Forum Replies Created
Hi Monopoly
just to answer your question about returns in NZ, yes you are right , it is a lot harder to find properties that are showing a return ver 10%. But they are still there. Saddly its not 2003 anymore when you could drive into most cities and pick up deals showing 13%+ returns.
Personally i’ve found a new market not in Oz or NZ where i’m buying for a 25% yeild.
PS i can’t spell Drouin properly either.[blush2]
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 Matt P
i too have been away for ages, it seems like there are heaps of new people about !
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 Barbie
No there are no cash positive properties in Melbourne.
In Regional Victoria there is vertually none and you will find some showing 10% retruns if you buy in very remote little communities (not advised).
Droin is a great little town i spent the first 3 years of my life there but it hasn’t been cash positive for 10 years (guess). It certainly wasn’t when i was buying 5 years ago.
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 samveda
welcome to the forum.
???? that question has confused me because you must know how to do it to write the question ???
to reply to questions just look at the bottom of the question and you will see a box that says “add reply” it’s about 6 inches below (unfortunatley there is advertising in between).
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 brendon
my advice is go to the library and borrow some books on investing, start with Rich dad poor dad. Then go get some part time work to get some extra cash.
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 tljw1
Monopoly has given a great answer. I just wanted to add that when i was buying in Australia (when it was cheap) i used to talk to the economic development officers at the councils they were often able to give me some gems of info about possibilities for the area.
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 Kerwyn
you raise some good points. Unfortunatly the “cash clause” will often be requested when you pick up a good buy or ask for a lengthy settlement time. It is always good to try to have financial pre approval to speed up the process. Try to get the building reports done as quickly as possible.
When there are plenty of buyers around seller don’t want to sell home with long time (2-3 weeks is considered long) before it goes unconditional. They know the buyer can walk away from the deal if they want over that time but they can’t walk away from the sale. Often what happens is people buy homes subject to conditions such as finance and building reports, effectively they are off the market while the buyer does their checks sometime the sale falls through and the seller is back to square one, with the home not sold.
One other check you must do is get an independant rental assessment.
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 Al
welcome to the forum.
leasehold means that you don’t own the land just the building. In NZ usually that means Moari ownership, but not always sometimes its it can be another body such as the port authority in Napier. Freehold means you do own the land.
the problem with leasehold is that you will need to pay one extra bill every year. Locals don’t like the idea of leasehold (except in Napier they seem to accept it).
I’m not sure about the option to buy the land , i’d check the viability of that very carefully !!
personally i’d never buy leasehold. When it come time to sell you will find that there is a smaller pool of buyers prepared to buy leasehold.
One last comment cross lease is also common in NZ this is different to leasehold. Crosslease usually means that you own the land on a percentage basis with others who have a building on the same title of land.
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 Mark and Dot
with the little info you have provided if i was in your situation i’d sell and reinvest the money in better performing investments. Yes you will need to pay CGT but i’d still sell.
It looks to me like you have about $300,000 returning 0%. Not Good ! if it was my money i’d like it to be returning at least 15% (more if possible). Even if you can get a 10% return thats $30,000 per annum.
Certainly worth looking into.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 henry
i’ve been saying for ages that its very difficult to find good properties that are showing 10% returns, however if your adventurous look Overseas, 10% returns are still found in New Zealand and the last property i bought overseas shows a 25% return (not NZ). Do some investigation you will be rewarded.
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
a number of my friends and clients have mentioned that ANZ bank offer some great rates for insurance. I recently checked them out and was suprised how much cheaper they were than my existing broker – i’ve now got insurance through the ANZ bank.
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 Guys
i’d be interested to hear from Property Guru on this one as i’ve heard a lot of NZ mortgage providers making promises like this but not one of them to my knowledge has ever actually done it !
Well done to PG if he has finally found someone. So PG have you actually provided someone with 90% finance and if so what were the conditions and the interest rates ?
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 Kristine
i’ve heard (i haven’t had the chance to confirm it yet) that the SIT student numbers are up for 2005 , which is good news as they were down 300 in 2004.
As CastleDreamer says the New freezer works is about to open , i went past it about 3 weeks ago and its near completion.
When i was in Invercargill last, LJ Hooker had just had a really good run on properties and their vacant list was cut in half to 7 in one week. I’ve been over in the States for the past fortnight so i’m eager to hear how the rental market is now shaping up.
