Forum Replies Created
Hi Robot
i agree 100% its a great area. But towns like Hawera have had some great capital growth over 2004, maybe it will continue. Sadly we can’t buy for our clients there as the prices have risen so much that the returns have dropped.
regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Nowork
i think a great start strategy is to buy properties that you can do something to- to add value to the home. When i started investing i bought really cheap homes (30-40K) that i painted and recarpeted. Usually the cost of this was my time plus 4000 (mainly the carpet). But these homes were then worth ($50,000).
So obvoiusly the days of $40,000 homes are well past but the strategy hasn’t changed. Buy cheaper homes that you can add a lot more value to with minimal expense then you can refinace these home as the deposit for your next property.
Following the above patten while time consuming will build you wealth even in a flat market. I started with 25k (in 1997) and was able to buy 10 homes in 12 months. I soon got lazy and paid people to do the work but the concept didn’t change buy homes that a profit was in the deal.it worked for me, maybe it will work for others?
regards westanI live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Yuyu
many of our clients who have bought in NZ have used steve (mobile mortgage) and i have only heard positive things about him and the way he runs his business, it would be in your interests to give him a call. (no i’m not on his payroll and to be honest i’ve never meet him but we have spoken on the phone before).[biggrin]
As far a solicitor go you can pay anything up to $1200. Personally i use the Mortgage Transfer Center in Dunedin they charge only $564 for a purchase. While i’ve been very happy with them not everyone i’ve spoken to is equally as happy. But i’ll keep using them.
regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Dom
i own properties in St Kilda and Mornington.
i really like the StKilda, South Dunedin areas for the following reasons.
1, St kilda is a beach side suburb- yes a sandy beach.
2. both are next suburbs to the expensive popular suburb of St Clair.
3. Both Suburbs are on Flat land, so they get sun shine all year unlike other parts of the city that are built on the hills. Flat land is also popular with older people so a lot of new development (Units) is being carried out for this market.
4. close to city and not too far from University. The uni has 25000 students and while that story mentions prices dropping, i am sure thay are still more than they were last year. Rents go up every year for Dunedin Uni students. Maybe some were getting too gready.I must admitt that i’m selling some properties in NZ to finance my USA investing, but i will not be selling properties in Dunedin or Invercargill.
Regards WestanI live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
HI GGG
i wouldn’t discount NZ, the market has flattened out in many cities in NZ over the past 12 months especially the top price end like Auckland, Nelson and Queenstown. But underpriced areas still continue to catch up after years of no/little growth. southland and Otago while rising 30% last year could still grow in value.
Areas in NZ that may be worth considering are Hamilton, Gisborne, Dunedin and Invercargill. (but you wont get 10% easily in these cities)I support your quest for cash positive properties but don’t sell your whole portfolio.
regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Easymoney
sorry i will not share where i’m buying on the forum but would happily share off the forum. Back in 2003 when i started buying in NZ i used to tell people where to buy but then found i’d created too much competition for myself and the prices went up and i could get as many deals as i wanted to at the old price. Hope you understand.
On my first trip i found lots of great contacts, i was able to attend an investors meeting in the City i was in. Before i went I also make contact with the president of another investors club and she refered me to a agent who was honest and knew the market. He refered me to a guy who i’m now doing Joint Venture stuff in this city. The one thing i didn’t sort out was finance, everyone failed to deliver what i wanted.
On my second trip i meet some fantastic guys who i’m using to assist sourcing properties. These guys are Honest, know the market and do exactly what i’d want in a team. I now have good contacts for property management, finance , insurance, legal but i use a top quality australian accountant for the tax stuff.As far a Multi Family property, yes i’m buying Duplex’s in one city and Single Family homes in the other.
regards westanI live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
hi saffer
the only restrictions are if you are buying large areas of land , so unless you have $10 million or more to invest there is no problems.
The NZ investing experience is very easy.
regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Jenny
what a great story, i don’t know anyone who is so young who has made so much money. I do know 2 guys who are about that age who would love to be investing but sadly they don’t have the deposit or resources to do it yet.
regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Guys
The US market is fantastic , it reminds me of the deals i was doing 8 years ago in Oz (only better) so go for it. But the thing with the States is as you say Tokyo it is a huge place 50 cities over 1 million people. I researched for about 4 months before i made my first trip to the States, but when i got there i loved what i found. I’m now buying in 2 different cities at opposite ends of the country.
Just be careful though there are many pitfalls in America and you need to be careful of whose advice you take. The quality of the team you develop over there is essential.
i’m happy to take calls if i can help 0011 64 3 4180083 but make it before the week starting Monday 21st as i’m away with my son’s school camp for a week.regards westan
I live in New Zealand, for a fee find cash positive deals there, and now 15-25% Returns in the USA email me at [email protected] to join our database
Hi Darren
i do joint ventures with partners in the States (i live in NZ)if you want to see a sample of our JV agreement email me at the address below. Like you i put up the cash and they do the work.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Martin
what sort of returns can you get in China ? Even though i’m a cash flow buyer I would always like to make some capital growth but if the returns are good then i’d settle for pure cash flow. I’ve recently been buying for a 25% returns in the States (but i hope to get some capital gains also).
