Forum Replies Created
- Originally posted by nowork:
I would like to know if anybody has any really different property investing strategies? I have posted a new topic in the “help needed” site called “help me retire”, but as yet I haven’t been totally convinced by some of the replies. I want something that isn’t necesarrily the be all end all, but something that I can start and hopefully earn equity or the like to buy further properties. Also has anybody got any ideas of Beachside properties. My grandfather has a cool holiday shack in South Australia and has to sell it due to losing the stupid pension. I want to know whether it would be a worthwhile investment[baaa]
work hard. save pay. invest but spend time before parting with hard earned money.
Alternatively you can spend all your time chasing the “next big thing”.
[laughing][laughing][laughing][laughing][laughing]
Thanks for that. I’d like to add that tax is a consideration here. CGT may apply. Then again, what Costello don’t know, don’t hurt
Thanks Lib’s for making us the highest taxed nation after Iceland.
Seeing a tax advisor gets my vote. Nothing beats qualified advice. Good luck
Originally posted by kempsta:Iam new to this. Can anyone suggest what to look for in a cash flow + prop. How to work out rental yeilds? what sort of rent would you expect to be getting on a prop say $200 for it to be cash flow + ? can any body give me some simple formulas to use etc
THX
Kempsta
Try buying after the crash has finished, not when it is starting. Plenty of CF+ property on the way. Use this time to learn the in’s and out’s and when the disaster happens learn from other’s mistakes.
Property is not a one way bet.[hmm]
Originally posted by foundation:Hi Lady24,
A few things –
1)if
‘The house is in need of major repairs and is structurally not worth the huge costs involved in fixing it doing this – quoted at about $100,000.’
then I doubt that with moving costs, connections, purchase of new land, permits etc,
‘move the old house to a vacant block in a country area where a few upgrades such as bathroom and kitchen paint etc will enable it to be rented – total cost being about $70,000’
is a reasonable scenario!2) $150k (business) + $480k (home) – $195k (mortgage) leaves you with $435k minus selling costs. You appear to have factored $600k into your options – probably best to go with the lower figure.
3) You are not going to see 2 ‘property cycles’ in the next 18 years if by that you mean two periods similar to the last ten years.
If you have your heart set on property investments as the only way of reaching your financial goals, I would suggest buying one for starters and gradually adding to your portfolio over the years. This will ‘dollar cost average’ your investments, and avoid the dangers of maximising your debt levels at the peak of a booming market.
Cheers, F.[cowboy2]Again… Fantastic post Foundation
Perhaps the two “property cycles” refers to the crash and then stagnate prices? Can’t see another market like this one for a while. The current one was baby boomer driven.
Good luck for the future.
Originally posted by Nobleone:Gee Torachan,
Would you like to possibly add anything negative to your post? [blink]
So nice to see such optimism… Have you by any chance been burned by overseas investing?
Cheers, Nobleone. [biggrin]
“Making mistakes is just another another tool for learning.”
Don’t get me wrong. I am very optimistic. Things are going extremely well for me. I am very bearish on housing for the medium term. Long term it will be a great investment again but not until after the crash. Many bargains on the immediate horizon [evo]
Would you like me to candy coat the risks of borrowing large sums of money, buy an asset in a foreign country, which may or may not be what Lister thought it was?
Buying property is a large investment. Some advise that for every hour you spend earning investment dollars you should spend researching the investment. Looking up a kiwi web site and checking out some digital photo’s is just asking for trouble. For instance there are serious structural problems in houses built xxxx – xxxx (I won’t say exactly when because I know for a fact that some on this forum have CF+ houses that are a timebomb…. you can’t tell them)
So Lister if you want to “invest” large sums of money that you have to repay if things go wrong then be my guest. As I said if it goes pear shaped you’ll lose lots of money and I’ll get a cheap house. Thanks in Advance (BTW if you are buying for me 3-4 bedrooms and a nice yard at 30-50% below today’s figures)[party]
You’ve missed a couple of payments?
Repayments a bit hard now…. with more % rates on the way?
Sounds ominous. Heed the warning signals or your place will be someone else’s bargain.
Air goes in and out. Blood goes round and round. Any variation is a bad thing
If this rate rise (.25% … whoopee) doesn’t slow things down then there will be another. If that doesn’t work they’ll just keep on tacking on the interest…. either that or the Liberals/ Nationals will actually start to manage the economy for a change instead of riding a bubble.
Bring it on I say. The higher the rates the better.
Originally posted by lister_79:I would like to know the advantages & disadvantages that arise when investing in a property OS,
Besides the obvious I was wondering if any one has done this and has had problems regarding any hidden pit falls. Or nay hidden costs and charges and how hard it was to find an estate agent that is trustworthy and can manage the property,And when purchasing this property it was only seen over the internet and not in person, but had someone look at it. To advise of what it looks like
Also I was wondering how hard it was to keep up the maintenance on the property
And for the purpose of this question I, would say that the house is in NZ,
lister
Different Laws – similar but different. Can be changed at anytime both here and OS. If the OS country siezes your property who are you going to complain to? Certainly not your local member.
Different currency – Notice how our dollars value fluctuates on the news everyday? Well it changes more often than that. You’d better hope for favourable conditions or at least that the status quo remains
Different customs and culture – Are you aware of the ethnic problems? The ways of dealing with said problems. Speaking of NZ what if your tenant decides that he/she will take out the All Blacks loss on his stupid Aussies property?
