Forum Replies Created
hi casey,
>OK under 20k, jezz,, umm well, I have no comment there, but i >guess if thats your cup of tea!!!
well houses have gone up since a few short months ago when I bought these puppies…so it would be under 30.
>Im sorry but i don’t plan to buy in the middle of the desert
me neither. These ones are 40 K away from major tourist destinations, skiing, lakes, etc, 1 hour from an international airport…>My dreams of investing, is maybe a little more home bound…
>1.5yrs ago I backed out of a screamer and i kick myself every >day, I guess it depends on personal risk or drive!!yeah true, but don’t think that that deal was your one chance and you blew it. Maybe it won’t be the same deal in the same town that you’d find now, but you *will* be able to find one (a town, a place, a deal) that is equivalent to where Wagga was 1.5 years ago. ‘the next wagga’ wherever that would be. or the outskirts of.
My first deal I found was 29K, huge section could be subdivided, sitting tenant for 90 who had been there for donkeys’. I missed out on it by a day and kicked myself for ages. Until I found better deals.!!!
>My comment about +ive investments in my town of Wagga >Wagga are now a thing of the past, and this is due to the city >boom, there is no other reason for it, but i spose the injection >of DIY shows on TV contribute followed closely by action >squads etc etc…
yep all of that. Don’t you see a trend that instead of investing being for some, it’s becoming something for many??? and that could be good?
They say that 95 percent of the wealth in the world is controlled by 5 percent. Don’t you see the spread of ‘wealth creation education’ as being a step towards wealth being a little more evenly distributed? (Scandinavia is supposedly the most evenly wealth-distributed country in the world interestingly!)>Thinking outside the square will work if you want to screw >somebody over to make a dollar
this is something I picked up before from your past post but didn’t know if I was supposed to point out. But while you think that making money is wrong, immoral, or other, guess who won’t be making any???
I just thing that accusing the rich of ‘screwing people over’ to make their money is unfair (with exceptions, sure – but let’s say mostly) – and it’s the kinda thing poor people without money say to make themselves feel better if they don’t have any!!
Look around you. Almost every ‘thing’ around you – your computer, your credit card, your fridge, your lampshade – is something that made someone somewhere rich. it doesn’t mean you or anyone else was screwed over.
>I guess it depends on >personal risk or drive!!”
Is putting your money in a term deposit in the bank more moral than putting it in shares for 10 percent? Or property for 20?>Dont get me wrong, I would love to be a millionaire, this is the >reason why im here reading the information that is with held >in these forums, lol (joke)
re: “(lol)??????” – which bit of that comment above is a joke –
that you would love to be a millionaire? That you get good into from reading the forums?if it was a joke i.e. said sarcastically, then you probably won’t ever be a millionaire as long as you believe 1) there are no more deals out there because *they* have got them all
2) being rich means you must have got it by ripping people off, i.e. all rich people are immoral
3) i know everything anyway>Im just expressing my opinion.. BTW i own my home, i got it >before you lot came down my way, lol….
who is ‘you lot’? I have never been ‘down your way’ let alone invested there.
>Umm,,,,About that comment, I was being sarcastic, Sorry no >punn intended, lol…..
yup I’ve noticed that it’s a favourite technique of yours. You say a negative and sarcastic remark, stick “lol joke” after it, and pass it off as humour…..
boy, .!!!! *cracks knuckles and sets out to answer this most challenging post*
” the humble local just cant buy a property nowdays”
Look, I’m a humble local from Paddington, Sydney, where the cheapest houses in the street cost 800K. and i can’t afford to buy where i live. So I agree with you! There will always be people in any given suburb or town that couldn’t afford the repayments on the median priced property. Or any property!! However, those people *could* continue to rent while buying a property *not* where they live. (hey, it worked for me!)
But doing that is something that just doesn’t occur to most people – that they *can* not only do it, but that it could be a good idea for their long term finances! Figures show that the average australian spends 105 percent of what they earn. Credit cards are the biggest growing sector….blah blah….that’s what most people that ‘think they can’t afford to invest’ are really doing with their money.I have been buying in places where the properties are way cheap. Like under 20k. And the average wage in that area is only 13.5 K. i.e. equivalent to a benefit. Those cheap houses reap me a 20 percent return. If local tenants borrowed 100 percent from the bank at current interest rates, they *could* buy the a house for 65 percent less than what they pay in rent. !!!!!!!!! So why don’t they? it IS affordable. If they can afford to rent, they can afford to buy!!
