(from the article)

‘She said a housing investment program was needed, with more institutional investors,’

ahm, is that like communism or something?

So here’s the other thing about +ve CF property. It means that it would be cheaper for the tenants to buy than rent. So why don’t they?
the answer is 90 percent money habits and 10 percent…[Read more]

It’s one of those nightmares that comes up all too often.

Multi-fuel burners in NZ are often illegal and what it means is if there’s a fire and the fireplace didn’t hav a permit (i.e. illegal) or wasn’t code-compliant (i.e. illegal) then the insurance has a reason to not pay out if the fire was caused by that.

It’s also garages. Often people…[Read more]

hi Rod,

> “mini,
> I reckon you’ll find that rents move like (but not necessarily with) house
> prices, some years they will increase, some they will stay the same and
> sometimes they may even decrease.

I quite agree..

but I keep thinking of KtKiwi’s example of the 10k house in 1991 rented for $20 per week which in 2003 was worth $50K, rented…[Read more]

It’s a conditional *offer* that has a period of time for the purchaser to undertake the due diligence. If you get your builder’s report back and it’s stuffed, you can pull out.
because your conditions weren’t met.
Elysium, it’s not ‘uncertain’, that’s why contracts and lawyers are involved!!

I think it’s called the cooling off period in Aus but…[Read more]

“8 years of 15-20% CG’s p.a.”

I’m going to only buy positive CF properties for a while until growth happens again. let’s say that is 4 years away (halving the length of the property cycle.)

So i’m aiming for 8 years of 15-20 percent cashflow yields, instead. (And did i mention my property managers advised me to raise the rent 10 per week in…[Read more]

what an extremely legendary reply Kiwi, i salute you
*salutes*

‘subject to…’, but does that mean subject to anything?

yeah. i.e. subject to satisfactory builder’s report, subject to finance, subject to satisfactory assessment for rental, subject to partner’s approvsal, whatever you like.

More conditions = vendor less likely to go for it, but temper that with a cash offer usually goes a long way -…[Read more]

I’m with the agent.
the market seems to be pricing your land higher than you priced it yourself. go with it! i say go for the higest offer with the conditions. Anyone spending money on inspections is serious, otherwise they wouldn’t bother. they are just doing due diligence as people should (but most don’t!) If it falls over, sounds like you won’t…[Read more]

hi Michael,

…seems my offer of 16.4 million was a little too low…

seriously, I’d be there if i could.

cheers-
mini

*aaaaaaaaaarrrggggghhhhhhhhhhhh*

the relief that this is out in the open is excruciating

hey jancrows,

lots of lessons in what you said! *grin*

1) There is a 20 year trend that the demand for chocolate cake will continue.

2) Experience won’t necessarily make you any more money.

3) A person in the game for short time can do better than a veteran.

4) Do you still want to be baking cakes in 20 years?

cheers-
Mini

Hiya Bruce,

> I think you need to provide reassurance on is tenancies.

I put a conditional due diligence clause in the contracts re: tenants.
Clients will get detailed info on this.

>We all know
> marketeers promise 18 months or whatever of guaranteed returns, only because
> they do dirty deals with tenants.

There is no guarantee that any…[Read more]

here’s a steve mc knight tip – if Harvey Norman are going in there, then it’s a good town to invest in. Apparently they do major research when they figure out where to put their stores.

cheers-
mini

hi all,

this is brilliant, this is market research right at the coal-face.

> 1) Forum members appear to Fear being screwed by an unscrupulous Bird Dogger,

yup. I was trying to figure out how a bird-dogger could be unscrupulous. If you could lie about the rent or something to make the numbers look better and then they’re bull. well, we won’t be…[Read more]

hi Bruce,

finance is not a part of what bird-dogs do IMO. All the people I’ve bird-dogged for have organised finance before they purchased (such as LOC on Aussie property) and made cash offers.

If you do find there’s a foreign exchange problem because of Aus. finance on NZ property, then you could always change to finance in NZ after the fact…[Read more]

> Sounds great Mini, but you said 8 weeks would be worse case as far as
> vacancy?, how do you assume it won`t be 30 weeks?

no I didn’t mean that, i meant that a 15 percent yielding property even with an 8 week vacancy ( a lot – and why? There’s no need for long vacancies. It just means your property is overpriced for what it is and tenants are…[Read more]

Billfromoz,

*sigh*

It’s not that expect you to be *for* me in any way given that you are still probably smarting from our last run-in. It’s just that the thing I don’t kind of *get* is why someone so against property investing spends such a lot of time on a PI forum.

I agree that you can’t rely on CG, which is why +ve CF is so fabulous. If you…[Read more]

hi Markpatric,

> Hi Mini, one question, you guessed it, why don`t you buy them!,

well actually the first three I found were three ‘spares’ – when I was looking for myself. The ones i initially posted a while back. November, i think.

>surely you
> could purchase these at the drop of a hat,

The ‘speed’ I’m going at is that i’m buying one every…[Read more]

They are not hovels. Although, what i did was

buy hovel + spend 10k do up = get 20 percent return straight away. (More like 22 percent after recent first rent increase recommended by property manager after 9 months.)

The deals i get for clients are different. A little more expensive, but a better quality house and location. Sitting tenant means,…[Read more]

Thanks Michael,

I don’t know whether I mentioned it or forgot, but the company structure I set up recently wasn’t for a property deal, it was for another type of project.
Although I thought was still worth mentioning, your comments were very interesting and give me a better understanding of the differences in companies and joint ventures and…[Read more]