Forum Replies Created
Thanks Steve
thast package look very attractive.
Do they do any fixed interest loans ?
Sorry for asking so many questions but i expect others would be interested in the answer also.
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 Steve
what are the rates on a variable loan with some of these lesser know finance providers ? You are right about ANZ their variable rate is more than their fixed rate ??? Don’t see that very often in OZ.
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
woodsman
i just looked up google and found this survey
http://www.adelaidecitycouncil.com/council/publications/Reports/2002_Residential_Segmentation_Study.pdf
in it it says that in Adelaide 73% of investors own 1 property , the average is 1.7 properties and 3% of all investors own more than 5 properties thats 1 in 33 not one in 200. Perhaps Steve would like to comment on his source.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 woodsman
i’ve read official figures confirming this – however since steve’s book i bet there are a lot more people in the over 5 properties catagory. Today i know heaps of people who own more than 5 properties. In 1997 i bought 10 homes and it was really rear to hear of people who owned that number.
i think the official figure were quoted in Understanding Investment Property by Nick Renton, its 4 years since i read it so i might be wrong.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 Kurra
which island are you going too ?
email me directly and i’ll put you in touch with some legal people depending what cities you will be in.
Try to have a good knowledge of where you are hoping to buy before you get to NZ , its actually a lot bigger than you think and you risk running all over the place so have a plan to check out some specific markets. ( which is why you’ve written your post).regrads 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 Spanky
you raise some good points and i see where your coming from, i’d like to add to your comments then answer your question.
firstly the media is always against property, very rarely are the journalists investors so they have no idea.
secondly when they ask for “expert” opinions they usually consult someone from one of the financial services industries, and most often someone who is selling managed funds. These people always have a vested interest in promotion of the stock market over residential property.
Thirdly unless it changed in the past 12 months financial planners don’t even do a unit in their studies about direct residential investing- even though the residential housing market is worth a lot more than the value of the australian stock market- Its just happens that they can’t workout an easy way they can make money from encouraging direct residentail investing.Finally should we just enter the market knowing that in the long term the market will rise?
What tends to happen in the australian market is we have a cycle where the market rises quickly say doubles in 3 years then goes flat for 4 years and then the cycle repeates. As the market has risen recently if history repeats itself the next big jump is still a few year away. Personally i want to increase my wealth this year and then again next year. I wouldn’t like to have money tied up in a negative geared property waiting for the next cycle.
So while i agree that if you buy now in the future you will make money, however if your keen to increase you wealth this year there masybe better markets to be buying in. I’m still buying in NZ and recently started investing in the USA which has some fantastic possibilities.
One other final comment i agree that if you buy well you can still make money even in a flat market- you just need to be very knowledgable about the market and have a very good idea what “is” a bargain. As Robert Kiyosaki says “the profit is made when you Buy not when you sell.”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 everyone and thanks for your contibutions.
It looks like 2005 will continue to be a year of heavy buying in NZ. Good luck to everyone (not that i believe in luck, that was a bad choice of words.)
Yack you said
“As the yields are no longer good and there has already been alot of capital gain, now may be the time to move back to Aussie”.
I was in Oz for a 4 weeks in Dec and it just reminded my why so many of my country men (and women) are keen to buy in NZ. The returns in Victoria are terrible , so NO Yack its not yet time for me to buy investment props in Oz again, in fact i can’t see me ever buying for cash flow again in Oz ??? As far as not buying outside of your suburb, come on Yack there a big wide world out there that will make you richer ![biggrin]
You’ve done well on your investing so if thats whats working for you then well done.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 Quggles
those are good rates (6.5%), do you know if the person who offered this to you has actually financed foreign loans ?
From my personal experience and those of people i’ve spoken to- in American everyone says “Yes” i can get you a mortgage , and then they run around to see if they really can , in nearly all situations they have failed to deliver. If yours can do 6.5% you have done well.
I must admitt that i’ve become sceptical of what a lot of Americans tell me thats why its so important to find a good team in the states.
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 Trish
This is why i say they are harder to find. I’m not being doom and gloom just saying like it is. And this is like it “really is” not just the way i see it.
Firstly remember that not all deals showing 10% returns are worth buying.
Trish i’ve been buying for myself in NZ since june 2003 and have personally purchased over 25 homes. In June 2003 you could drive into most cities and pickup 15% returning homes at will. Today you can’t. I’ve purchased on behalf of our clients over 100 homes in the past 12 months and they certainly are harder to find than 12 months ago. I’m talking about good properties, yes there are 10%+ returns all over the place but this alone is not enough of a reason why anyone should buy them.
I know your trying to encourage Pen but the deals are disappearing who knows by the end of the year maybe earlier NZ will have gone the way of Victoria.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 Pen
The market has certainly changed since you purchased 6 years ago (well done a great deal you got).
Today if people are buying to put money in there pocket (cash positive properties) then they have a few option
1.don’t buy, because cash positive doesn’t exist in Vic in 2005.