Now convert that into Sydney $$$. The average wage is 100K per year. yeah right!!! It’s not even half that, surely. If that. But let’s talk it up for the benefit of this argument. Can you buy a house for two year’s wages here? No way. Maybe a dilapidated unit and if so, then wayyyyy wayyyyy out of town.
Nah, not even!!So actually the low income people in the small country towns have access to properties *where they live* that are way way more affordable than us city folk, proportionately, even on their wages. And most of them don’t realise that it would be cheaper for them to buy than to rent.
Meanwhile, Mr local yokel wants to sell his house. And none of the locals are buying. Well, who’s he gonna sell to? Someone who’s going to take over the ownership liabilities of repairs, maintenance, rates, tax. etc. If there is a buyer who is willing to pay the price he wants, that’s good isn’t it? It’s the market. Would he judge that person’s money on colour of skin, gender, place of origin, accent, or other? No! A buyer is a buyer.
So what drives house prices up? Booming areas….time…prices of houses just go up over time anyway!
>so then you all pull the wool over there eyes and wrapp a >place to him at over inflated prices, once again pushing >prices up.
If the purchaser (like the country town dude earning 13.5 K per annum in a town where you can get a 3 bdr house for 20K) – can’t afford to buy at market rates, (20K, at 7 percent) they won’t be able to afford to buy at ‘wrapped’ rates. (24 K at 9 percent.) However if the bank thinks they’re a bad credit risk and turns them down, then their option is either to rent for the rest of their lives, or get into their own house. 24K at 9 percent is still gonna be cheaper than renting. Plus, as they build up equity they can cash out the wrap and refinance with a ‘normal’ lender, then the wrapper only made their markup. Fair enough, for the risk they took??? (The markup is to cover the investor for the risk that the purchaser might default, as well as cash out. And the interest rate increase is to make it worthwhile for the wrapper to offer it in the first place. )
Nobody is forcing anyone into a wrap if they don’t want to.
>How can a working class family out bid an investor
easily!! especially when you factor emotional attachment into the equation. Also if you compare something which has been a ‘rental property’ for years to a house that has been a private home for years they’re a really different thing, as you’ll know if you’ve looked at a few houses for sale!!>or for that matter a small local investor…
I’d say most investors are local investors. Most investors are small investors. Only 0.5 percent of investors have more than three properties believe it or not.i think it is way unusual and out of most people’s comfort zones to invest elsewhere despite the fact that we’re on a propertyinvesting forum and feels like ‘we are the world’ – we’re not. Did you know what drives the property market? Owner occupiers buy 92 percent of properties.
>Its seems you have an endless supply of money, and its >driving the prices up….
I personally don’t. In fact I had less than the price of a house in Bathurst, NSW to start with. And even that market was too expensive for me!! The whole thing is you don’t have to have money to be an investor OR a home owner – you can borrow it!! read robert allen for more on how to buy property with no money down!
>SO HOW IN THIS MARKET CAN YOU BUY A +IVE CASH >FLOW INVESTMENT….
save a deposit (in fact not even – banks are lending the whole lot plus a bit more!!) – have a good credit rating, find a deal, and go see the bank.
>GO AWAY AND BUY IN YOUR OWN TOWN
ewwww, that sounds rather redneck….
“we don’t want your kind around herrrre”>And also thinking outside of the square does jack to me, lol…
ah well, running around in circles might work for you then.
You won’t get rich that way, but maybe you wouldn’t be comfortable with yourself if you were, by the sounds of it.seriously though, read books such as ‘real estate riches’ by dolf de roos to give you an idea of what thinking outside the square actually means in property terms.
for example. I read DDR book and one of the things he said to look out for was something that I actually have seen many examples of since. For example. I saw in the paper “80k rented for 140 per week , 3 br house, 2200 m section with subdividable section. “
not CF+ve/11 sec solution. but Let’s say you could subdivide the section and sell off the back chunk for 20K. Then it becomes CF+ve. That’s just one example of what some might call thinking outside the square but i would just call it part of being a savvy investor who can always find deals in any market.
oh great shares gurus,
a friend of mine is doing great with this and says I should stick 100 bucks in it or 20 euros and try it for a while until i feel comfortable….
You can’t join up unless you have a referral. I can join under him. What do you think????
