Forum Replies Created
- Hey there,In June 2007 my parents offered to sell me a share of their IP at the price they paid for it (180k) so purchased 1/3 share for 60k.The property was instantly valued at 210k as they had bought it in NZ just before boom time and is now worth 240.I used my share of the equity to buy number 2 in November (also in NZ) which is now showing a 7.3% return and refinanced that instantly to buy number 3 which settles in 2 weeks and will be CF+ by $5 a week.I started off at 24 with a 60k investment which gave me the bug big time! I am now 25 and looking at moving back to New Zealand (I am currently living in Sydney) to invest full time.Interest rates are sitting at 10.5% over there at the mo, but if you can afford the holding costs there are loads of bargains out there.I look at the holding costs as savings, as long as you buy good capital growth property, you can't go wrong, I would much rather put $80 a week into my properties than into a savings account!
Well its in NZ and I'm in Australia, I might pay for my Dad's flight from Christchurch and he can look at it for me.
Dad always knows best!!hi cyclist, thats what I think it is! maybe after the excitement faeds and the reality sets in it happens to everyone!!
Hi Simon,
Yes I have checked out re.com.au and they don't have any one bedrooms for me to compare too! There has been no pressure but I'm worried by the time settlement comes (Jun 08) the rise in interest rates would have a caused a drop in prices. I think I'm just gonna fly up and have a look, rather spend the $500 now than lose 225k in the future!!!
deadlast
I have PM'd you re The Investors Club
Cheers,
Emmahi kim email me at [email protected]
I am looking for 5.5% yeild +
what sort of properties do you have available?cheers emma
It does work, thats exactly what the Investors Club do, live off the equity they gain each year, non-taxable income, thats what I'll be doing when I'm 30!
I bought myself a 1990 Toyota MR2 when I was 18 and I loved it so much.
That cost me $7990 7 years ago in Chch, NZ.
4 years ago I moved to Sydney and I don't need a car.
I much prefer have the $100 a week car payments to use towards buying more property!!!
But when I make it in this world of PI'ing I will get meself an AUDI TT Black softtop!!! Beautiful car!!Hey thanks V8Ghia,
I'm actually from Chch, been living in Sydney 4 years now.
I currently have a JV IP (a flat in Chch) with the family but want one of my own.
We bought that in April last year for 180k and its renting for $230 p/wk privately to a freind of the family who will stay forever.
We recently had it valued in April 0 and it was valued at 210 – not bad 16% in a year.
Yes South Island as I know the market and it is a town I spent a lot of time in as a child/teen.
I have a great agent who emails me no less than an 8 line paragraph for each property she is selling, she's fab!
The only bugger is that I can't borrow more than 90%LVR but I guess that keeps it realistic.
I am going to focus on one at a time so Broken Hill is out the window.
I'll let you know how I go with the trip. If nothing else at least I get to see the folks!P.S What is stopping you from buying there?
hi jason,
take a look at pod property, they do just that, its like a dating agency for property investors.
Just google themHi Kiwishep,
I was hoping the fact that I'm an NZ'er living overseas would help but no.
I have managed to secure 90% through a fantastic broker in Chch so I'm happy.Cheers,
Emmawow thanks for your in-depth response skippy girl.
Unfortunately I can't get LMI approval for Broken Hill so I can't proceed.
I wish I could go and have a look at the property this weekend but I have a flight booked to NZ to look at some houses there and by next week it will be too late, the property will be gone!
If only I could be a full time investor!!!Thanks for your reply Marg,
Who would you recommend I have look at the property?
The owner boards up the windows when he goes interstate which is frequently (apparently)!!
Also I am thinking of calling some property managers in the area to see what they think of the area as after the vendors rent-back time is up I will need new tenants!Cheers,
EmmaHi KingB,
Congrats on your purchase.
I am looking at something similar to yours.
This will be my first IP of my own, I own a IP as a joint venture with my family in NZ but I want one here in Australia for tax benefits.
Its 85k with a rental income of $110 a week which according to the agent I could raise to $140 after a good paint and maybe a new kitchen. Problem is its a very long way from me and its not in a great area.
I would be buying sight unseen also although I have visited the area a few months back so I know what its like.
Plus I would be getting a 100% loan so it would not be CF+ for a few years.
How did you do it?
Did you save a big deposit or use minimal cash of your own?
Any tips would be appreciated,Cheers,
EmmaKia ora
I own a IP in CHCH and I am eligible for the FHOG in NSW and stamp duty concessions, most lenders that I have spoken to choose not to include my NZ property in their calculations even though it s neg geared.
Property here is a lot more expensive but its all relative, I know noone here earning $14 an hour but half of the people I know at home do. Its hard to get your head around at first.
PM me if you want any more details.
If you have a full time job and a few grand in savings, maybe 5k, most lenders will bend over backwards to give you the money.Cheers,
EmmaCredit cards don't hurt they sting!
I had a limit upwards of 16k and even though I only owed 1500 the lender was not too happy, so I reduced my limit to 2k which hurt but gave me a huge increase in borrowing capacity as they assume you will always have the card at its limit and you will be paying a minimum of 2% per month so at 16000 = 320 but 2000 = 40 = $280 per month more cashflow.Cheers,
EmmaObviously new to the forum and new to communicating nicely with others?
We are all here to help each other, I am sure gold coast girl was acting in good faith when she replied to your post.
And if you were such a good builder you would probably know who to ask for the answer you seek.Emma
Hi Linda,
So far RAMS have been good but I've read some nightmare stories on here. Yeah he should just say he will be living in it when the current tenant moves out but they will look into this ie I had to get my boss to sign a letter saying it was possible for me to work from Regional NSW even though the ofice is in Sydney, so they could see that my income would continue in order to service the loan.
Cheers,
EmmaHi there,
I have got a loan through RAMS at 100% of the purchase price for a PPOR however the current tenant has a lease for another 11.5 months and I will move in after that to do up the place and take residence for 6 months as I also got the First Home Owners grant so have to fulfil those requirements – move in within 12 months – live there for 6 months consecutively. At the moment the property is cashflow negative by about $20 a week but once I have moved in and used those 6 months to renovate it should easily be cash flow positive. The property is about 3 hours from where I live in Sydney so it'll mean commuting to work 3 days per week and working from home the other 2 and my partner will remain in Sydney in a rented property. My consultant at RAMS wasn't bothered about me receiving rental income for 11.5 months and the only way I could afford the property was with the FHOG so I had to get creative, has your family member thought about doing something like that? Only downfall is that he has to take residence for 6 months continuosly.
Emma
Hi there,
Just to confirm as I have an NZ IP that losses can only be offset against other nz income. So I was advised to set up trusts for each IP so they could offset loss against each other.
Westpac in Nz have been very good to me, my loan consultant signs off on my Australian cheques to be deposited without the $28 international fee and they are good as you can withdraw from Westpac ATM's in Australia with out an international ATM withdrawal fee which is handy if you find a CF+ property so you need to withdraw money from here.
PM me if you want the name of my consultant.Cheers,
Emma
