Tokoroa

Hi Westan,

We have actually made some “GOOD MONEY” from some of these areas in Tokoroa, so I guess it’s horses for courses…

“Perhaps” steer clear of the cheaper “forestry box” houses, as these are in the lower socio-economic areas. Just over the railway line is the not so great area (from memory). As with lots of areas in NZ, there are “bad streets” not bad areas. It is quite different to Australia.

There are good tenants and bad tenants everywhere though, and even though people don’t have lots of money, doesn’t mean that they will be a bad tenant.

A house will usually rent quickly no matter the area in Tokoroa, if it is maintained regurarly by the landlord.

A good Property Mananger and RE Agent is a MUST in Tokoroa, and I can honestly recommend Jenny from Lambertons. http://www.lambertons.com

Regards,

Del

HI Westan,

Recently I looked at a place in Tokoroa and even got to the stage of asking my NZ bank manager if he would do 80% finance on it. Here is part of his reply…

“I would not recommended that you proceed with the purchase for while the town is on State Highway One that is about all it has going for it. Tokoroa is a mill town is dependent on a paper mill for major employment. Over the years as plants become more computerised staff numbers are reduced and unemployment figures increase. From time to time there are major strikes which sometimes last months with no income so if they are a tenant of your property you have problems. Suggest that you stay right away from Tokoroa even if the land agents advertise the town is on the tourist route (everybody just passes straight through.)”

Although I have read and heard about lots of happy and sucessful Tok investors it seems my banker does not share the same sentiment.

Tok investors please don’t shoot the messenger! [ohno2]

Cheers, Nobleone. [biggrin]

“Making mistakes is just another another tool for learning.”

Hi all,

Nobleone – as far as the Mill goes, there is only about 250 people working there these days, (unless it has changed recently), I believe it used to be somewhere around 3000 people a few years ago…

The population of Tokoroa is 15,000ish, and so the if the 250 or so working at the mill go on strike again, doesn’t bother me so much. I would love it to get back to the 3000 or so again, and the town to buzz again though.

Westan – that’s fine, I realise you were just comparing areas within Tok, and I fully concede that especially now that the boom has hit “almost” everywhere in NZ, why invest in towns with “problems” when there are other similar priced towns that “appear” to have much more going for them.

I guess it depends if your main criteria is for capital gains as well as cashflow. We invested in Tok, only for the cashflow, and we were lucky enough to have invested there in the early days, and have made some nice gains as well.

I like Tokoroa, and I feel there are other towns in the North Island that I would NOT invest in, no matter what, (such as Mangakino – near Tokoroa, and even Taurmanaui. A lot of people may disagree about that town, but that is why investing is a personal thing, and you shouldn’t follow the “herd mentality”….

Muppet, we will be in NZ in April again, and so I hope that you can save some of that lovely weather for us!! I will try to catch up with you this time. We will certainly be popping into Tokoroa.

Regards,

Del

Hi Guys,

Didn’t Carter Holt announce a massive upgrade to their mill in Tokoroa recently? I thought it was late last year.

Muppet, you might have better knowledge of this being closer to the action and all.

Cheers
Jeff

Hi Muppet,

I am quite well exposed to the Rotorua property market. It’s one of the few towns I still own residential property in. Will be down there this evening so will check out the progress on the Bunnings site on Old Taupo Road.

Cheers
Jeff