Forum Replies Created
that’s brilliant crazy!
yeh people thought I was a bit mad too but i’ve convinced them all over time…you should be able to get a few in the wellie area with that. good luck!oh yeah
lyall bay
building a supermarket huge doodah complex, it’ll be huge. Bit more to get in there, but it’s gonna be the new desirable 7 k from the city beachside and surfing suburb…kinda like a really windy version of bondi…hehewhereabouts in welli are you from?
“What are the implications in buying properties in NZ if you are from another country…. like Australia?
“from
http://www.oic.govt.nz
overseas investment commission of NZSUMMARY
1. New Zealand welcomes and encourages overseas investment from all countries. This is reflected by the facilitative nature of the Government’s overseas investment policies.
2. However, a minimal level of controls over “significant” overseas investment are maintained:
(a)Ê to ensure investment inconsistent with government criteria is discouraged, particularly in relation to certain land; and
(b)Ê for statistical purposes.
3. The Overseas Investment Commission (the Commission) administers the Overseas Investment Regulations 1995 (the Regulations). Under the Regulations an “overseas person” must obtain consent to acquire or take “control” of 25 percent or more of New Zealand:
(a)Ê businesses or property worth more than $50 million;
(b)Ê land over 5 hectares and/or worth more than $10 million;
(c)Ê land on most off-shore islands; and
(d)Ê land over 0.4 hectares that includes or adjoins “sensitive” land over 0.4 hectares (e.g. on specified islands, containing or next to reserves, historic or heritage areas, or lakes); and
(e)Êland over 0.2 hectares that includes or adjoins the foreshore.
4. While 100 percent overseas ownership can be approved in all industry sectors some New Zealand based companies have restrictions relating to foreign ownership.
Consent is required under the Overseas Investment Regulations 1995 for an “overseas person” to acquire a “lifestyle property” in New Zealand where the land exceeds 5 hectares or where the land exceeds 0.4 hectares and involves certain sensitive land over 0.4 hectares (e.g. on islands, containing or next to reserves, historic of heritage areas, or lakes) or where the land exceeds 0.2 hectares and includes or adjoins the foreshore.
2. There are no definitive characteristics constituting a lifestyle block – it is a general term and one that will be determined on a case by case basis. However, generally speaking they are acquisitions that involve overseas persons acquiring land larger in size than any ordinary residential allotment, where the principal use of the land is non-economic in the traditional farming sense, where the values are in excess of value of comparable farmland, and where the overseas person intends to, either permanently or occasionally, live on the land. There are two kinds of purchases by “overseas persons” of lifestyle blocks either as a holiday home or as a home for residency.
3. In general terms, lifestyle applications will normally be viewed favourably, in terms of the national interest test (sections 14D or 14E of the Overseas Investment Act 1973), where the applicant:
a. intends to undertake significant developments on the property and convert it from a lifestyle block into a viable investment property. Such developments (which need to be more than just the erection of a dwelling on the property) include development for forestry, tourist related ventures, etc; or
b. has or is proposing to make other significant investments in New Zealand.
4. If the above factors are not present, lifestyle applications will normally be viewed favourably only when the applicant:
a. has an intention to reside permanently in New Zealand
5. In relation to homes for residency, this intention will normally be demonstrated by the applicant having been granted permanent residency status. With regard to holiday homes, this intention will usually require permanent residency status and an intention to eventually reside permanently in New Zealand.
6. For both kinds of lifestyle blocks, if permanent residency status and an intention to reside in New Zealand are present, and that matter is the deciding factor in approving the application, then it will normally be a condition of the consent that the Applicant reside permanently in New Zealand and cease to be an overseas person within 12 months of the date of any consent being granted and thereafter continue not to be an overseas person.Ê If, after ceasing to be an overseas person, the Applicant subsequently returns to being an overseas person, the Applicant must dispose of the property within such period as stipulated by the Commission of resuming his/her status as an overseas person.Ê
7. Overseas persons wishing to purchase lifestyle blocks who are unlikely to satisfy the national interest test above, are advised that they may still purchase land for lifestyle purposes if the land is less than five hectares in area and it does not include nor adjoin sensitive land (e.g. an island, the foreshore or lake, or reserve etc over 0.4 hectares in area).
8. If you would like to be added to an e-mail mailing list for regular updates about OIC issues, please forward a request to [email protected].
Peter Hill
Assistant Secretarythat’s brilliant crazy!
yeh people thought I was a bit mad too but i’ve convinced them all over time…you should be able to get a few in the wellie area with that. good luck!oh yeah
lyall bay
building a supermarket huge doodah complex, it’ll be huge. Bit more to get in there, but it’s gonna be the new desirable 7 k from the city beachside and surfing suburb…kinda like a really windy version of bondi…hehewhereabouts in welli are you from?
hi there, what does very tight mean? In short supply?
cheers-
Miniheya crazy, I’m a wellingtonian from way back, too
for CF+ve try
naenae
hutt valley
wainuiomata
if not then try the wairarapa…or you could go the other coast….
porirua
titahi baykinda areas perhaps still have opportunities, certainly CG is strong in porirua, I remember reading
guys- if you are quoting Steve –
it’s the 11 second “SoLUTION” not “RULE”.
