Forum Replies Created
Hi John
in response to some of your comments,
But from the replies here there seems to be very few with any number of IPs OR lots of ostriches who havent considered Risk Mitagation!The forum has been very quiet over the weekend, perhaps the election ? you may see a few comments from now on. I know a lot of people on this forum who own more than 3 properties.
You mentioned you have a few other ideas apart from fixed rates, what are they?
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 NC Stone
the way the market works it out is divided the yearly rental by the purchase price and times by 100 to give you the yeild.
eg 150pw x 52 = 7800 per year dividend by 110,000 purchase price x 100 = 7.09% Yeild
It’s not a very good tool but one used by the market, but and is still of some use. Be aware it doesn’t include all the costs associated with the property eg rates, insuarance and interest on loans. But on the other hand it doesn’t include the benifit of leverage, if you can loan money at a rate lower than what your returning it can actually lift the return above the yeild figure.
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 Fluffy
i suggest you PM Del to find out all the details, i’d like to know what she is up to also. If you don’t know Del i have meet her and consider her she is a good friend and someone who knows the NZ market.
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 John
i own more than 3 IP’s and i don’t believe interest rates will get anywhere near those levels.
But to play it safe i always have a mix of fixed interest rates, in fact i have more fixed than variable.What do you mean by “locking down for 5 years” ?
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 Chad
Rotorua is a major city by NZ standards with a population of 50,000. It is world famous for its thermal activity and a major tourist destination. While its economy is very tourist orientated the city as a whole is fairly working class by NZ standards. From an investment perspective there are some good buys to be made in Rotorua. However you need to be careful where you buy. Some areas are not that great and one area while having the highest returns has poor quality tenants. This suburb- Fordlands doesn’t really look that bad, but managers tell me they have a lot of problem tenants and don’t want to manage property there.
As far as property managers i was very impressed with Richard Evans at Rotorua Rental. He iused to own Harcourts before he sold it. I would have a word with him about any property you were planning to buy in Rotorua (or use our buying service)[biggrin].
I don’t own any properties in Rotorua (but you can’t own every where)happy hunting
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 Brett
i agree with John, when you work out agents fees, stamp duty, capital gains tax the market will really have to drop to be able to buy back in at a better price.
Having said that as i’ve mentioned often here on the forum that i have sold about 20 properties over the past 18 months because i’m using that money to buy properties that will show better income and better capital gains.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 xxx
i was talking to a new solicitor today in Dunedin whose rates are the lowest i’ve seen, i haven’t used them but i will in the future.
email me and i’ll hand over their details
[email protected]
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 Steve
well its two hours since you started this thread and no replies yet, mustn’t be many renovators reading this arvo, perhaps they are still hard at it.
Ok my Golden rule is simple – make a profit.
yes its a bit obvious but its easy to get carried away and overcapitalise, or on the other hand fail to do enough checks when you buy and discover the costs are way more than you initially thought.
Some other things i keep in my mind is what am i really trying to do, is it – improve a property that i’ll hold as a retal or fix up and sell? To me this is very important as if i’m keeping it as a rental i’ll probably keep the costs in check and not spend too much on the fitout eg Carpet etc, where as if i’m planning to sell it then its looks great to have some really nice feature and spend a little more even on simple things like the letter box.My last comment before i let someone else have a go , is if it is a fix up and sell keep in mind the tax implications of owning and selling in 12 months time. Sometimes its better to rent it out “as is” for 12 months then do the reno and then sell. If you do the reno , then let for 12 months and then try to sell, the property is no longer in Mint 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
Hi all
Jeff when i was last in Te Puke i found prices very high and could find deals showing 10%, do you feel they exist ?
Muppet that would be more great news if it is true for Wairoa,
(for Aussie Wairoa is not on the Bay of Plenty)
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 Geoff
i agree with jeff and terry’s comments, but i see the Cash on cash return as my most valuable tool when i’m assessing a deal. But i need to ensure the % of my cash into them must be the same if i’m to compare deals. I always use a 20% deposit in the deal to see how it turns out.
