Forum Replies Created
Hi John
if your question is about- is Horsham a good place to invest (which i think it is) then my answer is yes. I lived in Stawell 65km away for 7 year , until i moved to NZ in Dec 2003. I have 1 property still in horsham after selling one in about july. Having said that, my selling makes it look like i don’t like the area this is not true, i just wanted money for higher returning properties overseas.
Why i like horsham is it is the major city in the Wimmera and the biggest city from ballarat all the way to murray bridge in SA, North south it is the biggest city from warrnambool to Mildura. I also believe it will benifit for the huge mineral sands project at Douglas south of the city. There is also mineral sands north of horsham as well as gold deposits around the murtoa area. Farming has been good to horsham over the years and often when crops fail north of the city the wetter climate south of the city produces good crops. The area has been hit hard by the 7 years of draught but i expect this will not last forever. it is expected that horsham as well as Stawell will be the only centres in the wimmera that will experience population growth over the next 25 year (dept of infrastructure), as many people retire from the land into Horsham. Horsham as the main city in the area has many government jobs which help the local economy also.hope this helps a bit
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 Byronent
i don’t want to appear to be saying that buying in Broken Hill today is a bad thing, it may well be a fantastic investment. I just wanted to use that as an example of how things can go bad for a town (at least for a time) and those who needed to sell back in 1997 would have done very badly. If you were buying in 1997 i reckon you would have probably got a smile on your face.
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 Byronent
you raise an interesting point that i discussed at length on another thread a while ago. I think we need to be wary of the way agents, who are trying to sell homes, present the areas that they are working in. It is not uncommon for them to give a better than reality picture of rental demand and price, thats why i stick with the property managers they usually don’t have a vested interest.
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 malliebelt
Welcome to the forum.
to find out rental demand i think you are best to phone property managers and ask them how many vacant homes they have on there rental book and how they see rental demand, ask them what types of homes are renting well and what are slower to rent. Ask them also how long nicely presented homes are taking to rent out, these sorts of questions will give you an idea of rental demand.
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
Ryan, i have always diversified to spead the risk of having all the investments in one town.
Byronent, Broken hill isn’t the 3rd largest town in NSW by a long way. Broken Hill is a classic example of what can happen to centres that rely on one main industry, back in 1997 you couldn’t give away your homes there, some were selling for 25k. In hindsight it was a great buying opportunity but those poor people who had bought there years before when prices were way higher, they were cut to pieces by the decline of the city. In the 1960’s Broken hIll had 30,000 people by 1996 Broken Hill’s population was recorded as 20,963 (in the 1996 Australian census- Australian Bureau of Statistics). It continued to decline with a population of about 20,096 (2001 Census – Australian Bureau of Statistics).
so Ryan i’d take caution and spread the risk.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 Byron
i’ve been buying cash positive properties since 1997 but by early 2003 i could no longer find deals in Victoria that were showing a high enough return. So i’m not surprised at all that you can’t find deals (unless you are prepared to speculate on a mining town in the middle of WA or some tiny little town km’s from anywhere). In 2003 i started investing in New Zealand then there were heaps of cash positive properties many showing 15-20% returns. Saddly the NZ market has boomed and cash positive properties are showing less yeilds and harder to find. But unlike Australia you can still find cash positive properties in very good locations. Do a search on NZ on this forum and see how others here have done very very well out of their NZ investing. Then get on a plane and come over and see for yourself.
all the best
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 ksb7
i’m inclined to build your investments and rent especially if rental costs will be well below the loan payments on a home.
However i’d also look out for an opportunity to buy something, keep and eye on the market and try to pick up a bargain, one that is below market value or one that you can improve, this maybe a cheaper entry into your own home, fix it up and sell it off in a year or two and as terry says you pay no capital gains tax.
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 Michael
i find that agents often will not be as honest as they could about the rental demand of properties they are trying to sell. I suggest you ring the property managers in the town/city, ring all of them !
ask how many homes thay have vacant at the moment and how long have they been vacant , also ask why are they vacant. I say that because some times property managers may have a few vacant homes but when you talk to them they tell you that they are vacant because they are in a poor condition or don’t have cooling or heating.
also ask them what types of properties are harder to rent and where do they have touble renting homes (which streets and why).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 Grant
yep those are cash positive deals. i don’t expect you to reveal where they are but if you are looking into these types of deals make sure you have a good knowledge of the mine life. Obviously if the mine closes a cash positive home becomes a liability very dramatically.
all the best with your investing.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 female aged 20
yes if you could get 50k per annum rent it would be a great deal.
to get finance you will need a commercial loan, this usually means that you will need to provide 30-40% of the purchase price, the other thing to be aware of is the interest rates will be higher than residental investment loans.
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 grant
can you give me an idea of the types of deals you call cash positive, rental income plus purchase price will do.
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 Arthur
there are differences between the states with the law and process of property transfers, i agree with crj you Must use a local person to do the transfers, when i’ve purchased interstate my Victorian conveyancer didn’t want to touch anything from another state.
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
i think one of the most valuable assessment that you must do is a free one. This is an “independant” rental assessment. Property managers will be able to tell you if the market assessment given by the selling agent is accurate. They will also help with their opinion on the rentability of the home. Switched on property managers will also be able to advise what you can do to the home to not only add value but add to the rental income.
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 gogo
i can understand your frustration. I too found that cash positive properties were very scarce. I wasn’t interested in investing in isolated little towns of under 5,000 people but wanted to continue my investing quest for cash positive properties. In 2003 i stated investing in New Zealand. Today the market has risen a lot but there are still quality deals to be found. I encourage you to look across the tasman and see what you can find.
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
Sis i agree that we have just seen one of the biggest property booms in australian history,
but as far as the stock market goes the US has also just experienced a once in a life time boom as well. The stock market clocked an average annual inflation-adjusted gain of 12% from 1980 to 2001.
i wouldn’t be so confident that its about to have another so soon.
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 welcome to the forum
sorry to be very blunt but if you want to get ahead you need to cut back your spending.
with an income of 100K who guys should be knocking that personal debt off in 1 year.
how did you end up with personal debt of 27K, (you don’t need to answer this) maybe you are living way beyond your income. Cut back the spending and reduce debt then when you have control of your money move forward and 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 K and R
why have one mentor when you can have hundreds? aren’t we all mentoring each other a little on this forum ?
i’ve learnt heaps from people here, hope you do to.
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 Tim
i know an accountant in Queensland who is up with NZ, email me if you want the details. i don’t know if they are expensive (yet) i’m just very impressed with their knowledge.
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 Yack
i agree, be careful in the market.
just to clarify it was actually me who started investing in 1997.
actually i was telling people on this forum that they should be selling back in july 2003 and reinvesting in NZ which was well before steve first book came out in August 2003. Those who did have made a great profit.
Today, for those wishing to buy large potfolios, i think that the time has come to look for new markets, as NZ is getting harder and harder to find great deals.
Sadly Australia is not the place to do it either.as a side matter Yack, if your having a go at regional areas (as we know you have in the past) just remember if rates go to 9% people with bigger mortgages in the big cities will be hurt more than those with high returning properties with smaller mortgages. So i wouldn’t be going out and buying a $500,000 IP in Melbourne today either.
Yack i must catch up with you to compare some notes after you O/S holiday.
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 Mig
i’m amazed how many people on this forum are christians.
i’m another one. A lot of the christians on the forum who i’ve met are really interested in wealth creation so they can get time back in their lives to do the important things in life -like time with family and making the world a better place.
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
