Forum Replies Created
Thanks for the answers everyone I got a good deal through ANZ although it was not with them. Their computers were down so they got another company to call me, they even faxed all my polices to my Solicitor in Invercargill.
KerwynHi Woodsman
You could be right but it depends on noworks ability to do the work or most of the work himself.
My first attempt was a Reno and it worked out really good: bought at $225000 spent $4000 and had it revalued at $265000 (post boom).
So it can work.
Kerwyn.Hi Hihopes
Why not try giving a weeks free rent at the higher end of your asking price. You could be surprised with the response to this.
Kerwyn.Hi landt
It is the NZ government that has a policy of keeping the rates just a little higher to bring in overseas money.
It is a very fine line they run with interest rates; if they make them too low, say the same as OZ then the big money dealers prefer to put the money into OZ. If they make them too high then the NZ dollar goes up and exports suffer. This is a simplification buy it is close enough.
Kerwyn.Hi Nowork
Hmmm! From what I understand it all comes down to finding your own niche in the market. It also depends on where you live. Property is not a get rich scheme it takes a lot of planing, reading and listening to other people with a lot more experience.
I believe the best place to start is do a reno, find something cheap fix it up and you have instant equity, money out of thin air.
There are a lot of other things you can do but you need some education. Get Steve’s books and read them if you haven’t already. Then do your self a big favor and buy Craig Turnbull’s 3 books they are cheap. You should at the end of these know exactly were you fit in the scheme of things.
Kerwyn.Hi Turboz
From my dealings I have found Harcourts are very professional. So professional that they saved me making a bad deal through another agent.
kerwynHi All
If you shop around you can get 90% for Tokoroa I did. Got a great deal on interest rate too.
See Property GuRu
KerwynHi Jenny
Gee Jenny you never told me that I was nice and pleasent, “just joking”[biggrin]
Good to see you on the form, hope you haven’t sold everything when I get back in April.
See you then
Bill & Irina.Hi All
Although I am about 1 second old compared to the years of experience Monopoly has in the property investing sphere I am considerably older in age, (by the way nice photo Monopoly). I have been in business nearly all my life and have seen the good and the bad. I have been the top roaster one day and a feather duster the next.
One thing I have learned is it is better to be proactive than reactive to any situation and I think property is no different. Interest rates are going to go up and that is a huge mistake by the reserve bank. I can tell you things are not good out in the business world, people are not spending. I have friends who normally make a big slice of their income in Dec, Jan who are down 80% on normal; a rise in rates will spell disaster for a lot of people.
Yet on the positive side the property boom was driven by a lot of so called mum and dad investors who were told to buy property as a hinge against old age and the fact that there is not going to be a pension available to them in 15 to 30 years time. Most of these people are heavily negative geared and it will not take much before there is a stampede out of the market by reactive people. This is good for the serious investor who will be able to finally get a few bargains.
I unfortunately missed the housing boom as I was playing the part of a feather duster at the start and couldn’t participate: but I intend to make up for that in the down turn. Sure there may not be a lot of capital gain around for awhile, but there are plenty of other strategies that can be used to make money in property, you just have to be a bit creative.When I was a child I lived in Sydney around the Hurstville area. I remember a kindly old lady who was our landlord at the time who use to give me 2 shillings every time she came to pick up the rent. I later found out when I was older that she was a very wealth lady and not only owned the house I lived in but she owned streets of houses and shops all around Hurstville. She bought these when she was young in the great depression by going around collecting rags and selling them to people who made cotton waste. She then bought houses that people just could not afford to keep at bargain prices.
She is the ultimate example of being proactive when times get tough and although we are far away from a depression her example is still relevant today. It proves that a lot of money can be made when other people are reacting to things instead of being proactive.
I hope this helps anyone out there who is feeling a bit anxious at the thought of rising interest rates.
Kerwyn.Same old stuff from the losers of the world. The thick headed opinionated people who wouldn’t believe in ET if one landed in their backyard.
It is sad really that people like Jenman can say things without any understanding of the concepts being taught by these so called spruikers.