2.work incredible hard to find the rare cash positive deal
or
3. go off shore – I’ve been telling people to buy in NZ people since 2003 today i see the opportunities in NZ disappearing as they did in Oz in early 2003. Now i’m buying in other markets showing a 16-25% return (not OZ or NZ). Personally i think it will be a long time before the market conditions are right for me to follow the cash positive strategy in Victoria.Dazzling- i’d be interested in the figures on your deals as i know cash positive deals are rear. I’m inclined to agree with the “head honcho” that they are a fantasy (certainly in Vic where Pen is). However what a joke saying the good old fashioned – geared. So much for wealth creation, you buy one property and then you’ve stuffed your servicability ! It takes you years to save the deposit to buy a second one that takes money out of you pocket every week! Negative Geared will create wealth only if the price goes Up.
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
Hi Quiggles, actually i think there is real difficulty getting finance, i’ve spoken to lots of people and the story is always the same- people make promises that they can supply finance but then they can’t deliver. I’m sorry if i misunderstood your situation i thought you were in that catalogy, i’m getting confused as i’ve spoken to so many people about it over the past few months. I was really pleased that i found someone who could actually close on a mortgage for a foreigner as on my first trip to the States i couldn’t find one. It’s possible you have a better lead than me as i can get finance but only in my name.
As far as cost of finance goes it is very expensive as you have already outlined.
For those interested in how finance works in the States- When i started looking at investing in the States about mid last year i was hoping that i’d be able to cash in on the super low interest rates on offer in the states. Its possible to get loans at 5% fixed for 15 or 30 years (now that sounded good to me). However what i discoved in the US is everyone pays a different interest rate. It all comes down to an individuals credit score. Someone with a higher credit score would get money at a lower interest rate. Someone who had a less that perfect score would pay more for their money.
Now as an Aussie Citizen how do i fit in , well in the states everyones credit score is linked to there Social security number, the only way to get one is to be a US resident. As a foreigner even though i have an excellent credit history in Australia and New Zealand it is worth nothing in the US of A. So if i want finance i end up paying interest at a very high rate of 8%.Quiggles how did you go with finance did you find someone who will do better than 8% ?
If anyone who has actually closed on a mortgage with better than that i’d love to here.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
guys just check that if you want to use an LLC in the states you will find it (nearly) impossible to get finance as a foreigner. Quiggles that may be why you can’t get finance ? I’ve had no problems sorting the finance delemna. This doers create less assett protection so you need to make sure that you/home has adaquate insurance.
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
Kerwyn
i understand your point of view. But you should be able to arrange a building inspection in the 3 days. As far a finance goes make sure you are pre approved. The important thing is don’t buy the property till you have done all your ckecks, you are correct that the proper DD must be undertaken.
you need to find the right balance in time from when you write the contract till it goes unconditional. Enough time to do the DD which will also be enough time to avoid the Cash clause.
Torachan, why don’t you raise your question as a seperate post. I’ll glady respond to it.
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
This story in the NZ media may interest you on the leasehold topic
LEASEHOLDERS ROCKED BY RENT HIKE
News Release Date: 2 February 2005 NZ Time.
Source: Taranaki Daily News
North Taranaki leaseholders face massive rental increasesas rocketing land values force leases up. The news has some people living on leasehold land panicking that they will not be able to afford the increase and will be forced out of their homes. Worst affected are 121 Urenui Domain bach owners, who have New Plymouth District Council (NPDC) property leases that are up for renewal by April 1. Urenui bach owners pay an average $517 a year, but that is set to rise to as much as $7155. Urenui Bach Holders Association chairwoman Julie Mace said she knew there would be an increase, but could not believe by how much. “If they go up to that price, we will want to have some vast improvements, like the roads done – it’s unsealed between the baches,” she said.
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi
i have just receieved an email from an agent i work closely with, she has no properties under 150k left, all have been sold!
she also said she has buyers prepared to buy at 8%.
to be honest i’d consider selling some of mine at the price! Certainly wouldn’t be buying. But thats me.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 Sparticus
i’ve used the Dunedin office for about 8 of my own properties and even more of our clients. I’ve personally found them to be of excellent service and the price is as good as you can do in NZ. Others i’ve spoken to haven’t found their service as good as i have.
as far as communication yes the agent should send them paperwork to them and you either call them or email them.
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 Kiwi-pi
yes the last census shows the population had declined (as had invercargill). The census was taken in the year 2000 i think and since then there has been a turn around. I’ve only lived in New Zeland since dec 2003 so i have to rely on what the locals tell me and that is that there is certainly more people about. Rental demand is alway strong in Gore, check with First National and Harcourts they are the main property managers in Gore.
As far as the develpments- email me and i’ll tell you (i’ll send some cut outs from newspapers). I don’t want to mention it on the forum as too many people read this site. I’m still trying to buy some there for our loyal clients and the last thing i need is creating more competition to buy homes – hope you understand my point.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 kiwi pi
i live 70km from Gore and its a great little city. I’ve got properties there and we buy as many as we can for our clients there also. Employment is very strong (as it is for all southland) there are some great future prospects for the city also.
It has a vibrant shopping distict also.
the problem is the town has had great price growth since i started buying there in 2003, deals over 10% are still possible.regards westan
regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Jarred
what ANZ have told you is the way i’ve found all finance providers in NZ operate. If PG has found someone who will give 90% i expect his mortage business will boom.
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 del
yes good point, i’ve also bought cross lease before and would do it again.
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
