Forum Replies Created
Thanks to all for the feedback.
We got appraisals that came up quite well with respect to what we paid. One was actually a lot higher! But you can only get what someone is willing to pay you for them. For those who sold, did you get prices close to the appraisals?
What are the sales costs?
We bought through Dan, and had our dealings with Seth, so we have done the full circle though the yields have been OK.
Cheers
JJ&JoChad
Thanks for the info. Yes, we paid retail with about a 20% gross ROI. To be honest we have been reasonably lucky with the returns though we were hoping for better. Financing was the hardest nut to crack. That took over a year and I still feel we were made to jump through hoops for big fees.Cheers
JJ&Jo
thanks for the advice guys. That gives me all i ned to know to get it done.
CheersJJ&Jo
We have a few properties in Buffalo and so far it has been a fair return. Not as good as expected or as hoped, but nevertheless worth it.
We have had appraisals done recently after about 1 year and the prices have gone up probably 10% on average with the best being 23%! A couple of others actually went down a bit so it depends on tha area the houses are in.
Problems – A lot of vacancies as the tentants seem to move on regularly. One got trashed after 3 months.
Property management – It is tough to get a good one.
Financing – Still a tough nut to crack and the rates tend to be high.
Definitely not a horror story, but yes, caution required.
Cheers
JJ&Jo
Great news Solomon! We did the same last year, twice! I’m looking forward to further news from you as to how things turn out on your trip.
Cheers
JJ&JoThanks for the replies. It seems caution and research is the best approach.
Cheers
JJ&Jo
Partner A claimed the tax benefits. But I think because it was occupied for part for some of the time it is not subject to CGT. But we will check.
thanksThanks very much for the advice. How would we factor in the rent free period? I can value it easily, but I’m not sure how to include it in the calculations.
ThanksSimon
Thanks for the advice. It is family, so we just jumped in with no idea of any issues down the track. A written agreement up front is the only way to go.Cheers
JJ&Jo
Simon
The only agreement was that they would share in any capital gain if one was realised.JJ&Jo
Steve
I heard it said at your Seminar last Sunday and forgot to put it as a question!
Thanks
JJ
It should not cost more than say $3k-$5k. But the impact on the price of the IP could be close to $20k. Well worth the effort!
Good luck
JJA good place to look is Residex. They have the statistics for many postcodes for the whole of Australia. You can select it by the top 10 growth areas for example. But it is not a clear indication of what will happen in the future.
Good luck
JJAptam
My experience in NZ is that you can no longer buy +CF proerties with decent net returns. You have to do something a bit more creative to get them to be viable.In answer to your question, A lot of peopple are buying them at about 10% in the hope of capital gains. Speculators. Over the last few years that strategy has been quite successful. But it is risky.
Good luck
JJ
Save cash and gain knowledge until you are able to do something. Then start out small, so the risk is not huge. You can still find opportunities for under $100k.
Good luck
JJDear Redfish
Make sure you are aware of the council regulations in relation to the minimum dimensions for subdivision. Go to the relevant council and ask the planner if what you want to do is feasible. Depending on where you are, there are a lot of council charges for each approval. In the northlands district you are looking at about NZD $12,000 in approvals.
You must make sure that the land is connected to the sewrage, a council planner can confirm this for you. Good luck[biggrin]
To the best of my understanding, the bond can be used in lieu of unpaid monies. To this point, you need to apply to the rental bond board and state your case. Your managing agent may also be able to help to facilitate this process.