They are returning 1 -2 percent per day.
sounds too good to be true. Is it?
Hi there
I live in Sydney city and there is no way i would be in the property market if I could only buy where I live.
OK so I go far. how far? Close enough to be able to visit at fairly short notice if I need to. No, i don’t inspect the properties. i have a builder do that. I only need to see pictures of the inside and out and beyond that professionals tell me in an 8 page written report the exact condition of every single physical detail of the property as well as other more ’emotional factors’ that I ask them about on the phone, basically they are being my professional pair of eyes.
If there are issues with the property I ask them about ball park figures to repair and then go from there. Either do it now or put off until next year, kinda thing!!
2 out of 3 times the properties i’ve bought have been ‘severely cosmetically challenged’. So either me or my partner has gone there, done the first few days reno work painting (with the help of labour) hiring the tradesmen , get the quotes for the things that will happen after you leave i.e. floor polishing etc.
a project manager (I use the building inspector) instructs and oversees things from there, making sure things get done, and being the man ‘on the spot’ which you definitely need if you’re not there yourself.
Yes you could do a renovation by remote control, but you’d be getting quotes and proceeding at top dollar, and you’d need someone to inspect the work and keep and eye on the tradesmen as well as be paymaster etc. Then it might not be as cost effective. property managers will take care of certain work but not usually anything as major as renovations.
then of course it’s not usually practical to let the place and manage the tenants if you’re not local so I farm that out too.
If the property is cashflow positive even if only after tax and depreciation etc don’t forget it’s going to get better over time as the house goes up in value and the rents should be indexed for inflation.
cheers-
Minihaha!!! people will be saying ‘you are 12 months too late’ forever.
Hey, you might be 12 months too late to get 12 months ago ‘s prices, but cast forward 12 months and the same will be true…you dig???
hi muppet
that was the name I already had and was thinking of using, I have already used them (though not him) for insurance broking, it’s good to get a second opinion!!
thanks for that
cheers-
MiniI would try to buy 5-6 freehold properties returning at least 100 per week in rent. 40 to 50K each. Location *you know where*.
The rest of the money to fix them up. Then get them all valued, tenanted, then go to bank with print out of some lovely paperwork from your flash I am Professional Investor software, including pictures, values, figures, pie graphs, as much meaningful guff as you can make – projections, you name it!!! and try to borrow against them for a LOC. Perhaps individually though, because I heard that cross-collateralisation isn’t the go. So let’s say you can borrow 200K, then you can used that as a 20 percent deposit on a million dollars worth of further CF+ve properties…or a mix of some CF+ve and some for Cap Gain…or you PPOR in a cap gain area….which should be ‘rent free’ just about…or 30 percent deposit on some nice commercial property…maybe a small block of apartments or something??cheers- Mini
hehe, which is coincidentally (not!) exactly like what I am trying to do, except with less capital!In NZ!!!
I have someone in mind to use but just before I do i thought i would canvass the fellow homiez here to see if anyone has had a good experience and wouldn’t mind referring me….
(yeah BC!)
A sentence out of an email I got just now “I still can’t get over
the abundancy of high yielding properties”….so it’s not just me out there finding deals – and we’re in the same world that you are looking in.
Some more help – if you spend 220 at residex.com.au you can get a list of the postcodes most likely to have +ve cashflow properties in Australia.
if you want it easier than that, then use a propertyfinder service such as richmastery.co.nz or richmastery.com.au (who will source the property for you for a finder’s fee of around 5k.)
Could be a good way of getting into the market if you don’t have time to look – or ask around privately. partner with someone. pay someone.Some people, no matter how much you try to help them and show them, will find a thousand “yeah-but” ‘s that’ll stop them in their tracks. Fine and so be it, whatever you believe that’s what the truth will be.
cheers-
MiniI agree that you can’t get that kind of priceless local knowledge info without being on the spot. But if I was limiting buying where i could ‘be on the spot’ I wouldn’t have bought any by now- !! And as it happens i have three – none of which I inspected in person before i bought!!! (but had a professional do it!!!)
what led me to being comfortable doing that was after a whole summer looking in person for probably at least 2 weeks full time, and narrowing it down to a house I thought was great, in a hot area and CF+ve, I had to pull out after the builder’s report came up a total lemon. From rotting piles (supposedly re-piled) to shot wiring (supposedly rewired) to rotten floors, rising damp, you name it.