Perhaps you should ring the PM and ask why is your home still vacant (2 weeks isn’t too bad), they might be able to offer some advice, it could be that its poorly presented at the moment and may need to lawns mowed (just an example). Also ask how many vacant homes they have on the list and how is your priced in comparission.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 Zac
i’m with the other guys and especially Del’s comments, we need to manage our property managers.
One other bit of advice is to get landlord insurance it’s relatively cheap and the right policy will cover you for loss of rent from tenants default.
One other comment is that you should ask the PM what their process is with tenants behind in rent. Some excellent PM’s have a computer generated letter sent out as soon as the tenant is one day behind. I’ve found that once tenants get 4 weeks behind rearly will they ever catch 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 Dan
I’m happy to share what i know about the US market, i’ve made two buying trips to the States and have a pretty good knowledge now of how it all works.
I will be home tomorrow so give me some time to recover from jet lag and i’ll gladly talk with you. My number is 0011 64 3 4180083 or email me at the email address below.
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 Peter
i’ve just come back from my second trip to the States, Actually i’m not home yet , i’m in Oz and head to NZ tomorrow. Feel free to phone me on 0011 64 3 418 0083 or email me at the address below and i’ll give you a rundown.
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 Destined for millions
i used to invest in millicent about three years ago, nice little town. When i was buying at it there were heaps of things happening in the area , new potato factory, major windmill projects it was really starting to move. about 12 months ago I since sold and moved on
Oh and we were able to buy duplex’s for about 40K – oh the good old days
Millicent worth a look.
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 dazzling
i’d like to add to what padma has said.
firstly i can see how tough it must be without the support of your companion.
secondly you really need her on side at least supporting you in your endevours, as long as she supports you then you can do it alone, although its a lot more fun when you work as a team. I’ve been fortunate that my wife has been a great support, but i have a friend who have also retired from property whose wife is not interested at all.
thirdly , how do you get her to where she agrees that the two of you need to invest, i think you need to sit down together, one night when she isn’t tired and talk about your goals and asperations. share with her how you feel and also ask how does she “feels” about investing, padma may well be right and she has some fears that need to be overcome.
finally get her to see its not property that you are after but the better life that successful property investing can give you. 8 years ago my net worth was 25k and i was working only four days a week, today my own investments support our lifestyle and i no longer need to work (although i’ve started a business sourcing homes in NZ). My wife and 13 year old had the pleasure of 5 weeks in Europe in 2003, in dec 2003 we all moved to NZ for a “holiday”, since then i’ve been to the USA and just came back from 4 weeks holiday in Oz. My kids used to hate property having to sit in the car while we looked through them, now they see how its given us opportunities we would never have had on my salary and even the kids support my investing.
12 Years ago when i was studying full time at a Bible College, i was trading shares to help pay my way through. i wanted to buy some options. Options are very risky and my wife didn’t want me to do it. I was confident it would work and made a deal that the whole profit she could have to spend on a shopping spree (she had done without new clothes for years), she agreed and 2 weeks later my $1000 had doubled and she went on a $1000 shopping trip for herself. Perhaps make a deal where the future profit can go towards something she wants.
all the best, one last thing, if it doesn’t work now don’t let this become a thing of resentment towards her.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
well i’ve been away for a few weeks and this is one addition that i also find anoying, when i first started reading them i too thought that people had chosen to highlight those points. I agree with julia that it appears like we indorse these products our names are linked to.
Well i’ll be safe my spelling is so bad i’ll never get affected. Maybe you should learn not to spell, like me, see how it works cas h flow, stev Mcnite,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 bert
If i was in your situation then i’d keep an eye out for fixer uppers, look for a property that you can add a lot of value to by giving it a coat of paint and some new floor covering. Try to find something that is structurally good but cosmetically poor.
I bought a home in 2003 in Shepparton (vic) it was a mess it had some broken windows and punch holes in the plaster and some dog poo inside. The home needed heaps of work it needed a new stove , repaint inside and out and new floor coverings. Anyway it was on the market of 79k (well below market) i got it for 62k and after 20k spent it was worth 125k and is now rented at 180pw. Sometimes things that look bad like broken windows aren’t too bad these cost $150 to fix holes in the plaster only cost $200 and the dog poo was removed easily. I use this as an example of how a fix up of a structurally fine building can work.Once you have added a bit of value you can refinance and hopefullly get all your own money out of the deal as a deposit for the next property. It will take a lot of time to learn the market and a lot of effort to fix it up but the experience should be well worth it as well as the profit if you can do it successfully.
Thats just one idea i think is worth considerating, all the best, ps NZ is a fantastic place for this strategy.
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
