Read the news letter dated 28 Feb regarding property in NZ. Just so happens I was thinking about buying an investment property there. Found one property in Hamilton with current tenants paying $260/ week and asking for $209,000. I know this isn’t quite cash positive but does appaer to be better than most examples I find in Australia. Especially without stamp duty. Latest news letter 31 March talks about the downturn in the housing market. Was wondering what anyones thoughts were on whether investing in the NZ market at moment would be a wise idea.
Thanks
Hi Alaine,
Personally if it were me, the return on this property at Hamilton would not be worth the hassles of investing off shore, ie… you will need NZ Accountants & tax returns etc., possibly a NZ structure, etc..etc… It can all get quite expensive, unless you are looking to buy quite a few properties there.
There are PLENTY of properties in Australia that can return you at least this amount, if not better!
There are heaps better deals in NZ also. My best advice would be – Don’t rush in. Sorry to be a bit of a “wet blanket”, but you did ask for people’s thoughts…
What are you looking for – capital growth, or cashflow? I believe that Hamilton has slowed a lot in the recent months, and the possible capital growth there in the next few years may be minimal. If you really want to invest in NZ, I’d consider some smaller regional towns. They are not all dingy!!!! Some are beautiful places, near the coast. Places like Turangi near Taupo might be able to give you capital growth as well as slightly better cashflow – Just my opinion though…..[blush2]
I am going to NZ in 2 days, and if you like, you can email me if I can be of assistance to you. I could inspect this one for you, or possibly look out for a deal with a better return for you, for a small fee, depending what your goals are.
Regards,
Deli agree with dels comments
regards westan
USA information evenings in Melb, Syd and Brisbane in early April, email me for more info. We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Alaine,
Found one property in Hamilton with current tenants paying $260/ week and asking for $209,000.Hopefully you would be able to find a better return than this. Might pay to use the search function to see where some of the other forum members have been investing. Purely for the types of return achievable and the discussions about pros and cons.There is alot of valuable information out there.
.
Good LuckI am with Del and Westan on this one – there are better deals out there!
CastleDreamer
NZ Investor and Property SpotterThanks for the feedback. Just to clarify things. I don’t own any property therefore i’m elegible for the $7000 fist home owner grant and no stamp duty upto $500,000 (in NSW). Currently I’m paying low rent for a good place and the propery prices in my area very inflated. The interest on a smaller unit would be more than the rent I’m paying. However I would like to buy something. If I buy in Australia I would loose my grants. However I am allowed to buy overseas, like NZ. That is why I’ve started looking there. Some people say they would find cash positve or other good investments for a fee. If anyone does that please give me some more information on how and what info you would provide and how much the fee would be. Also does anyone know where i could any information on where to find good investments overseas.
ThanksDump the Hamilton deal and contact MiniMogul, she’s the queen of finding NZ CF+ deals to order!
All the best!
I am an Aussie in NZ
Good properties can be found in Sth Auckland
(Manurewa area) where typically you can buy a reasonable 3 bed house for $150k – $200k
Generally rents from $250 – $350 per week
HOT AREA at the moment is Randwick Park – new college built about 18months ago. Proviing to be a popular school.
Check out http://www.trademe.co.nz for more deals as well (including mine !!)Hamilton deal is definitely not good. I’m a kiwi investor living in Auckland. You should buy nothing with less than a 9% yield. Takanini, Papakura, Manurewa, Papatoetoe and Otahuhu are all good areas for yield. IN Manurewa the only thing to watch is some parts of the suburb Clendon are very rough. Visite Realenz.co.nz and learn how to search there. You can find properties listed with a 9 to 10% yield. To check market rents in Auckland go to http://www.dbh.govt.nz/housing/tenancy/Market-Rent/market%20rent%20area.asp?Region=Auckland
I often have 10% deals on my website hotpropertynz.com but they don’t last long. Email me if you’d liek to be kept informed of good deals
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