Where to buy an IP in NZ for under $35K??

Hey Bridgette,

quote:

---

I am limited in my funds. Max $35K

I only want to buy a property that is on a free hold section and that is in a high renatl demand area that will grow (have capital gain).

I want to have capital gain and don’t want my property to be rented to unemployed people who could trash the house. Hence why the area has to be attractive.

As I am wanting to buy a property for investment purposes, it really does have to be in an area that has little unemployment and again is in an area that is in demand for rentals.

---

This was pretty much my criteria too,except perhaps, I was a bit more limited in the funds department[]. I bought a small cottage 6 months ago and cosied it up (with batts and paint), I could have let it out six times over, (if I had of got the painting finished sooner[]). As this was my first rental purchase here, I am no expert, and can only tell you of my own experiance with this one cottage. However, I did not avertise for tenants at all, just asked around, and have got great people in there now.

quote:

---

Tell me, what attracts people to Gore?
Is there a lot of work in Gore? as I have been told otherwise.

---

Gore township is sort of like the hub for the surrounding district.. There are two freezing works withink 10-15 mins from the town, a dairy (chesse?) factory twenty minutes away, and another one in town, a tulip bulb farm and factory, two timber yards plus there are a lot of dairy farms, and of course millions of sheep. So quite a bit of the work available around here is seasonal, but it is quite consistant, with different jobs going in the off seasons. Also Invercargill is only 40 minutes away, and have heard of some people commuting there for work and study.
There is Kentucky Fried chicken here, but no McDonalds, heaps of childcare places, good schools, they run some of the “free fee” courses here, in conjunction with the Invercargill Polytechnic (SIT), they have good sports facilities (just opened the new swimming pool/ice skating rink), and of course the trout fishing here is world famous, (or so the signs say anyway!). Ooops, nearly forgot, they hold the annual country music awards here too, they call them the gold guitar awards, and they seem to be getting bigger and bigger every year. Gore has a sister city type thingy going with Tamworth(?) in Austrailia with regards to this. Dont know if that last one was relevant or not, but thought I’d throw it in anyway[]. On the downside Gore does have a reputation as a bit of a hoons town, with boyracers being a bit of a problem, however the town planners have put in roundabouts all thru the mainstreet to curtail them, and have made the town look much better and safer at the same time.
My own personal strategy is that I am going for CS (cashflow), but am thinking that some CG might not be out of the question, ever hopeful anyway [], but not counting on it! Good luck

Hi Bridgette

I live about 65kms from Mangakino.
What follows are some ideas about the area in no particular order.

Mangakino was an old hydro village. It was in the news last year when the land owners put the leases up for sale. The new owner upset some of the leesees.
I suggest have a look at http://www.searchnz.co.nz and type in Mangakino and see what you find.

A bach recently sold for about $3000 but was on leasehold land. The lease had about 8 yrs to go.

Century 21 estate agents have an agent there. Again have a web search for them.

I have a number of agents listings but they are at home.

The area overlooks a hydro lake. Very pretty I think. Mainly retired people and life stylers as there is not alot of work in the area.

Further info Bridgette: These figures are from the 2001 census.
Mangakino Pop about 1200-1400 (49% European and 48% Maori)
Employment:
22% full time
12% part time
10% unemployed
52% Not in labour force

43% of houses are empty (mainly baches)

Rent for a 3 bedroom house generally ranges from about $130 downwards to under $80 per week.
Let me know if you want more info.

Regards

Oh Gosh,

I don’t check this website for 1 or 2 days and it’s filled up!

This forum is like a little community of its own … it’s wonderful! You all sound like you know each other … is this a fair perception?

Bridgette, CF is shorthand for cash flow – I’m guilty of using that term myself (you may also come to realise that I tend to use a lot of shorthand – apologies for that in advance).

I’ve just done a general search for properties in the Gore area. They seem reasonably cheap (with some 4br at $90K). I’m making this statement on the basis of prices in Sydney, so that may not be a true reflection in comparison to prices around that area. Is Gore the same as West Gore?

Can anyone tell me what’s a reasonable price to pay for a 4br or 3br in the Gore district? What is the average rent for 4br or 3br in that area? (I know these info are available through r.e. agents, but I’m usually wary of estimates given by RE agents – I’ve been told that they tend to inflate the rental amount achievable — so wanted to get an investor’s perspective first).

I’m only starting to learn about NZ, so I’m mindful about not jumping into PI without doing careful and thorough research, but I don’t want to miss out on a good deal either!

I have also never been to a rural town before – I’ve spent my entire life to date in capital cities, so I have no idea what to look for when trying to invest in non-capital city or inner-city areas. Any tips would be great!

Thanks heaps in advance to anyone who can help!

Cheers,

Hi all
How does an aussie go about getting finance for a NZ property? Any recommendations? I heard that you can’t get more than 80% finance.

Hi Fibejebe,

quote:

---

Which town has Tim Shadbolt as Mayor? Wherever that man is, is likely to be a good investment.

---

That would be Invercargill, and yes, I agree too, he has done wonders for the place.

[]

quote:

---

Hmmmm okay… this is a tough one but I have heard that the following are selling properties under 50k some under 40k. Check these suburbs out but please remember to think why they are selling them this cheap – has the one and only major business just left town? Has the local gang beefed up their businesses in the area, are all the youth moving out to go to the big smoke.

Lots of questions to find answers to – there maybe people on this forum who are traveling to NZ soon so maybe you can come to some arrangement with them to help you understand more??? I will let those people contact you.

Towns to check:
Tokoroa
Kawerau
Woodville

Gore – too bloody cold if you ask me!

hi im going to nz 1st nov and tokoroa is 40 odd k from hamilton where im staying with my folks will check it out kind regards chris hope i havnt screwed this msg up

.

http://www.propertytalk.co.nz/modules.php?name=Content&pa=showpage&pid=45

---

For those that havent see it.

http://www.tenancy.govt.nz/tenancy/Market-Rent/market%20rent%20region.asp

this is the stats on rental prices for all areas in NZ. (broken down to suburb level). Its run by Tenancy Services (So every bond is required by law to be lodged with them).

Craig
NZ Property Investing News
http://www.Landlords.co.nz

i would say that as a generalisation, the cheapest houses in NZ are in the highest risk areas.

Either that or they need a lot of fixing up.

I heard that the higher the yield with investments, the greater the risk. I would say yeah that sounds about right.

Like the areas I’ve been buying in, sure they have great cashflow returns but the banks don’t really love lending against them as much as city properties. If it’s usually 20 percent then it’s 30 percent in those areas, if you can get it at all.

get hold of a broker and ask them for the list of suburbs that you need 30 percent deposit for. I’ll bet you it’s where the best cashflow deals are found.

yeah mangakino, I think that would be a bit risky myself. however today’s risky is tomorrow’s opportunity. Tasmania is a case in point…i think NZ is going the exact same way…

cheers-
Mini

Hi, I am from NZ, and own a IP in Tokoroa, frankly there are very few IP’s in NZ under 40k and for good reason. What can you really expect for that amount ???
If you buy in a smaller rural town then you have to expect to have a smaller rental market to source your tenants from etc. Yes , you will get good CF but the CG will be small. And as someone else said earlier that banks will only lend 60-70% of the purchase price. So there are a few things that you need to consider. Personally I wouldn’t recommend buying at that price range.
Cheers
LL