So from then on i thought – what is the point of me inspecting properties? I just get emotionally attached!! After all I am supposed to be buying on the numbers and the builder’s report. But it is harder by remote control (though not impossible) to get the kind of info you got by talking to the locals.
cheers-
MiniHungry,
you are so welcome.>You’ve cleared my mind considerably. That is no mean feat !!!
well I’ve been clearing my own too so to speak for the last year or more!!>I have made contact with a solicitor in the north. Can I use >this guy with any property transaction in NZ, or is it more >convenient to use a local person from the area you are >buying in? I’m thinking stick with one!?
yeah I reckon. I picked a lawyer initially near where I was first buying. He had knowledge of the area which was good. However I ended up buying elsewhere and am still using him.
And will continue to do so! nowadays I don’t necessarily need my lawyer to advise on an area or have local knowledge, i get that from other sources, it’s just basic conveyancing.cheers-
Mini‘as seen on a current affair”
i think this is the one you mean???hi there hungry,
sorry to hear you’ve missed out so far but keep making offers and you’ll get one eventually. I have been hearing that there are properties on the net still that have already been sold though, but I am expecting that we’re coming in to the season where more houses are put on the market, i think spring is a time for movement. The rental agents tell me that too.
“it is tough buying from Japan”
no tougher than buying from Aus and hey it worked for me!
the only problems are due diligence on the area, street, property from distance – basically I wouldn’t buy sight unseen without a builder’s report and a lot of phone calls to anyone I can think of who can give me any clues about the property and the area (competing rental agents for example)>What do most people on the forum do when it comes to >making an offer?
I put in offers subject to due diligence such as builder’s report, title, tenant documents, LIM report (if you don’t know what that is touch base with a NZ lawyer you will be using and ask. You will need a lawyer lined up anyway when you make the offer.)>Do you always make a formal conditional offer
yep – mostly the RE agents want your offer in writing, they take the details over the phone, write it up on the standard NZ real estate form which all agents must use, fax it to you, you sign, and then it gets presented to the vendor and you’ll get accepted, rejected, or the counter offers begin. In one area of NZ in a small town the RE agent said ‘The way we do it here is negotiate it before we write it up’ so I went along with that as he’d known the vendor very well for 100 years and the vendor owned 74 properties in the area!!! – and I bought two houses that way, which were negotiated and agreed before the offer was written up. Still had all the conditions etc i wanted, it was just the price which was haggled before things got written up. I am in contact with my lawyer at all stages of the negotiation process, too.“Is it not unusual to make unconditional offers in this current NZ market? “
I have heard that there is a lot of competition in some hot areas
(NZ is the new Tasmania???!!!) and I guess it depends where you’re buying. Personally I don’t think I’d ever risk making an unconditional offer on a house that i hadn’t had building inspected, especially if I hadn’t seen it myself!
I think though that if you are able to make cash offers not subject to finance you can get a better price, are taken more seriously, and they tend to not mind about the other clauses so much – because finance falling through is the most common reason deals fall over.>I’ve also heard people saying they make 30 or 40 offers for >every one that is accepted.
‘lowballing’. I haven’t resorted to that myself and hopefully never will. I make 3-4 offers per property on the way to arriving at the final agreed price. I know that’s not what you meant though. Once I had two offers going on two houses that I knew I could only get one of. It didn’t make me feel that comfortable even though I could have got out of one by saying that the house was not ‘satisfactory’ after inspection. I am not attracted to that strategy really. However if you want to buy several at a time it would be par for the course that you would have multiple offers going.
>Does that mean that you actually make multiple offers or do >you have to wait to hear a yes or no from your previous >offer before you can move on to another house/offer???
depends on if you have conditions in your offer that mean you can get out if say all 40 were accepted.stay hungry
cheers-
MiniPS Muppet!! We are coming to see you some time in the second week of November! Me and another Certain Special Person off this forum!!!!
hi insider
i sent you the stuff
you can remove your email address off the post if you want
cheers-
minihey pinky,
I don’t have people in my ‘real life’ that I can bore stupid with the ins and outs of property investing either and so I post a lot on the forum. we’re all mentoring eachother, really!
My motivation….hmmmlesseee….
I like the thought of being successful – not just creatively, spiritually, physically, intellectually, and emotionally but also financially. In fact I think that a successful person is successful in all those areas.becoming financially independent – or ‘free’ – just means freedom in all areas. to me this is a very important step in moving from fear/lack belief to abundance.
