Hey there,
Just a suggestion, Get at least 2 independant property managers to go throug the property and get a rental appraisal and also see if there is anything that may allow an increase in rental return.
This will give you an idea of the worst case scenario that your tennant pulls the pin you are not left hanging off the lemon tree!
Cheers
Kiwi

Cheers guys,
Any more info people?

hey there,
A few questions to answer yourself
-Is the house priced below market?
– Are the sellers really motivated?
– How much cash are you putting up for option?
– Why can’t they sell in open market?
– Are you prepared to lose the option fee if you are unable to service the monthly repayments….

remember that you have to create a win/win on…[Read more]

But Most of all…… HAVE AN EXIT PLAN BELFORE YOU BUY!
Cheers
Kiwi

1. Try to make sure you buy below market value … or at least at or just below median price of the area….
2. Look at current market and assess your position as to what he market is doing currently (Rising, Flattened or soft).
3. Assess your costs and realisitic realisation of your renovatoins in capital gain?
4. Work out your holding time and…[Read more]

Hey There Happy Jack!,
Few things…. reaching an agreeable fee is like buying a house at the right price… it all comes down to an mutual agreement between buyers agent and purchaser (assignee)…. best thing to do is …. compare the market place and see what it has to offer and then compare the service(s) each ofers to the client…. Ease of…[Read more]

I just got 2 unconditional last week in NZ ……
Gross yields of
Prop #1 = PP: $79K — Rent $170/week
Yeild = 11.18%

Prop #2 =
PP: $95K— Rent $205/week
Yeild= 11.22%

I Like NZ for a number of reasons:
1. Great Place
2. From There … but now live in Sydney
3. No Stamps
4. Good LVR Leverage if borrowing locally from NZ lenders
5. Good…[Read more]

Hey Guys,
I have just gone unconditional on aonther deal similar only it is a single dwelling…. We did not know about hte roof at all and as far as the agent was concerned the house was in good nick aprat from a bit of floor vinyl in serious need of replacement. We did a full building report and the roof was absolutely stuffed!… so we hit them…[Read more]

Not enough fat in it for me.
only returning 8% yeild and you will haveto come up with at lest 30-40% of the buy price… I would keep looking and find a more attractive deal…. good spotting though. With commercial delas you could look at returns higher than 17% yeild as you have more of your cash invested in the deal.
Cheers
Kiwi

Hi There,
It looks like you have the perfect cash cow already!

If you look at the cashflow angle …. and do not want to haveto fund any of the borrowings out of your pocket, I would suggest.
Refinance completely to a maximum line of credit of $170,000

This will give you a cash exposiure of 10.4% ($340×52 divided by $70000-current outstanding…[Read more]

Hi Thre Elkam,
The IRR is a comparative tool to compare a property against a property and uses a very complex set of calculations.
The considerations to calcualte this are:
– Rates
– Purchase costs
– Renovation costs
– Maintenance
– Repairs
– Vacancy rates
– closing costs
– True market value
– Mortgage Application Fees
– Your income level
-…[Read more]

Hey Guys,
I prefer to lock in the rate and then set and forget… nothing worse than when you thoguth you had it all covered and then found the rates have increased to swing it from + to – cashflow!

Anyway I suppose all courses for horses!
Cheers
Kiwi

Here is a suggestion you could try,
Let it at a lower than market rate say 20-25% lower to compensate for the inconvenience of all the works going on in the back yard…and give them the incentive that if they take care of it you will assist them with moving into another property if the need arises.

Here’s another idea……
You can draw more equity out of your investment properties, buy more properties and use the cashflow from the positive cashflow houses to pay off your own home repayments …. You could then get a LOC on your PPOR and then only use the funds avaialable to buy only + CHFLOW properties. After all it is not so much about…[Read more]

Hey there,
Second registered mortgage still does not give any 100% assurances that hte vendor will get thier piece of the pie either… if the market slumps and the property loses sales value to a price below the outstanding debt…and the deal goes pear shaped and hte bank forecloses….. the registered 2nd mortgagee gets the crumbs if any AFTER…[Read more]

How about finding out how much cash the Seller needs to address his current financial challenges…. then you may be able to get a starting point so you know where you need to be to solve that part.

What you could do is this….
Offer the seller the cash to solve his problems and then lease option for 5 years or more on the property … offering…[Read more]

I agree… the PM could be the issue here…… you may need to look into finding either a better motivated one …. or one that actually knows what they are doing. Ring around other agenst and find out hte average time fram good houses (similar to yours) is currently takeing to rent…. BUT FIRST ask them if they have any on the books, how much…[Read more]

Hey all,
I have read this thread and there is no answer to some of the questions. As far as NZ tax and Aussie tax implications go … we set up an NZ based Company and trust.

– All income goes into an NZ bank account and stays here to cover repayments, Maintenence and to buy more properties.

The way we set this up was so that we did not have to…[Read more]

Hey Rumin,
You can get insurance to cover loss of income from tennants …. perhaps you should get a good solid policy so you can sleep at night.
Cheers,
Kiwi

“A RECORD number of New South Wales families lost their homes last year as growing numbers struggled to meet mortgage commitments”

Hey HB …. Good point here…. however most people should get familiar with how money works and cover all your risks….
What are the risks with owning yourown house?

1.Rising interest rates…..SOLUTION? = Set…[Read more]