hi all

agent 007

you are a tease aren’t you[]

Does the company starting with “e” still have the contract to auction all houses outside the capital?
westan

hi guys

yes there is always a risk, thats why its real important to buy right not just buy as much as you can. I figure most of mine will be cash positive till interst rates get to 10% (can’t see that happening if it did the country would be stuffed) i don’t expect interest rates to rise very much but who knows, best to have some insurance (fixed rates) if you owe a lot of money. I don’t even mind the idea of take a little profit, but only if you have a few properties.
the real killer is rates up and vacant houses[xx(].
thats why its good to have a bit of cash up your sleaves. sadly some will get burned it always happens, but i expect it will be those poor people who have bought recently and have negative geared properties.
westan

hi inverstor

doing some figures it looks like you would have CG of say 80k after costs. As mortgage hunter said if you don’t own the property for more that 12 months you pay CGT on the full amount. if you are on a high salary you would pay nearly half that in Tax.[xx(]
if you wait, even if you are in the highest tax bracket you will still pay 25% Tax[] So if you wait 6 months you could save up to $20,000.
Investor your experience highlights how important it is to consider what stuctures we use to invest in. If for example you have it in a trust you can distribute the CG to whoever is paying the lowest tax that year. Sorry it doesn’t help you now but it will help others.
Another dilema for you is. Do you rent it out for only 6 months then the property is no longer brand new looking (as i assume it is now after your reno)[?]
if you choise to rent it out then another consideration is what will the price be in ten yrs, going on history it could be double the price. Why do you want to sell? is it because you are worried the market will drop? or is it because you want the money for more investments. if the latter is the case then why not refinance, you get you hands on some of the profits and pay no tax.
Sorry i’ve probably raised more question for you.

it a difficult decision but hey well done[] you just made heaps of $$$ reasonably easily[]

regards westan

hi muppet

it was truely great to meet you.

i’ve got a business plan for you, you set up accomodation for aussie investors and charge them for the accomodation and advice about NZ (which is excellent by the way).
or better still you could lock the doors and talk about how wonderful the “all blacks” are, us aussie would pay anthing to escape.

thanks so much for arranging the fantastic accomodation and showing us some beautiful scenery in your part of the world.

regards westan

hi Milen007

my guess is the vendor pays his commission to the selling agent who keeps it all for himself. the buying agent gets his commission from you.
$5,000 thats a lot of $$$. (thats enough for me to buy 1/2 a house), i believe you should buy your own properties this is part of the learning process. i reckon if you look through the forum there are enough leeds where the smart money is at the moment, and it’s not giving it to a buyers agent. yes get a building inspection if you havedoubts about a property. Valuations always puzzle me, i think by the time i’ve done my research in an area i know what the market value of a property is better than a valuer. All they do is look at what comparable homes in the same area are selling for, you should know this before you even put in offers.
all the best
westan

hi all

bridgette
Timaru is a really nice small city (pop about 28,000) it is on the coast and has a nice beach (not that you would want to swim with the ice-bergs but New Zealanders do). it has a port as well. the retail district looks prosperous, and is well presented. a few new looking cafe’s are positioned to give veiws over caroline bay. i’d like to buy there. Unfortunatley prices are a bit high for me. one i wanted to look at sold before i could get it. i believe rental demand is strong. Bridgette all you need to do is ring a rental manager and ask how many 3 brm homes they have available, then ask how long have they been vacant and check condition, sometimes houses can be vacant because they are dumps.
i don’t think you would get anything in Timaru for 40k, even in Waimate it would be hard now. Well done with ringing the cops, they must have been suprised to get a call from an Aussie investor. That’s called doing your due diligence.

regards
westan

hi Jay

i’ve got one for you. i’ve mentioned it before on the forum but since there are a lot of newbie i’ll say it again.
6 yrs ago i bought in Hobart in a place called clarendonvale. it was a brick 3brm house and was $33,500, rent would be 110pw. i bought it unseen as an aquaintence was also buying in the area and he checked it for me. i put some new carpet in and presented it to a property manager to rent. the next weekend i flew from Melb to Hobart to check it out. when i arrived the window had been smashed and the carpet (in one room) stolen. this was the start of the worst experience i have had in property. i had one problem tenant after another, if the property was vacant it got damaged. lucky for me it wasn’t the only property i owned so i knew not all property investing was like this. this year i had had enough and decided to sell it, happy to get 40k for it i put it on the market the best offer was 30k which i rejected, the tenant was making it impossible for the agent to show( she abused them) so we had her removed. when she left she damaged the property more doing $5,000 worth of damage.
the story has a happy ending, i got the work done on an insurance claim and sold it for 55k. So sometimes even bad property stories can have a happy ending. (unlike some of my sad share stories). as Dolf de Roos says “property can be very forgiving” if you make a mistake.
regards westan

hi

bill my price of 20k included new stumps and a new roof.

westan

hi lister

we did it. instead of extensions to our home we relocated a same style period home onto the back of our house turning our home from 12 squares to 26 squares. the house cost 3,000 but relocating it from 100km away and putting a new roof on it cost 20,000. i remember when we got it i said “it might take me 12 months to finnish it off, i’m not in any hurray” that was 5 yrs ago and i still haven’t finished it yet. But then again i’ve had 2 extra kids to add to the three, i’ve bought 30 odd houses renovated a few and had a busy full time job so maybe i’m not too slack. Sorry lister back to useful info for you. there are lots of extra costs electrical, plumbing, replastering, we did major alterations to our house. Be prepared to have a lot of extra cash it is difficult to get finance for a house on the back of a truck. the council will ask for deposits, the relocators want their pay, so you need a lot of up front money. when its finished you can go back and refinance it to get it back.

hope that’s a start, any specific questions?
westan

i think its all a load a bull[]

westan