Hi Davo,
I don’t actually know about landlord’s insurance specifically – what that means.
I think an insurance broker would definitely help.When insuring my houses (which were worth 25-35K) my mortgage broker gave me two prices, one based on total replacement (1200 p,a,) versus around $290 P.a. (up to a dollar amount.) The basis of that was that if you house say burned down and you’d have to rebuild, it would cost 5 times more than what you paid for the house. I went for the lower premium, figuring that worst case if my 27K house burns down I get 40K back (what I insured it for) and can sell the land as a section and then buy a new house and land with the proceeds. Interestingly enough, even this cheap premium covered me for damage that happened when i had a fire recently (though only up to 6K ‘per event’ – more than enough) as well as loss of rent in that time.
I am not sure if I would be covered for malicious damage, though….the way I figure it is that I think choosing a rental manager who only puts good tenants in there is more likely to ‘insure you’ it doesn’t happen than ‘damage insurance’ after the fact! Insurance claims are a pain and take ages and really I’d rather not have to ever claim, though i am happy to pay an insurance premium so I can sleep at night.!
>Secondly the risk of Earthquake is much higher in NZ than >Australia.
I’m from Wellington, which is on a fault line, as is most of the Hutt valley. I haven’t ever been in a big scary one where things flew off shelves and you had to get under the table or doors, though. So I guess the locals are almost blase about it –
just the earth’s way of letting off tension. On fault-lines wooden houses are a lot more common, or, if they’re made of concrete or brick, it’s reinforced. Wooden houses are usually fine in an earthquake, even quite a big one. Most of the time earthquakes just feel like a big truck drove past your place and the cupboards rattled a bit.However Napier had a huge earthquake in the 20’s and the whole town fell down. And was rebuilt deco-style which has made it the tourist destination it is today. I guess there is a risk, moreso than Australia, but again just check your policy.
>If my house is flatten by a big quake will it be rebuilt, will I get >lost rent etc.
Like I said before ‘rebuilt’ insurance costs a lot more than ‘dollar value’ insurance and in the areas I’ve been buying I haven’t worried about total replacement insurance because I figure I can just buy another house instead.
>I know these seem like silly questions but I a little panic attack >last night.
not at all i totally get where you’re coming from. There’s more of a fear factor investing in unknown territory
cheers-
Minihi insider
drop your email addressRe car rentals, my boyfriend and I have used quite a lot of different firms and we’ve ended up working our way up from
such firms ashttp://www.rentadent.co.nz
http://www.a2brentals.co.nz
http://www.carrentalsnewzealand.co.nz
http://www.hirecar.co.nz
(25 bucks a day)
http://www.dollar-save.co.nz
http://www.dcr.co.nz
http://www.nz-rental-car.co.nz
http://www.autohire.co.nzbut after too many bad experiences i.e. being stuck in the South Island with a car with dodgy brakes from some cheap Auckland hire-outfit, not to mention difficulty in returning car if other than a round trip, nowadays we use Maui or Avis
great service, lots of outlets, one way hires, upgrades to next model, air points, etc etc
hi Karen
I think Rotorua is a fabulous place, it’s one of the top tourist destinations, it has a lot of beautiful lakes all over the place i.e. a lot of waterfront properties!! – and about a year ago it was a hot place to buy because it had capital gain as well as +ve cashflow. (think maybe cap gain has flattened a bit lately ???) Yes it smells of sulphur but when you bend down and feel the ground and it’s hot, see some geysers and boiling mud pools, take a bath in a natural mineral pool or check out how many houses use the natural thermal activity to have hot spas for free – not to mention use the geothermal energy for water and home heating, it all makes sense!! Also you don’t smell the smell any more after a while. And it’s a therapeutic kind of smell, honest it is….I adore it!! I love driving in to Rotorua and being hit by it!
Didn’t know about that other stuff but it makes sense.for the NZ magazine Kiwi Property Investor Magazine.
you can subscribe online as well as order back-issues.
KtKiwi tells us there’s going to be another one soon which is more ‘independent’ – some see KPI as a vehicle for the advancement of the Richmastery empire, which i would agree with to some extent, although it of course has a lot of great articles about hot areas, specialist investing, data, etc etc
I subscribe to it and plan to subscribe to the other one too when it happens. KPI is my fave magazine at the moment for obvious reasons!!