Big difference. It’s a way of calculation quickly if the property is going to give you a more than 10.4 percent return.
That’s all.However you say that ‘as a rule if a property fulfills the eleven second solution it is most likely to be cashflow positive.’
As in, likely.! One broken hot water cylinder that year could put your numbers out of whack…!!congrats!-
btw i emailed you.
hi there,
I read somewhere that only about 10 percent of properties in Australia are +ve cashflow. that sounds about right. So it’s impossible for the sheep AKA ‘most people’ to buy +ve CF anyway. Even people who know what +ve CF is – and that it exists at all and where you might find them – are not ‘average’ investors.peter- coober pedy??
*gets excited*
*has always wanted to go there!!!*
“waiting till the property bubble bursts”-
I live in Sydney and I don’t think any bubbles have burst for a very long time, or will be bursting.
Sure, there have been years which saw a ‘softening’ of prices – but of the median – and that’s the average of all house prices. i think you’d find that it’s the top of the market that suffers. Bottom 1/4 or 1/3 I think never even ‘softens’ – they just keep on going up.
Sure if you’re thinking of buying a 2.5 million dollar bondi beachfront apartment, wait a bit, there might be a fire-sale or two, but anything under 200K is not going to be part of a bubble bursting – get it now and it’ll be 250 before you can say ‘boo’. Bubble bursts and people will trade down. So i think bottom of market will always go up.
my 2 cents
If I was a spotter, I would ask my prospective buyer a bunch of questions.
What’s your priority?
(some might say ‘cheap’ and ‘yield!’! others might want the security of a larger town and be prepared to pay more for a higher quality house.)
Price range and desired yield? Do you want me to look for house which are tenanted already or vacant ex-owner occupier property? (both have benefits, the latter is more likely to be well maintained!) Do you have a minimum population size in mind for towns you invest in? Would you sacrifice yield for capital gain potential if it was still +ve cashflow? How much deposit do you want to put down? How do you feel about the deal if you’d have to put in 20 or 30 percent? Do you want houses with minimal maintenance/repair issues or you wouldn’t mind renovating? Do you want a large land content or are you interested in ‘low maintenance units’ on smaller blocks? How do you feel about leasehold land, if the returns are there?
Do you want me to fully research the house (making a lot of phone-calls, etc) before I pass you on the deal, or do you want me to just give you the details of any property that looks good on paper (i.e. the list price) and you can make your own calls? How many properties do you want me to find, for you to choose from?
Do you want a written ‘executive summary’ of data about the area, recent sales data, etc….So basically it could be a lot or a little work, and a prospective spotter could charge accordingly.
Richmastery are on to a good thing offering deals on their web-site. I know they have a lot of little ‘elves’ looking, and some of them tried to find 100 ‘deals’ before richmastery accept one and put it on the web. they split the commission with the ‘finder’ (elf!) They obviously take the best ones themselves first – which is how they got the idea to do it for the public -they’d asked their past students ( i guess) to find them deals and if they took them they’d get a fee. There were so many deals coming in that other people said ‘can we have the ones you don’t want?” which gave them the idea to do it as a business. they actually tie the houses up with a contract for usually about 2 weeks, and you have that long to think about it – so they are actually flipping it to you.
Phil Jones said that sometimes he looks at the deals available to the public that nobody’s bought. He sometimes even buys them himself off the web. He was telling people about some incredible deals that had been on the web for 9 days and nobody had bought it, then he ended up getting it.
The trouble with spotters is that if you miss a beat the house has gone before you’ve typed your executive summary.
For that reason, flips I guess are the way to go for the prospective bird-doggie.done! feel free to now delete your email address!
cheers-
minihi there,
another couple of options –a) flip it
b) ask vendor if they can leave 20 percent in the deal.
c) get the vendor to wrap it to you
d) charge a finder’s fee to pass deal on to someone else a few times as a way of earning capital to start
hi there,
another couple of options –a) flip it
b) ask vendor if they can leave 20 percent in the deal.
c) get the vendor to wrap it to you
sans souci in Sydney did really well last year and I have a huge vibe for it and that whole coast line just on the other side of the airport.
probably wouldn’t be CF+ve though, hehe
if you had the capital you could make a fortune doing a cathy jayne style makeover on a whole block.
“Cathy Jayne Developments recently transformed
an ugly, derelict cream-brick apartment block at 98 Seaview Road, West Beach, into a stunning Mediterranean-style building encompassing two townhouses and three apartments.”and a picture of it
http://www.cathyjayne.com.au/media_details.asp?id=5
another one here
http://www.cathyjayne.com.au/media_details.asp?id=3
this is possibly the best one
http://www.cathyjayne.com.au/media_details.asp?id=2
she buys them for $65000, does a $20000 reno and sells them for $199,500
and she does that to a whole block….
and there are lots of blocks in sans souci
hi phil,
‘from the email’?
