singles or couples that have split etc.
Drop into the local police station and ask to station guy “would you buy a house in xyz street… if not why not.”
You will get a very straight answer.Visit the suburb at night. If you think the area may be of concern. Don’t go before 11am for your suburb inspection. Anyone or thing that may be a problem will still be in bed. Try about 3pm.
Ask local businesses what is going on in the area. How many new businesses a starting. Or even better are there established businesses that are expanding and building new premises.
Become a local one way or another. Could you have a conversation with a local about the area you invest in and have them think you have lived there? When you are confident you could then your DD process is well underway!
Cheers
Terry has a good point. All you really need to know is where your cash flows so you can take control. You should be able to do this on a simple spreadsheet. Having the discipline to stick to the budget and make records is the key thing.
Good Luck
Hi Samuri,
Sorry a bit off topic. There has been quite a bit in the news this week about Auckland Residential High rise developments. The Mayor has this week announced a plan to improve and or restrict certain types of developments.
The new points system during the application process will fast track those developments that comply to the new regulations and those that receive lower points will be rejected.
These plan have been in response to complaints by many locals about the changing Auckland Skyline over the past five years. Auckland officials state that in some cases they may have been to hasty to approve certain projects and they are now paying the price.
Cheers
hi samuri,
in addition to the comments above you could try “Successful Trust Management”by Ross Holmes. He is a solicitor that has published widely on the subject. Good luck with it all.
P.S That book has a fair bit of practical advice and examples so it may answers some of your questions. Then when you seek professional legal advice you will be on the same page as the solicitor and be ready to ask the right questions.
Good Luck
Thanks for the link guys. Good to see some hard numbers floating around the forum. Where we are in Southland at the moment there has definitely been a correction. Which has meant there are quite a few more cahsflow opportunities around at the moment. Lower end properties with maintenance issues are not moving at all. The better stock is moving well.
I just spoke to an angent who said he is selling two portfolios of aussie investors. One had 10 properties and the other 9. He Stated that the cashflow expections had not come through and the vendor was in one case faced with a 20k maintenance bill that they had not planned for and could not afford.
Locals from the property association who have been siting on their hands for 18 months are back in the market and buying “well”.
We are doing a 8 week trip of the taranaki and King country. All our agents up there have been telling us that things are back to normal again and there are more genuine opportunities around. Could just be agent speak for come up here and buy something but we will see when we get there.
Cheers
Hi Foundation,
Great work! It is great for investors to get exposed to as much media/information about the economy as they can, especially when it comes from reliable sources.
I am not saying I agree with the article just that it is healthy for us to be exposed to both positive and negative information about the PI world we live in.
Thanks for posting I would not have had a chance to see that particular article if you had not alerted me.
Intereset rates have recently risen to around the 9% mark in NZ. It has not caused a 20% fall in prices but we cant compare apples and oranges. Aus and NZ are totally different markets. Variable rates forces here have not had such a dramatic impact because fixed term rates were discounted for a while last year with alot of competition “war” between the institutions. Many investors chose to fix for five years at rates lower than the variable.
Back on topic. Whether or not a 20% fall in prices occurs the important thing is that we remain informed and prepared. All serious investors will have a plan A and a plan B. Some will seek other markets and the more sophisticated will branch into other assest classes and diversify their entire portfolios. Some will sell with the market trend and others will buy up big against the market trend.
The beauty is that for those starting now they will have an opportunity to learn valuable negotiation skills and will have the opportunity to buy property below vendor asking. They will able to seek bargains and find them. Exciting times. This property investing stuff is so much fun!
Well done Dazzling. Good luck with the rest of the project. As to the fittings. It would be pretty hard for either party to assert ownership in the absence of an agreement. Would need to aduce evidence from the previous owner and contractors etc. Very expensive and risky. Sounds like your wife is doing a good job anyway.
Cheers
