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Hi Guys
well as you know i’m more than comfortable to buy O/S first NZ and then last year started buying in the USA. This year i’ve added Central America to the List.
There are some huge things happening there. I’m not saying this area isn’t with out risk. It is rsiky but the rewards could be sensational.
love to hear from anyone else whose investing in central America. I know 3 other people who have also.
regards westan
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Hi Misty
i haven’t been to invercargill for ages, but there are some great things happening in the long term. The next few years maybe a bit bumpy but i like Invercargill a lot.
Currently there are some vacancy issues so you need to buy homes that are warm and well presented. Also be careful about buying something and assuming the current rent will be the furure rent. Rents have dropped so even though a home is getting 180 pw now doesbn’t mean thats tha current market rent.
These are some things in the pipeline for Invercargill (this research is now about 12 months old so you need to check the current status).
1. The new Freezer works south of the city is complete, this has created jobs for the city, whilst its opened its not running at fully capacity yet.
2. Tourism Industry is growing, Major tourist oporater Real Journeys, Stewart Island, boat to Fiordland 2 on order.
3. lignite power generator $2 billion dollar project, proposed north towards Edendale
4. silica smelter -rumour at the moment but a Silica mine is a possibility
5. oil exploration- one company is testing/looking for 16 billion worth of Oil
6. oil exploration off shore – according to a new book out in NZ there is a huge reserve of Oil south of NZ that was found by Hunt Petroleum in the 1970’s.
7. increased retail activity, new $5 m Spotlight store -40 jobs 2500 sq meters, Bunnings rumoured to be getting the old show grounds site, new Mitre 10 meg store,
8. refurbishment of Bluff
9. airport- direct flights airport extensions are near completionHope this is a help
regards westan
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Hi Flash
Arizona- as you are probably aware the southern states of the US are where all the population growth is happening, California, Arizona, Texas, Florida etc.
With Arizon i looked at Pheonix last Nov 2004, and whilst i loved the place i was a bit concerned about the high vacancy rates there. pheonix is one of the fasted growing cities in the US , a trend that will continue (Robert K doesn’t live there for no reason !). I found some great deals there. A few units for 24K, except it turned out they were Co Op which meant they had to be bought by a home owner, not me[cry].
Becuase of the high vacancy rates i decided to keep checking out other areas i’d atrgeted which on that trip was Texas. I loved the market in Texas so i never really followed up much in Phoenix. You need to find one or two markets and focus on them. By the time you sort out a team there it takes so long.
Anyway i still should have purchased in phoenix as the market just keeps rising , (not saying it will now).
As far as Phoenix goes its population will also continue to grow. I was in phoenix about 5 weeks ago and there was a story in the papers about a huge new area being set aside for residential development over the next decade.
As far as Oregan goes, i went through Portland in May and while i liked the City i didn’t really spend much time looking at the market, this time i was holidaying with the wife and kids. I am under the impression that prices are a bit high there.
I picked up a great book when i was in the states it rates every city in the US by Crime, education, standard of living, etc. Any city you want to know about i’ll see what score they gave it.
Regards westanProperties in the USA 15-25% returns- email to join our database [email protected]
Hi Guys
Richard you have done incredibly well with your Californian investemtns (i remember you’ve mentioned them before to me).
Even though i said Califoria is touted as an area about to bust, if i owned sea view property in Califoria i wouldn’t sell! I know you aren’t suggesting you will, i am just making a comment.as far as finance goes , Richard will have no problem getting finance in texas (even if you were a “foreign alien” as they call us.)
Texas has some great opportunities, but i don’t know much about Oklahoma, i’ve never been there.
Personally i’d focus on texas (from my limited knowledge of Oklahoma)regards westan
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Hi Nigel
You are obviously investing in these areas for a purpose.
Can i ask how are your investors going to make money on these deals ?
I have no doubt that Christchurch is a growing city, but growth alone doesn’t dictate appreciation of home prices.
The latest reseach out shows Christchurch’s housing market is flat and economists expect it to turn down.
I’d be interested to hear your thought about these investments.Regards westan
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Hi again
Just in response to what other have written.
Lets pose the question how do you make money safely in a downmarket ? As stated i avoid investing maybe others have some good ideas ?
On another matter
while i encourage reading and reasearch, Don’t overlook reading and research about the direction of the big picture
1. Where is the economy heading
2. Where are interest rates heading
3. Where is the property market heading.
These factors need to be seriously considered before you invest.
Sure money can be made in a down market but its far easier to take your time and don’t jump in. Use this time as learning.Better to have your money invested in markets that are moving upwards.