Different Language – Kiwi’s use different terms – get this little detail wrong and you may have to prepare to feel serious financial pain. New Zealand has two official languages.
Distance – nobody will look after your property like you will. A PM may look after it but at the end of the day emails and phone calls will not replace your physical presence. If the proverbial brown stuff hits the fan you are a long expensive way away. Heaven forbid that you need to be there any length of time or need to go back several times.
Are you aware what happens to interstate and foreign buyers at the Gold Coast QLD? Well you may find out that it happens elsewhere as well.
These are the pitfalls in investing in property OS in my opinion. As for the pitfalls in investing in property in any western nation at the moment…. well you could consider “due dilligance” with the phrase House Price Crash, or Interest rate hike or Negative Equity
http://www.housepricecrash.co.uk/forum/ind…?showtopic=6640
http://www.housepricecrash.co.uk/forum%5Bbaaa%5D
Air goes in and out. Blood goes round and round. Any variation is a bad thing
And when looking at the unemployment figures dig a little deeper. Work 3 hours at award (ie slave) rate? You’re employed now. Nice one.
Your tenant is probably living pretty close to the poverty line as it is.
When Argentinia’s economy collapsed tenants stopped paying rent. Those who were kicked out stole the fittings. [buz2]
Basically if rents increase then there will be demand for increase in wages which will lead to somewhere those of us who are heavily geared don’t want to go….. I reckon somewhere around the 10% mark. Bring on the next .25%[specool]
Bring it on. My money is in the bank ready to snap up over extended “investor” property for a song.
If rent becomes a problem I’ll move out. Problem solved.
Originally posted by ceec:I’m new to this game and would appreciate some advice. NZ looks extremely attractive as a country where you can purchase low cost +ive geared properties.
What is the current state of the property market in NZ. Is it booming, static or depressed. I suppose it possibly depends on the region, town etc.?
What does GV mean. Is this simmilar to a local council rates assesent in Australia. Eg land value for rates purposes.?
Has anybody dealt with individuals offering bird dogging facilities and if so what was your experience.?
I like the idea of starting an investment portfolio with a cheaper property with little or no loan. Seems like less risk to me. However normally cheaper means nastier and riskier?
Any thoughts would be much appreciated. Would like to hear from you if you have invested in NZ and your experiences.
CEEC
ceec
I’d keep in mind that NZ is a foreign country. Similar but different laws, different currency which fluctuates, racial issues. At anytime the NZ govt may change the laws regarding foreign ownership of property and you can complain all you like but believe it or not there are a few Kiwi’s who’d love to stick it to an Aussie.
http://www.riverbendnelligen.com/images/investment-clock.gif
Sorry don’t know how to paste picture here.
Originally posted by Damian and Tam:I am beginning to think that the recent boom over the last few years has meant that unless rents rise that we will not find any cash flow positive investments here. Am I alone in my thoughts or is it that I am not looking hard enough or in the right locations ? Any help please.
I think bubble is the correct term. Plenty of CF+ to hit the market in the near future. .25% has mugs, err “investors” needing their Brown Trousers. A bit of patience will see large rewards.
Air goes in and out. Blood goes round and round. Any variation is a bad thing
Originally posted by LizaJane:Hi
I have found a few positive geared houses on the net, but know very little about the towns that they are in. Does anyone have any good websites or infomation pages where I can find out about the towns population and infrastructure etc?
Thanks………Liza
Fortune favours the brave. Go for it. [cap]
Why would my blood ties alter your opinion? Real deal means that he is fair dinkum in his efforts as a consumer advocate.
If your opinion is based on experience with NIEL JENMAN not his agents then I’d consider what you’d have to say. Crucifying the man for the actions of others isn’t very cool. I admire your courage Byronent. That is your full name isn’t it?
ha ha ha. I take it you are from Brisbane? I know for a fact that there are some Maori who are VERY keen to have a chat. The words that caught my interest were Respect, teach and a phrase about female parent and copulation. I think they were interested in you.
They want me to convey a message “Te reo maori e mate, te tangata maori e tino kino”. How’s that for kiwi?
Again I challange you to have the courage of your conviction. Or are you going to hide behind your avatar?
Before you waste anyones time … I’m not the one making racist jokes.
Originally posted by soum:i saw this house today which was going for 400K …the land price on it was 320K….the house is more than 40 yrs old….would it be a good idea to buy the place and renovate ? Would it increase the price of the house.
A friend told me the expected life of a house is around 50 yrs so if i buy a house which is more than 40yrs old and renovate it then it wouldn’t increase the value as such of the house ..is that true ?Is it the best way to demolish the house and build a new one ? Unfortunately i do not have enough money to do a new one…
so would it be a bad decision to buy the old house and renovate ?
Just after being warned by the Reserve Bank that interest rates were going to be increase twice?
At the peak of the largest asset bubble the world has ever seen?
Before you fork out $350’000 do some real research. Think long and hard. That is a real lot of money you will have to pay back. Don’t think that Negative equity is just a bad word. It’ll F#$K up your financial life for quite a bit. This bubble doesn’t need another sob story for Today Tonight.
Having actually talked to the man I say he is the real deal.
Your call on wether you take him on what you have heard, think you have heard, or wanted to hear him say. Just remember that you may be judged on your standards. Hope you measure up