Someone emailed it to you?
better to ‘save attachment’ to your hard drive. then open with acrobat. (Also then you don’t have to have your email client open to access the chapter. )if that doesn’t work then try downloading file again direct from this website. trash the old one first.
or drop your email address and i can email you the file. !!
cheers-
Mini>it doesnt fit the 11 second rule….but its making just enough to >cover repayments and and a little left over for maintenance.
how much maintenance will you be up for? Have you had a builder’s report? If not, what will you do when you find out you have white ants/sinking stumps/plumbing problems/need new wiring/etc etc etc??
(just painting worst case scenario!! Sorry!!! Thank me later!)
>The area is destined for growth….later rather than sooner
but almost any area would qualify for this lame criteria….
(sorry…being devil’s advocate here….)
>and the house has 12 months guranteed rent.
could be good, could be bad. good because security. is there a catch?
>Is this the time you ignore the 11 second rule…make a few >adjustments to your calculations..and buy the house?
when you say ‘i can’t do better than this deal.’
>Or do you just say screw it…doesnt fit THE 11 second >rule….Ill keep looking?
how long did it take you to find this deal? How much looking?
Did it give you hope that at least you’re getting closer? Did it give you any clues as to what areas you can find these kind of deals in?
Can you negotiate the price down any? You could always try making an offer 20 percent below the list price and see what happens…after all you are a sophisticated investor and if the numbers don’t work out, you’re gonna walk away, right?*anecdotal story from personal experience*
January. Read dolf de roos who says look at 100 properties. looked at 100 properties (in person!!!) Found a cashflow positive property (63,000, renting for $130.)
11 percent return!!! WOW!!!! Got excited. Stitched it up for 58,300 subject to builder’s report. builder’s report came up LEMON!!!! TOTAL lemon!!!! (poor little old lady got ripped off by rapacious tradesmen who did a Sh*^$*&$t job, basically) pulled out. Depressed.Started looking on the internet. Found deals returning 20 percent plus! Bought three of ’em for the price of one of the above, just about.
Wouldn’t have found the deals on the net if i hadn’t got out of the paradigm of having to look at the houses in person.
Because when I did, it didn’t mean anything – i still couldn’t tell a lemon from a plum, and just got emotionally involved, anyway.moral of the story.
especially for you women out there who I think may have the tendency to get more excited/emotionally involved than the guys. (not being sexist and offensive, i hope???)if the numbers don’t work out you may end up seriously out of pocket waiting for that holy grail of capital growth to materialise.
16,000 + 9000 reno/maintenance rented 95 per week
27,300 rented 110 per week
19,000 + 7000 reno/maintenance rented 115 per weekall purchased since April this year
“Steve’s book is really the only one which talks about ONLY investing in positively geared properties. Are these other books a waste of time? I’m getting information overload trying to figure out what is best, although the idea of positive gearing makes the most sense to me”
I think the answer to the first question is the reason why Steve was able to buy so many properties. Buying only positive cashflow properties meant he never maxed out his lending, because the income from the properties meant he wasn’t relying on his earned income to top up the loss.
Not that you can’t make huge amounts with negative gearing,
but as pusha so aptly said ‘I had already reached the Dead End in -ve gearing.”
Which is when you can’t buy any more for the time being.You might be making mad capital gains but there’s a ceiling when you reach the limit of what the bank is prepared to lend you at a particular point in time. Therefore it’s finite. Or, you have to wait till either a) you earn more or b) your property goes up in value so your equity is greater.
If you kept on only buying positive cashflow properties you can keep on buying more as long as you can find them! It’s unlimited. I think the other key to doing that (i.e. what the big-time guns do) is buying in structures (trusts and companies as corporate trustees) which you keep replicating.
I don’t think any of the books are a waste of time. I have got heaps out of Dolf de Roos books as well as CDs of his seminar.
To figure out what’s best for you, see what you are trying to achieve. If you have a high income job and want to keep working at it for a while and are paying lots of tax then who knows, buying in somewhere that went up 58 percent last year and may do something close this year (unless the property bubble bursts) could be a good thing.
Whether a bubble is gonna burst is a whole-nother-thing (as they say in california!) which has been debated elsewhere and comes down to what do you believe? who really knows? What’s the risk?
Positive cashflow properties carry a risk too, which is you don’t get a tenant.
Ah, it’s all just a game of monopoly. As Dolf de Roos says property is very forgiving of ‘mistakes’ as long as you can hold for the long term. Certainly +ve cashflow properties would seem to me to be ‘safer’. A dollar now, or one in the future?
i’ll take the dollar now. It’s worth more, for a start, plus I can start right away to reinvest it.cheers-
Minihi Rod – yeah that’s what i thought.
I was vibing Ron Stoneman. But when I rang up to speak to Ron, I got my young dude (“Junior”) that’s done my insurance broking.
When I said I wanted to talk to Ron, he said Ron only does the ‘front end’ – talks to people at first – and then passes on to Junior for all the actual mortgage finding for people. I thought that Junior was slightly miffed that I hadn’t asked for him straight off. From then on I wasn’t really vibing Junior *at all*.Hmmm.
cheers-
Mini
