Hi there, I understand from posts that people are achieving +ve props in NZ.
However, as these mostly old IPs which would require a great deal of ongoing maintenance, I imagine you would realistically need to be making more than 10% pa.
Can anyone comment on this?
yep – you’d want to achieve about 15-20 percent if you bothered fixing up an old place – otherwise just buy the 10-11 percenters in good nick.
I did it twice (on purpose to maximise my cash) by buying ‘problem properties’ that were no use as they were (even though tenanted, it was the wrong sort) and by sorting out those properties maintenance and redecorating, i was able to achieve 20 percent returns from day one *even on the combined ‘purchase price plus reno’.*
joy to the world
thanks for reply Minimogul, but it doesn’t sound like there are too many of those around??
Sorry Minimogul forgot to add …….read one of Muppet’s post where he mentioned PM fees of 10% +GST, CRICHEY…….. Is that average going rate for NZ…..
How is a potential NZ investor to break even, let alone make any money.hi Marisa,
on the contrary, i believe there are still heaps of three main kinds of deals i look for around
type a)
10-11 percent in good nick, rent as istype b) 17-20 percent yields once renovated/maintained, (including capitalising the cost of that into the purchase price)
type c) 12-16 percent and the odd maintenance issue, or maybe could renovate further down the track
i went for type b) because i wanted to maximise my cash
PM me your email address if you want to see some actual examples with pictures
re: 10 percent management fees, that equates to
about 2 percent of the yield, so let’s say in Aus it’s 5 percent, i.e. 1 percent, then if your nZ property was 1 percent higher in yield than your Aus ones (it is, and then some) you’ll be OK, so don’t get bogged down on that one OK!
joy to the worldHi Marisa
in addition to whatMini has so cleanly explained.
rental management varies from place to place i pay from 7.5% to 10% depending on the area. i’d much rather pay 10% if i knew i had a great property manager. Unfortunately price doesn’t reflect quality.
and 10% in some area swill get you a brick home.
regards westan
thanks Mini and Westan I always appreciate all the info you provide.
Hi and thanks for the forum.
I am trying to purchase +CF in NZ and was wondering if anyone can help me find a bank or a source of finance in NZ, broker etc. I have got properties in Aus and cash for a deposit on NZ property but the banks in NZ don’t seem to want the buisness. I’ve tried ANZ, Westpac, Kiwibank, National Bank of NZ, and trying HSBC at the moment.
Any help would be appreciated.
MarkThanks Rob
but already thought of that but it would only let me buy one or two properties there as I would run out of properties here to refinance. Also it may also affect the tax paid in NZ ie not sure if I could offset interest paid in Ais against income in NZ.
Do you know a broker in Aus (preferably Melbourne) who deals in NZ?Mark
Hi Mark,
You might want to try Steve from Mobile Mortgage Market ([email protected]) as a broker. He’s based in Melbourne and I’ve used him to arrange finance for my NZ properties and plan to use him again in the future.
MattDo you know a broker in Aus (preferably Melbourne) who deals in NZ?Hi Rob,
Looks to me as though Mark lives in Melbourne.
Matt
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