Tokoroa

Hi all Aussies once again

It is great to be part of this very lively forum
with some very talented investors

I agree with many of the comments made
“there are good deals and bad deals in every town.”

I totally agree’ and I guess there are hardluck stories everywhere.

Hey my comments were only comments and opinions held by some Aucklanders for what they are worth.

They obviously touched a few nerves but if it makes us all the more wary of all the due diligence one should do before investing as Mini points out, well and good.

I might even take treak down to Tok in the middle of our Winter when all the Aussies have left and the mkt has softened.

Cheers
TakeAction

Granyre,
yes absolutely! – deals are everywhere, the town is fine, if the deal stacks up, yes!

Del – yes couldn’t agree more!
Steve (or I, you, westan, or our spotters) may not be buying ‘this week’ because the numbers don’t stack up, or our offers are not accepted because someone wants to pay more, however as we all have bought there in the past that means it’s obviously not ‘the town’ per se – it’s the DEAL!

ibuycashflow- exactly, I sold too not that long ago to a young couple of “A.W”.s for a 106 percent capital gain on what I paid for a house I bought in South Taranaki. I bought on a 20 percent yield and sold on a 10 percent yield, and to make you cry even more, I was the classic bad and lazy landlord and did the absolute minimum to the property, in fact never even visited the place. I passed on a complete maintenance-trap. So for me it was SMART to sell. However for the people that bought it was SMART to buy. CF+ve, sitting lovely good tenant who works at the local school, prof. managed, 10 percent yield, lovely cute appealing house, corner section, brilliant lush grounds, big palm tree, 1000 sm plus section. Still an upside because of Kupe and strong rental demand now as there has always been there. (one of my reasons for buying there at the time.) So for them it was SMART to buy that property which has so much potential and just out of Wanganui to boot.

And yes I would re-buy into that same market! For the right deal! Now, I’d try and BUY at 12 percent there (of course!) OR, I could have held on to that house if I’d been – say – an owner occupier wanting to renovate it trendy as my own home, or if I’d felt like doing a reno. However I did two renos last year and, you know, one only has so much time, it’s hard work, even if you don’t do the labour! – and if it’s tenanted, one doesn’t tend to get around to it.

OK reason for talking about that on a Tokoroa thread is that it’s sometimes valid to sell and valid to buy in the same market, it doesn’t necessarily mean that only mugs are buying and only smart people are selling. It’s just if that particular deal suits what you are looking for – either the price/yield/condition etc. – you see if I can sell at 10 percent somewhere then buying at 11.5 or 12 percent is a good deal, right?

That said, it doesn’t mean I am nec. going to necessarily ‘trade’ straight away, only that yield is one sort of ‘benchmark’ as to whether you got a good deal in any market. I.e. if the yields are generally selling on 10 percent and you buy for 11 or 12, (other issues notwithstanding) you got a good deal which has a buffer built in on purchase. Well that’s how I look at it.