As far a China goes one added possibility to make China attractive would be the revaluation of the Yuan. The US government has been putting pressure on China to raise the value of the Chinese Currency, as a cheap Yuan hurts the US economy. If the value was raised then you would make money as you would have exposure to the Chinese Currency.
Personally i’d never invest there- because –
1 i can’t speak Chinese,
2 The differences in Laws
3 level of Corruption there.i’d been keen to hear about the deals you are looking at, all the best
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Dom
yes 5 days is normal. but then again so are “cash offers” (no finance clause) and so are 10 day finance clause, it depends how hot the market is where the offer is being made.
If it comes to a situation where two people are offering on the same property someone who is able to offer the least terms will often win.
Thats why its good to get financial pre approval.
regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Dom
what these mean are that you as a buyer have this amount of time to approve those issues.
5 working days finance- this means that you have 5 days to let the seller know you have been granted approval for finance.
10 working days LIM & Title- like the above , so 10 days to view the LIM and give approval.
10 working days Building Report- you must have a builder inspect the home within 10 days and then you will notify the seller that you are happy to proceed with the deal.Once you have approved all the conditions you must go unconditional, that means you can’t back out of the contract.
On the conditions you mentioned you have 8 weeks from the signing of the papers to have the transaction complete.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Look at http://www.propertytalk.co.nz
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
hI techhowse
i agree with nobleone that New Zealand is a great place to start looking to buy your first IP. I think its really hard to find good deals in OZ. In NZ you can still pick up great deals for under 100k, a great starting price for investing.
Commercial deals are worth considering but better to start with Residential and learn for that.
As far as a financial planner , i wouldn’t waist my time, these guys don’t even do units in their studies on Direct Residential investing. They make their money by selling managed funds and will recommend that you invest in the Stockmarket and most likely property trusts if you want exposure to the real estate market. Having said that, not all Financial planners are the same and there are some excellent ones out there , but check what they think of direct residential investing before you make an appointment. I think yo are far better to read as much as you can about residential investing. Especially read this and other forums.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Martin
while i agree that Quiggles story is well worth reading, i disagree that the topic is done to death (byronet). One or two threads isn’t done to death.
The USA market is huge the population is 15 times that of Australia. There are over 50 cities with more than a million people so we are talking a huge market, and 12 cities with more than 4 million people (the size of Melbourne and Sydney) There are so many differences even better States in the United States.
Martin what sort of info would you like to know ? I’m happy to share what i know but don’t want to do a massive effort like Quiggles.
Have a read of quiggles story and if you have other questions please ask.
The biggest issue in the states i believe is finding the right people to work with over there. I’ve made 2 trips in the past 3 months meeting up with potential people and sadly many of them are ones i will not be working with. Like the real estate agent in Texas who said this city is so dangerous you have to carry a gun – he then who pulled the gun out of his pocket. Sadly a lot of people have deep prejudice (not unlike us Australians) and the way they behave reflect this. By the way this city was not bad at all and i meet heaps of people there who wouldn’t dream of carrying a gun and had never felt threatened.
Having said that about people i wouldn’t work with , i’ve also meet some outstanding people who i am doing business with.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Dan
yes i am sourcing properties for investors looking at 20-25% returns and believe i’ve an excellent teams on the ground in a few cities in the states. I haven’t promoted this outside of our current client base but i’m happy to take on any interested people. Our clients have bought 5 homes in the last week and the demand looks strong this week also. I’m excited about the USA for investing and i’m not suprised that those who look into it it feel the same way.
Dan sorry 80% is the best that i can find in the states for foreigners (that’s us).
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Collie
i don’t think you are workingout the Capital Gains Tax the right way. My understand is (i’m not an accountant) what you do is add it to your taxable income and pay tax on it as if it was ordinary earnt income.
so my above figure would be correct, i believe.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi All
nobleone
those are the same reasons i’ve made for not investing in Tok, but if the price is good then thats usually the difference between a good investment and a bad one. on a possitive note for Tok. it’s interesting that the ANZ would only lend 70% in Tok. however recently they have lifted it to the 80% rates they give for the rest of NZ.
Del i wasn’t meaning for this to be a Tok criticism post, i just knew that like all cities there are places where the uninformed can make mistakes. I just wanted those with a better knowledge than me to share their thoughts. And yes i know you’ve done very well with not only Tok but all of your OZ/NZ investing[cap].
Muppet- “Hot as hell”, we get that sort of statement in Balclutha when it gets “hot”, as an Aussie i don’t find 25 degrees all that hot. Just looked up the weather for Tok it is HOT its 27 today. All the best with your new enterprises.regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Collie
on the Profit of the property from you figures you gave before CGT i calculated a profit of 40,400. This is the amount CGT will be payable on.
As you will have held the home for only 6 months you will need to pay the CGT on the full amount so if you pay tax at 30% then thats a CGT of 12,120. Ouch it eats into the profits, Its even worse this Capital gains could push you into the 47% rate then you pay $18,900 TAX- Double Ouch.One thing to think about is can you rent the home for 6 months, especially at the beginning before you renovate , that way you get the 50% CGT free and then start the reno so when you sell it 12 months later its in new condition
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
