Hi.
Hey Zen, you are completely correct. I most likely couldn’t get the same results if I started today, that’s why I’m not starting today! and also why I have cashed up my IP’s. The great thing about residentaial property is that there are ways of completely eliminating your risk,(buy +cf in good areas where the demand is certain, etc.) The…[Read more]

I havn’t read the article, but might have a similar story. Two years ago at 28 years old and with about $250k equity I gave up work to invest in res property, after 1 year my wife also left work. It’s great, in fact have just sold the last of our properties to invest in other things. In two years I purchased property worth about 2.5m. Last year I…[Read more]

Hi all.
I’m a kiwi (don’t hold that agaist me!) and have just sold all 10 of my IP’s. Not that I have lost faith in res property, I just think it will be a long time before we see any real captial gain after two very strong years. Most of my properties had doubled in the last 18 months so I’m taking the gains (tax free) and looking at other…[Read more]

Hi, does this land tax apply in every state ? Queensland ?

Hi HappyBandit,
Your question really is “how can I recycle my deposit ?”
when buying property I look firstly at how quickly I can pull the total money invested back out again, then after this I look at cash flow.
The easist method to do this is to buy under market value or a property that can have value added. Borrow 100% of the purchase price…[Read more]

Hi Kay,
In NZ properties that meet my 2.5 rule can still be found quite easly !!! it’s just a matter of picking locations that will give low vacancies and better growth prospects. Happy hutting[]

Hi,
I’ve always used this rule : purchase price divided by 1000(knock off three zeros) times 2.5 = weekly rent. eg $100,000 rent at $250 pw, $60,000 rent at $150pw. etc.
This is abit simpler than the S.I.S rule, after all it is only to knock out properties that arn’t worth looking at in more closly

Me too, thanks a million ross.katrina(at)xtra.co.nz

Familyfirst,
mate !!! where have you been looking in NZ if you can’t find +cash IP’s ? Every town in the country has them (some you wouldn’t really call towns [])Don’t get lazy eh !

Hi Sue,
(LIM) = land information memorandum. A LIM is availble from the local district council and contains info concerning the property ie rates, water charges, stormwater drains, concents, certificates and any special features or characteristics that are knowen to the council.
Cost = $200-$300 and take 5-10 days.
Forms an important part of Due diligence

I should pick horses ! RBNZ leaves OCR at 5%[^]

Hey Bear,
You can add Value by 1001 different ways, the more “bang for your buck” the better. Mow the lawns and tidy up the grounds is a good start, paint ( talk to a paint shop about mis-tinted paint, it’s cheap), carpert, carport or I’ve found getting a decent tenent with good furniture always makes the place appear much nicer so in turn…[Read more]

New Plymouth, New Zealand

Yes I use a LOC over my PPoR to buy IP into, I add value then mortgage the property to pay back the LOC account, then buy next property into LOC. The advantage of this is you can act quickly when you see a deal you like and it keeps your equity revolving.

Westan,
Had any more thoughts on “S….” and “W….” in NZ.

My pick is that they will leave it at 5% untill end of Jan, But with the Aussie going another .25 it will put even more pressure on . Inflation is not a problem at present, so the only reason they will lift it is to slow the property market down

Any bets on the RBNZ rates due tomorrow ?? as nz is now lower than Aussie’s. When was the last time that happened [?]

Hi Rebecca,
I’m not for or against ESC. Give us some FACTS on why, In your books they are so dodgy !!! Or is it just your OPINION ?? I have researched afew of their deals in my own area in NZ. While I have not purchased any, they aren’t too bad either (I do know this market as have brought 9 properties in the last 12 months)

Lazyboy

Hi Westan,
I’m from New Plymouth, westen side of the north island.Our property market was quite flat for about 5-6 years, was great for buying cashflow +ive property. ie $80000 returning $$190-210 pw were common. But pretty hard to match deals like that now !!! Capital growth has taken over , local prices are up by about 30% on average over last…[Read more]

Hi Namaste,
thanks for the help.
Finding it interesting learning where your Aussie property market is at ! In NZ we are at a earlier stage of the boom cycle.