Hi you’all, its fantastic reading all these strategies and drawing from the experience of you all out there.My scenario is we have just bought our first IP in Tokoroa NZ, good +CF. we want to firstly onsell this to create the income for neither of us to work traditional jobs anymore, but this onselling is proving harder than we thought. 6 weeks down the track and still not sold. On the other hand, should we keep this property, as prices can go up and its still good +gearing, and then buy more through the equity & CG of the property?
What are your strategies on ip? Buy and keep, or buy and flik?
I read alot of you have multiple properties, so obviously buy & keep is your method??
I’d love any ideas out there, be easy on my as i’m still learning your terminology!!
Squillion [strum]
[grad]
G’Day squillion,
not there yet, but I tend towards the buy and hold as I am not as agressive to make flips and wraps wrok for me. Just my personality. I like the idea of owning (or controlling) several IPs and earning a living of them to do the things I want to do. It is a slower method for sure, but it is what I am capable of at this stage. Who knows what happens in the future….? Maybe I’ll become a RE Agent …… and buy all my own listings???? Or use the RE system and become a ‘spotter’, unsure.
Look at yourself and see what you’re capable of, then look at what you want to achieve = your personal strategy! That is what I believe.Cheers
C@34
Hi Squillion,
My advice to you would be if you are trying to become a buyers agent, and flicking properties, that you should FIRST set up a data base of buyers.
Find a buyer (finance already approved) that is looking for say…. a 3br brick house on 12% gross return, and then YOU go and find the property that meets his criteria.
It will not work well the other way,
(hoping for a buyer) and you will either end up with a bad reputation by cancelling contracts, or be left with a lot of property that you don’t really want.How have you been marketing this property?
How much time is left before it settles?
Perhaps you could give a brief description of your property and someone on the forum could private message you for more info. Bear in mind, you are not meant to use this forum to advertise.
I have a few properties in that area of NZ, and good houses are selling FAST… Perhaps you could even put it straight back on the market now, for an increased price if you don’t want to keep it. Things are hot in TOK. For how long – who knows!
Good luck, [biggrin]
Del
Wow, this is SO COOL, and so quick to have replies, thanks to you both and great advices.
I have marketed the property through the newspapers and through internet, and we settled the property in our name 6 weeks ago.
So then the question is – how do you go about acquiring a list of buyers? Like, i presume the majority of people want to go out there and do the purchasing themselves, and only a minority would want to entrust that to someone else, wouldn’t they?Cheers
Squillion[grad]PS: How do you get those cool animations beside your name???
Hi squillion,
There are a heap of people on this forum who don’t have the time to go to NZ to find property themselves. Trust me! I am not one of them though, (personally I don’t trust a buyers agent to do as good a job as I would do, so I go there myself to buy).
A buyer’s agent would usually sign up the property under contract using the good old “and / or nominee” clause. They would have about 2-3 weeks in the contract before it goes unconditional. In this time the buyers agent arranges the due diligence on the property and onsells the property to a purchaser, collects his or her commission and the contract goes unconditional in the new parties name.
There are a few people running around NZ at the moment, who have suddenly called themselves a buyers agent, who really don’t know much about what they are doing, and are not making the best deals that they could for the client involved. They don’t know the areas well enough to negotiate the best price in their deals. It becomes a WIN / LOSE deal – win for the buyers agent, lose for the purchaser. [crying]
Just remember that a lot of responsibility goes on to the buyers agent, and they should at all times KNOW the market that they are buying in WELL enough to negotiate a fair price for the property. [grad]
If you think that you can do this job well, perhaps you could add a tagline in your profile, like you see the Mortgage Brokers do in the finance forum, (it works!!!) if becoming a buyers agent is what you want to do…. however, if you haven’t already, I would seek the advice of a good accountant, as the way you are doing things could see you get classed by Inland Revenue (tax office) as a “TRADER”. [fear]
Please also note – that there are a couple of excellent buyers agents that I know who frequent the forums, and are providing their Australian clients a great service! [biggrin]
Hope I have made some sense and not rambled on too much! [wacko]
Del
My advice is for you to have a good think about your long term plans.If you sell this property you need to think about how much of a gain will you make in 6 weeks, have you done any improvements on it and at what cost.If it’s a investment property you will be up for capital gains tax, the IRD have stated they are cracking down on traders.
If it’s CF+ you’re making passive money,so i would say keep it,improve it , value it and use the equity for the next CF+ property.
Also what entity is it in, if it’s your own names you might think about selling it to holding company or a trust you set up.If either is GST registered you may be able to claim gst back on it (divide purchase price by 9)because you are in the rental business,( i’m not sure if you can do this on second hand buildings but you can do it on land purchased from non gst registered people)
What ever you plan to do find yourself a good accountant who is also a property investor and work out a plan to suit your needs.ok, whats rent, whats selling price, whats rates, what maintainance needs doing, what are management fees thru agent there??
Answer these to me in a PM and ILL see what I can do to help. Yes I’m a spotter but have several buyers ready to go on the “right” investments.
Good Luck
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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