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 Geoff
if you aren’t putting any of your own money into the deal but are financed 100% then you can’t work out a cash on cash return.
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 encourage anyone wanting to transfer money to at least look at the rates that you can get from ozforex site mentioned above, i saved hundreds by using them on a recent transfer. Its not just the charge (my was free because it was over 20,000) it is also the rates they give you for the dollar.
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
Shaun
this area is becoming NZ’s version of the Gold Coast, its one of the countries fastest growing areas. The beach at Mt Maunganui (part of Tauranga) is sandy (unlike most beaches in NZ) and is a tourist Mecca. they even have high rise apartments. Last time i was there (april)sitting in the sun on the beach i turned to my wife and asked why are we living in Balclutha when we should be living here. Tauranga has a great industry base and busy port. The city has it all except cash flow positive properties.
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 Derek and Yorker
Yorker if you want to mention areas then i believe you should be able to. But just put it on one post not all over the site like some have done in the past.
Also back it up with facts not just opinion, this will obviously add weight to your comments. I put post on often about are where i don’t own just because it is of interest to others eg Mildura and Darwin were two i mentioned.
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 wmcd
i’m using ozforex
look at http://www.ozforex.com.au
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 kay
sorry i should have said that
Yes i’m talking about with a 20% deposit. As i invest for cash flow i have to go for high returns, but i don’t believe i buy risky properties (risky areas).
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 Derek
i don’t really know you, but i appreciate the top job you and the other moderator do for us. Overall the standard of our forum’s moderation is excellent so thanks for all the time and effort.
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 TS and Geo
thats an interesting deal TS, but you need to find out what the cost of the money (mortgage) will be, usually the banks will charge you more for a commercial deal. Also be aware that you may need to put 30-40% into the deal. Sometimes this can destroy what looks like a great deal suddenly look average. Obviously with commercial deals often it can be only as good as the leasee. Vacant commercial properties can be a real drain on the finances.
To be honest i like at least a 15% Cas on Cash return. Not many of my properties are achieving that at the moment. They were when i bought them, but that was a few years ago and as prices go up but rents don’t the yeilds drop so i’m selling some to find higher returning ones.
what returns do others want
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 Brad
You need to be careful in Invercargill at the moment, rents have actually dropped in the past 4 months and unlike 6 months ago when the city had no vacant properties today the market, while still good, will not command the same rental as before. You MUST get a independant rental assessment on the property to assertain if in todays market the property is a $180pw home, many homes have dropped by $10-15 dollars. It is possible that this tenant let the home when rents were higher.
As one property manager said to me on Friday the market is still good just not as good. If the home is cold and over priced it will remain vacant in todays rental market in Invercargill. Properties are still moving but as said not if overpriced or inadequate heating.
You should be able to buy homes today in Invercargill that will rent easily, that need no major work showing at least 10.5% return.
I agree with Geo this deaol isn’t that great especially with the builders report, try for a 10K off or walk from the deal. If you want me to give you some feedback on the street/area just ask as i know this city well. I go to Invercargill often and will be there tomorrow.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 Jo and all
yes Stawell used to be the Center of the Universe but there was a very slight shift in the cosmic forces and it is now in New Zealand in a Town called Balclutha, Pronounced Bal Clutha. Famous for its ………. HMmmmmm
bridge – yes it has a big bridge over a huge river called the clutha river.
check out the picture , its on the bottom right hand side click to enlarge it
http://www.newzealandphotos.co.nz/main.asp?filename=thumbs.asp&REF=DE&Page=1and anyone who wants to see my part of the world
http://www.dunedin-tourism.co.nz/otago/CluthaDistrict/The link to Stawell makes it sound even better than i remember !!! No, it was an OK town. I’ve also lived in Echuca, Ballarat and Melbourne just for the record. Sorry to bore you all[blush2]
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