Thats why sometime you need to consider other investments apart from Real Estate during different times in the Cycle. Or even different real estate markets. Thats been my choice, to invest outside Australia when our market is flat. Today i’m investing in the US and in Central America, as my research tell me these areas i’m investing in will be rising markets. (hope i’ve got it right)
Its so much easier to make money in a rising market, you don’t even have to be that smart, as the market does the work for you. If you make mistakes it covers them also.regards westan
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Hi guys
Del i agree i’m sitting on the sidelines (unless i see a snorter of a deal in Both Oz and NZ)
Blogs you are right it is really simple. But its not that easy in a downward market as its possible to buy Low and the market drops more, Added to this is the fact that not many people are buying in a down market so you could get stuck with a property.
Keenaz
I think the same strategy that i started investing in 1996 is still current in the right markets.
1. Buy below market
2. Buy only cash positive
3. Buy in areas where you will get capital gains
4. Where possible add value to the home.The above strategy has really helped my financial position over the years, first in Aust, then NZ and now US. Over the years i’ve mixed these up a bit sometimes its not possible to get all 4 happening in the one deal.
But if you can work a market where all 4 are possible then you are on a winner.
There are markets where this can be achieved.
regards westan
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Hi parkdog
As far as markets to look for in the US. Well it comes down to what are you hoping to achieve.
If its purely cashflow then New York state has some fantastic potential.
If you chasing cash flow and capital growth then i like Texas.
If you are chasing Capital growth only then you will probably end up buying in California or another area tooted as having a priice bubble.
I’ve been researching the US for 18 months, have made 4 trips over in the past 12 months and spent a total of about 16 weeks there , so i’ve had the fortune to make some great contacts (and some not so great ones). I’m also getting a really good idea of whats happening in the markets we are buying in.
For instance in Texas, due to the great team i’ve been fortunate enough to meet we have access to new properties at a huge discount, and we can buy existing properties well below market.
This is one of the great things in the States, its possible to buy below market due to things such as foreclosures etc.
The “Key” thing about investing in the US is the quality of your team. Sometime it takes time to sort this out and usually after problems happen , then you find out if people are Good.
Whats your strategy in the USA ?
regards westan
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Hi Don
the worry is if people switch to fixed rates but down alter their spending habits NZ is headed for huge economic problems.
Not the least of which will be higher interest rates and the negative impact they have on the whole economy. Loss of profits foir exporters , loss of jobs etc ettc , it keeps going on.have a read of Bollards “media release” from a few days ago, he is very concerned about the NZ economy.
regards westan
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Hi Del
sorry i remember you told me that before.
Just out of interest is there any conection between us arriving back in Australia on the 13th and you leaving Victoria the day before ?[blink]actually i’d love to pop in and see you guys when i’m next in QLD
(sorry everyone else this topic has become a bit boring for the rest of you).
regards westan
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Hi Guys
The whole interest rate discussions seems to be a bit of a moot point if you are to believe the figures quoted on tonights tv2 news here in NZ.Don if those figures are true (no reason to doubt them) then there are still 20% of the market that are on the variable rate, better for them to fix it don’t you think ! that was my original intent of the post to make people aware that now is the time to fix if they haven’t already. I know i keep saying the same message “fix your rates in NZ” ( i msut sound like a record i’ve been telling people to do it for 18 months, but there are so many new people on the forum better they get the message.
regards westan
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Hi Wilandel
how’s your own personal seachange ?
Have you moved yet? We arrive home to Australia in Dec, hope we can see you before you head north.
regards westan
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Hi Guys
Thanks for your thought Brisbane 04.
Nigel your email has change tact and you are pushing research. Lets go with that.
I agree research is essential. I encourge everyone to do research. You will find that we are very honest about the areas in NY where we are investing in that they have had populastion loss over the past 30 years (now growing again), have been through incredible economic hardship (thats why its so cheap) and had little capital growth (but the latest figures out show 5% for the past 6 months). So don’t give readers the appearance that we don’t encourage research.
In fact many of our clients have been researching the US for 12 months and the tour was one final part of their research. they have decided to go and look at the place themselves. As i’ve said many times i knew about the opportunities in Buffalo back in mid 2004 but was put off by some of the data and chose Texas to invest first myself. It was only when i thought what if Buffalo is ok that i go back on a plane and headed over and then i was very impressed with that i found. In relation to Buffalo the more someone bag a place without knowing the place, it actually reflects on them more that the place they are talking about.
OK research on Texas, how can you imply that i don’t encourge research ? The 250 people that attended our USA investing meetings back in April in Melbourne, Sydney and Brisbane know that we do reaserch. i shared with them all why i was investing in one particular city in texas (i’m not going to mention here the cities name but i did back in April). And I also shared the negative info on Buffalo !
Remember that you are implying we don’t do/or encourge research yet its my initial research that you have picked up on and are now heading over to Texas all excited about it.
