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Hi del
yes fair comment about the commercial deals, i’d suggest that commercial in NZ could also be a great way to go, but you need to be a lot more switched on about things, making it very difficult for Aussie buyers.
Commercial deal could be the way to go especially when outgoings are paid by the tennant. My brother was looking at one in Gore showing a 12% return, he was all keen then the seller took it off the market.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Guys
Jenny, just be careful when you mention that Tok is cash positive. As you are well aware there are many people buying in Tok at 10% returns, these are the ones i’m telling “be careful”. In the words of one Tok real estate agent “lots of Australians are going to get burnt in tok”. I’m an Aussie living in NZ, i’m just warning my country men.
Let me get things straight i’m not slaming tokoroa, i’ve got good friends that live there its just that its not the best place to buy an investment property in NZ. It may well be a wonderful place to Live.
Now this is why a 10.4% returning property isn’t cash positive.Lets look at a property for $65K that rents for $130pw. Say you put 20% down and finance the rest at 9% (the variable rate).
Lets assume the home is let for 50 weeks at $130pw
Total income $6500.But lets now look at the costs
Rates $1,100
Property management 7% plus gst $ 520
Insurance $ 330
Repairs $ 300
Total before interest $ 2,250Interest on loan 80% loan on
65K property is $52,000
at 9% interest $4,680
TOTAL Cost $6,930
Therefore we have a loss of $430 per year
Not my sort of cash positive !!
Even if you went for the fixed rates of 8.1% its still not cash positive.So clearly you don’t by a property showing a 10.4% returns for cash flow. Given there is no cashflow to make money you have to buy for Capital growth.
Now Jenny to answer your question where do you buy in NZ, well clearly you need at least a 12% return for it to be cash flow +. If you can by them in tok then thats good , go for it.
Better markets in NZ right now are
Christchurch, Hamilton, Gisborne, Dunedin and Invercargill. Yes Mini i said Invercargill. I know you don’t vibe it but the growth hasn’t even started yet. Just out of interest have you been there in the last few years ?
There are plans for Billions of Dollars to be spent in the Southland region, What effect will that have on a city of 50,000 ? I’m not even sourcing properties there, I’m busy with the USA. I’m just trying to give you guys the head start. But hey i might even start sourcing properties there ???Happy investing
regards westanWe find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi rich mum
before you come to NZ have it clearly worked out the areas you want to visit, and maybe even some appointments with agents. Do a lot of research about where you can find the deals and then start planning. Allow a lot of time to travel, as driving in NZ is a lot more tiring than in OZ. Hireing a car is the only way to go.
and enjoy the besautiful scenery, i’d say call in and have a cuppa but i’m off with the family to the State for 8 weeks for a well earned holiday.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi all
Andrew don’t compare Tokoroa to Invercargill, there is no comparison. There are some huge things happening for Invercargill that over the next decade will give the city even more growth.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi borg
try Mic from Hunter house hunters
http://www.hunterhousehunters.com.au
they are nation wide.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi all
a question for Jenny Lamberton in Tokoroa
would you buy in Tok at these prices?
All the smart money that was buying in Tok in 2003 has been selling. At the prices being achieved there are better markets in NZ.
Regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Ok Mini
good to hear you are finding the deals. Sorry i worded it badly and should have said you are having trouble finding enough deals to meet demand
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hey the tigers WIN again
this time beating the Bulldogs
GO TIG’s
We sit in 6th position,
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Collo
if you want aust property try Australian House Hunters
http://www.hunterhousehunters.com.au
I know Mic and Deb and know many of their happy clients. Although i must admitt i’ve never used them. But then again i haven’t bought an IP in oz since 2003.if after NZ try Minimogul, although she is having trouble finding deals
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi all
Jeff i think you’ve summed the whole thing up very well.
the Auckland market is not for the inexperienced (inexperienced about Auckland).
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
i agree with dels comments
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi mini
sure prices have already risen but look at what gisborne has going for it
1, best climate in NZ
2 nice sand beach (yes they do have them occasionally in nz)
3. going througha dramiatic improvement, new cafes etc
4. big money spent on new property development
5 biggest city for 100’s of KM’s
6 trial of banana plantations (nz only climate good enough to grow them they hope)
7 growing wine industry
8 growing tourismso Gisborne could still have some way to go (unless prices have gone crazy since the last time i was there.
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi daaussie
just to help put in it perspective, the properties in Oz that i sold would have risen by about 0-5% in value since i’ve sold (plus sales have really slowed so i might not even be able to get rid of them now). Where as the NZ properties have probably risen on average about 60% since i purchased them, plus the rental returns on the properties i buy are always making more money that the ones i sell. When i purchased the properties i was like you expecting to hold them long term, its just that things change (such as capital growth) and then sometimes its worthwhile being flexible to consider other options. Now days i don’t mind selling assets as long as i’m reinvesting them into something that will show a better return.
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Ozi
there are about 4 staff in the rental department and each person has a specific role.
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Del
actually hawthorn can go down, its the tigers who can’t go down any more.
Lets hope both our teams can do something to encourage the supporters. Well done on the membership.
westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi FireCaesar
Lets look at issue number 2 CashFlow.
As far as investing for cash flow NZ walks all over Oz, even after the huge price growth the country has had. I often mention that i’m selling in NZ but i would still consider buying if the right deal came along. I wouldn’t even consider buying an investment property in Oz at the moment.
regards westanUSA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Guys
hey mini you keep mentioning Steve and Tok, i could be almost certain that steve wouldn’t be buying properties in Tok at these prices !
Sure anywhere can be a good investment – At the right Price and i think the smart money has been selling out of Tok (eg Steve McKnight, Del etc).
As far as the lifestyle, yes Tok would be an nice town to settle down in, lovely rolling hills around.
Mini just for the record i think Tok’s vacancy rates are way higher than Invercargills (remember Invercargill is 4-5 time the size of Tok).
So Muppet and Mini would you buy a home in Tok at the prices they are selling at today ????? I’d be suprised if you said yes. Once again nothing against Tok its just the returns are no longer there to justify the a purchase, theres better value for money elsewhere.regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Thats exactly right Michael.
at the end of the day what dictates the price we pay for property or shares or whatever is supply and demand. There’s no “rocket science” in that.
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Kerwyn
what do you consider agood deal in Tok, what price and rent return?
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Nobleone
yes, i’ve actually got rid of the property Bought it for 65 sold for 110 k eight months later so i can’t complain , but her poor management was a facture i my decision to get rid of it.
She does a terrible job of screening tennats – Harcourts are the best Property Managers in town .
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
