My accountant in Melbourne is pretty switched on and has done work for me over the last year and a half dealing with NZ, various property purchases and liaising with NZ accountants.

Details are:

David Brandi
Level 3
62 Lygon Street
CARLTON VIC 3053

Ph: (03) 9650 0550

Cheers

Nic

Salutations

When negotiating on property purchase price, after you’ve made your first offer and received the vendor’s counter offer, offer two prices. First a price if they pay for the inspection report/pest inspection/LIM report/whatever. The second price is if you organise the reports but this price is significantly lower than what the reports will actually cost you. Most people are lazy/can’t be bothered/too busy to organise these things and you can get a good little discount from your offer that goes into your pocket.

Cheers

Nic

G’day Kylesbm

Sent you an e-mail yesterday re your last post.

Cheers

Nic

Hello to all.

I live in Fitzroy North (about 2-3 km out of Melb. CBD) having moved from Colac (Western Victoria) via Cairns and Canberra.

Cheers

Nic

Good afternoon Pat

From what you’ve said I’d say the main reason finance might be a problem is that a lot of lending institutions are very wary of lending for CBD units due to the oversupply of units in the Syd. and Melb. CBDs. They are concerned that the oversupply could lead to a drop in price if vacancies increase and/or a lot of units hit the sale market at the same time. There are several reasons for their thinking but too long to go into here. If you want to e-mail me I can provide a longer answer for you.

However, given what you’ve said about their rental guarantees and without knowing your financial situation I find it hard to understand why you can’t get finance.

With regards checking up on the viability of the whole thing, I would ask the company for some referees both long term and recent clients. If they are legitimate, they shouldn’t have a problem telling you.

I’d certainly be interested in following up on this if you’d be prepared to give me the name of the company selling the units.

Regardless, good luck with them.

Best wishes

Nic
[email protected]

I have put a deposit on a unit in Sydney CBD and have been advised not to touch it. It has also been difficult getting a loan for it.

There are no outgoings as the management looks after it incl. council rates, water/elec rates, B/corp etc. The only outgoings is for GST management that they look after as it is required.
Furthermore there is even a guranteed rental agreement for 10yrs so there will be no vacancies for it and after that another 20yrs at 5 year renewable intervals. There’s a rise in rental after 3yrs and is also pegged to the CPI; whichever is higher ie. I have a + cash flow from day one. It’s even completely furnished and will be maintained by them.

So what is the downside in it?? and why the difficulty with finance?

My lawyers are checking it out but on paper company is stable with a lot of other properties run the same way all over Australia and they have been doing this for a number of years too.

Any thoughts on it??? and pls don’t just say it sounds too good to be true. Some facts to your thoughts would be good as it fits all of Steve’s “advice”.

PatLow
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Top of the afternoon to you Mini

Good work on the NZ deals!

I have been looking at NZ and haven’t found any cashflow positive properties as yet. I’d be very interested in getting the contact details of the agent you have been talking to as well as how you do the legals etc for your purchases from Aust.

My e-mail address is:

[email protected]

I’ll look forward to hearing from you.

Thanks in anticipation.

Nic

hi guys

not sure how to approach this with the rules, but here goes. thanks to our great networking skills in NZ, some agents actually totally ‘get’ what we are looking for and took us seriously when we said we know many Australian investors looking in NZ – and to contact us if they have any properties they think might suit us. one of them has now started emailing me some interesting deals. They are positive already on the asking price, and you could negotiate them even better.

if you are interested i’ll forward you the whole email and you can take it with the agent from there. (I have deals falling out my ears, and thought it might be cool to pass them on. No money involved – just trying to keep good karma with the agent so that they continue to send me deals – also, we did say that we network with a lot of other investors.)

“<sum> Purchase Price $53,000
<sum> Registered Valuation $65,000
<sum> Rent p/w $120
<sum> Yield 11.7%
<sum> Rates $1116.55
<sum> Two bedroom
<sum> Brick and clad exterior
<sum> Iron roof
<sum> Single garage
<sum> Close to town
<sum> Chattels: stove, TV aerial, fixed floor coverings, curtains and light fittings.
<sum> Separate lounge, dining and kitchen
<sum> Gas fittings and water heating
<sum> 712m_ section

Purchased at $53,000, the property is at 82% of registered valuation and is positive geared.
“

<sum> Purchase Price $26,000
<sum> Cerrent Registered Valuation $31,000
<sum> Renovation required $4,000
<sum> After renovation Reg Val $38,000
<sum> GV $58,000
<sum> Current rent p/w $80
<sum> Rent after renovation $100
<sum> Yield at current rental 16%
<sum> Yield after renovation 20%
<sum> Rates $1143.40
<sum> Two bedroom
<sum> Brick and clad exterior
<sum> Aluminium Joinery
<sum> Iron Roof
<sum> In Town
<sum> Chattels: stove, TV aerial, fixed floor coverings, curtains and light fittings.
<sum> Separate lounge, dining and kitchen
<sum> 334m_ section

Purchased at $26,000, the property is at 84% of current registered valuation and at 69% of after renovation valuation.”

cheers-
Mini

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