Well I for one would like to thank the spruiker who got me into the property investing area. I now have an extra $40000 that I didn’t have 4 months ago and I didn’t even rip anyone off.
KerwynHi Wayne
Yeah I had the same problem with Westpac in January even before the new laws started in Feb. I was in NZ and they just refused to open an account. The law has something to do with banks with Aussie affiliates so any banks like ANZ, National etc could be a problem. I got around it by going into a bank of NZ and opened an account no problem.
It’s good to see the government still trying to stick it to us investors, wouldn’t want them to go soft on us.
You should have a talk with ‘PropertyGuRu’ about finance, Amit will get you a good deal with little hastle.
Kerwyn.Hi Leila
I have just finished my first reno. I bought the place 3 months ago for $225000 I spent $3000 on the reno had it valued today at $270000.
My WOW factor was in 5 areas,
1st I painted the place inside and out using heritage green on the gutters and the hardiplank parts of the building and a very pale green inside; the building is mainly brick outside.
2nd it had a carport under the same roofline, I simply filled in the carport turning it into a garage.
3rd I ripped up the carpet in the lounge and put down a wood floating floor and new carpet in the bedrooms. This was my best wow point even though the flooring only cost $18sm at Bunnings
4th I went to an auction and bought some fancy fittings for the bathroom, toilet and kitchen, cost $300. This completely changed the look of the house.
5th I put in a easy care frontyard, took out the mangy lawn or what was left of it and replaced it with red gravel and a few nice plants and flowers plenty of colour.
Worked real well for me.
KerwynHi All
I tend to agree with Westan if everyone comes to Invercargill with a dozen or so spray cans we maybe able to raise the temp a bit and turn it into the NZ Gold coast. Just think of all the money we could make selling all our investment properties to the unsuspecting Japanese, we could all be millionaires.
Got to make hay while the sun shines, unfortunately that doesn’t happen much in Invercargill.
Kerwyn.Hi Wayne
I tend to agree with you as I have been involved with two of your examples and still with the alternative medicine/herbal business.
It is a case in point at the moment where the large pharmeceutical companies are trying to dump on the alternative medicine industry by releasing a bunch of negitive rubbish to discredit them. While the real facts are that they are starting to lose market share and their profits are falling.
I think I will have ago at trying an L/O with one of my properties in NZ and see what happens.
KerwynHi Trish
I was in NZ last week looking at a property and the agent pointed out that some of the boards had been replaced. She said the old weatherside had been replaced with Hardiplank. So I think Castledreamer is correct.Kerwyn
Hi All
I will add a little here.
As far as I am aware there is no law to make you collect a bond on a L/O.
What you should do though is to collect a non-refundable option fee and at least 2 weeks rent in advance, 4 would be better if you can get it. This is a bit of protection if your buyer does a runner.
The good thing is that if they do a runner 2 or 3 years down the track then you get to L/O your place all over again and probably for more money.
Kerwyn.Thanks MiniMogul amd Westan
You make sense from a vendor’s point of view. What concerns me with the cash clause is the person who comes in with the cash doesn’t have time to get a building report. When they invoke the clause they are locked into buying the property even if it is a dud.
My point is that cashed up Aussie buyers who are flocking to NZ are not taking their time to check out the property: just because something is cheap doesn’t make it a good buy.
I know it is their problem for rushing in and if they get stuck with a dud then it was their choice.
The problem is that these people are driving the market up because they are buying everything in sight without doing their due diligence. This impacts on the investors who are trying to check the property out properly, who are being forced to move quicker than they want to in fear of missing out. It is great for the vendor as they can off load that dud property and some sucker will buy it without checking.
All I am saying to these people, is do your due diligence and stop playing into the real estate agents hands and helping them get rich.
Kerwyn.Hi Pix
I was in Christchurch last week and the prices of houses are very high. On par with houses in the major cities in Oz and the rent returns are not that good. You maybe able to find a house needing a bit of work and value add but it would not be easy.
Kerwyn.NZ- Going unconditional – Au- exchange of contract
KerwynAnswer in one: False.
Just follow Terry’s advice.
Kerwyn