I spent months research the USA last year, mainly from the internet and phone calls, I spent 100’s of hours learning as much as i could before i even got on a plane to visit the cities i’d singled out.
However i also encourge others to do their research also.
One thing thats really helped improve the odds for me with investing is to do the research. Back in the early 2000 i was researching areas like Hamilton in Victoria (because of the Mineral Sands projects. In 2003 i was researching areas of NZ and invested in towns like Marton because of some new industries moving to the areas. These ivestments doubled in less than 2 years. If you want clarification lock up 29 harris st marton which the public records will show i bought in sept 2003 for 42 K and i sold in sept 05 for 106K, and i spent nothing on it. So yes the power is research is tremendous.One final comment when you put down our tours you actually put down those who attended ! We had high quality people on these tours with incredible investing experience. I enjoyed learning from them !
So you not only put down those on the tours but also the hundreds of others who wanted to go but weren’t able to given the short notice and the quick take up of places.Regards Westan
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Hi Brendon
those costs you mentioned can vary greatly from property to property. Each investment needs to be worked out by itself.
If anyone give you a figure for each of those expenses then it will lead to a faulty assessment of the investments performance.
Facture that effect the figures are
Management costs can run from 7% up to 10% depending on location
Rates- varies too much depending on value of property and location.
Insurnece will also vary as the location and insured value.
Budget repairs- depends on the size of the home, age of the home condition it is currently in.Sorry i can’t give more clarification. You need to find out each of those costs for each investment you look at. The more you do the more you will be able to make an educted guess on the figures.
regards westan
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Hi Nigel
thank you for the apology, But i’d still like to know where the attack came from ?
In regards to my views on NZ being different to yours. I have always posted the way i see things, certainly i’m talking in gerenalizations and good deals can be made in any market at any time. Those who have been on the forum a long time will know that back in 2003 i was telling people to buy in NZ (this was before i started Property Investing New Zealand Limited). Back in 2003 and was telling people i was selling in Aussie to buy in NZ. Its just my style to tell people what i’m doing with my investment dollars.
I think its my right to speak my opinion, if you disagree than balance my agreement with your thoughts (not personal attacks because you don’t like what i say).regards westan
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Nigel
why do you call it a cowboy tour ?
what do you know about it ?
would you like to hear what the people who were on the tour actually said about it ?
And more importantly what sorts of investment opportunities we are able to present in Texas ?I’m finding your personal attacks on my a little annoying.
Ask your associates Rikky and Cameron if i deserve the sort of treatment you are dishing out. They may be a little annoyed with your form on the forum also ? I actually caught up with Rikki in Texas 3 weeks ago and he seems like a great guy ! And Cameron has been doing a great job in helping our clients with finance.Remember the purpose of the forum is to seek help and to give assistance.
regards westan
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Nigel
Why are you being personally insulting to me ?
regards westan
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Hi Zaksta
personally, i think you need to focus on either investing or the trip !
Sorry if i’m a party pooper, i believe in Delayed Gratification. Maybe the trip has to wait.Reward yourself if your investment make you $50,000 then maybe you can spend 20K , you need to decide that.
For me retirement was a goal, and i achieved it in 6 years of investing, (but largely helped by the boooming Australian property market in the late 1990’s-2003). It was after i got to my target that i started to enjoy the fruit of my efforts.let us know what you decide to do.
regards westan
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Hi cyclist
I’m with swampy30 , You will only make money if the property appreciates in value. Once you add Stamp duty etc and then Agents selling costs it will take some growth to even break even.
Best to do all your sums, I’m not privey to all the details but on the face of it , this deal wouldn’t be something that i’d be chacing
regards westan
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Hi guys
i might be sensative, but i feel there are a few barbs at me !!
Firstly Nkibel, Buffalo isn’t the only place i’ve been buying in the USA. I suggest you ask the 3 colleges of yours where they first heard of the city you are going to in Texas. Guess what it was from me! Yes thats right just ask them. By the way i love Texas thats why we are sending our clients there. But i also like Buffalo, maybe you should have a look yourself before you take others opinions as facts.
Also don’t give me this “cowboy tour” rubbish. Are you really doing your own research ? or the advise of the other 3, (actually indirectly its my advise isn’t it). So all the best nkibel make the most of your trip, enjoy those fantastic Texas steaks!
Oh by the way don’t expect to sort out a “team” in Texas on your first trip. I’ve been investing in Texas since Last year and building a team there since then. I’ve spent a total of 15 weeks in the US in the past 12 months. Its a slow process. Personally i have to invest myself before i even think about sending clients there.Re NZ, i stand by what i said. Investing ain’t that complicated if there are lots of buyers prices goes up, if there ain’t guess what !
We are already seeing a drying up of buyers. So best to buy wisely.regards westan
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