Howdy
I haven’t been on this forum since last year when I purchased 3 ptys in NZ, which all have shown remarkable capital growth.
Can any Kiwi bird dogs pls put your hand up as I am looking to increase my holdings over there.Thanks.
Hi macwa,
Mini has an awesome property I spotted on Monday in Dannevirke if you’re interested. I’m sure she’ll be happy to send you details. I also have another that I was going to keep for myself that I could pass on, awesome house, excellent location, good for a keeper. Send me your email and I’ll hook you up with the details. Mini also has another one of mine coming out late this week, so if you’re not already on her deals list ya probably want to get yourself on it!
Cheers,
PCSuccessful investors make their money when they buy
Nigel Kibel is another contributor to this forum, who would be worth contacting. I’ve had some dealings with Nigel recently, he is very knowledgable and a great guy.
Regards
Alistairthanks v much guys, will follow up
can i ask you what you think of the kiwi market at the moment?
Hi macwa
in response to your question about he NZ market. I’ve been living in NZ for 18 months (moved over to make the most of the market and enjoy the country). Over the past 2 years i’ve bought about 25 properties in NZ for myself and about 100 for clients so i speak with a bit of experience.
The market has risen very strongly over the past 3 years especially the last 2. I feel its hard to see the market rising much more. So i urge you to dampen any expecation of quick money in NZ. However if you are prepared to take a long term view then NZ looks very attractive. I feel more so than Australia because of the higher returns available in NZ.
Personally i’ve sold about half my NZ portfolio in the past 12 months, but am not selling out completely, like i did in Australia over the past 2 years (well not quite completely, i have 4 properties left). The only reason i’m selling is to reinvest in New Markets i’m active in.
If you buy well, then NZ is a good long term investment. Just remember that with interest rates at their current levels then a 10% return isn’t cash positive, (but hey they are better than 5% in OZ).
In regards to birddogs, i see Minimogul is still finding some attractive deals. I’d love to help myself but i’m very committed on my USA bussiness at the moment.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
thx Westan – I actually used you guys to buy the first two ptys – spoke to Alvin mostly – the service you provided was first class!
i viewed those investments as long term anyway so any quick upside will only allow me to use equity to go again sooner than later (hopefully)
your US biz sounds intriguing – do you have any info readily available?hi everyone
thanks for that westanAll those deals Vicky found were fabulous but they are all gone now. However I will have more, if you wanted to join our list it is completely free and we pitch deals to clients on spec.
More information is available here
http://www.nzpropertytogo.com/birddogs.htmlI probably sound a bit like a seminar here (steve taught me well) meaning ‘you can make money in any market if you know what you’re doing’. yes, I see yields and so on in the US and if it wasn’t for George Bush maybe I could be a bit more excited, but also I know the NZ market better than most these days after two years of
‘total immersion’ , that to me is as priceless , as I can find deals where yield plus capital gain created = the same result as a high yielding US property, and NZ has other advantages to Aussies too. So then if you force capital gains, you can do it quicker, which is another main factor. Sure
you can do that anywhere but the reason I am still in NZ is I know it and have a network, and that to me is priceless.So, how’s the market? Basically 2 years ago we were buying things on a 20 percent yield that people said ‘you’ll never get capital gains there you know’ and they went up heaps, doubled etc.
Perhaps those people were either just concerned with cashflow, or speculating – but they made money without even necessarily doing anything, basically!As the market started rising – yes even in the small towns – people smelt money, investors came in droves, prices rose, and all you’d do is basically buy ’em and capital gains would take care of the rest.
these days we look for a different sort of deal, one that is going to get capital gains not just because ‘the average house price in NZ is going up’ but because of A REASON. this could be area -specific…or property-specific, i.e. a deal that you can “force” capital gains to happen to, because of *doing* something.
All of our recent deals have had some sort of “double up-side” to them as a hedge to whatever the market is going to do.
I really really doubt that the cheapie deals will go down. There’s just too much demand for them, and always will be! it’s the overpriced or million dollar or brand new ones, that you buy at their peak, and you can’t do anything to raise the value to, that *might* suffer, depending on supply and demand, where they are, that sort of thing.
I am constantly surprised at the amount of cheapie deals being sold to home owners, not just being traded from investor to investor. Investors tend to think they drive the market but statistics and my experience say it’s homeowners, all the way.!
The last two properties I owned which I just sold (like Westan I sold some of the ones that had made the most capital gains and re-invested in areas that I thought still had capital gains to go – still in NZ – )
went to owner occupiers not investors, and I am hearing the same story from other investors I know selling in NZ.There are other things we are doing now, focussing much more on, subdividing is a biggie – adding units on the back, that sort of thing – you might not be able to buy CF+ve in some towns any more but if you split the section and sell off half, you often can.
Sometimes even just selling with DA approval is enough to make 70, 100k on your deal you just bought, something that might only take you a matter of months. Something that would take you 2 years to make if you were waiting for the market to make you 10 percent capital gains a year.
So this is the kind of deals we’re moving into in the market now. We’re still buying decent buy and holds if we can find them, but really, we want a second reason as well that a deal’s a great deal.
I don’t really see prices going down. Not the sort of deals that we’re buying, anyway! Look at the same time as prices in Auckland were ‘flattening’ and the whole headline thing was looming (Auckland of course is so big that it affects the stats for the whole of NZ) – at the same time as that, Taranaki for example was going up 45 percent a year on average. That means that where you buy (my aim, anyway) is to ourperform and defy the market! We do this by specifically buying in a sector of the market, and area, etc. Or, to quote Steve, problem plus solution equals profit. Loads of towns where i thought prices might go down, they haven’t at all. Part of this is that just when you thought prices couldn’t go any higher, rents started to rise.
anyway, our system is basically a network of freelance spotters who pitch me deals and I am sort of air traffic controller, matching investors with deals. this way the investors have access to deals from all over NZ.
cheers-
MiniHi All,
As some of you know Liz and I have moved to NZ. We have not brought a property since we moved here but still consider ourselves buyers not sellers. In fact, we consider ourselves investors rather than speculators.
I imagine there will be some changes in our portfolio over the next two years but our holdings on NZ property will increase rather than decrease.
Our position in the NZ market is based on the fundamentals. That is, the economic fundamentals ( I knew I would eventually use that degree for something.)
However, rather than go all mirco/macro on you all I will describe in laymans terms what I am seeing “through my eyes”. Some people will interpret this next comment the wrong way, however, investing, especially property investing is not an exact science.
The numbers are crucial but if you spend all day listening to commentators and so called experts all you will ever be is part of the crowd. You may take some small profits along the way but when you have those dinner table conversations (spin forward ten years) you will probably be the ones saying “Ã wish I still owned the property at such and such, Imagine what it is worth now”, maybe I could retire!” Or “I wish I had brought 6 in xville and not 1, why didn’t someone tell me the new freeway/developement/zoning change/tax regime etc etc was about to come online.
Perhaps the days of treating the NZ property market like an offshore equity fund are over. Now maybe some serious property investing can take place.
So, we are still buying but buying quality properties “Keepers”.(that is our position) We are fixing the problems that come up along the way and adding what we like to call “real value”. That is, changing our properties place in the rank order of properties for that suburb. ie moving ours up the scales of desirability. Make the properties appeal to owner occupiers, investors and tenants. You can then use this increase in equity however it best suit your investing needs.
Cheers
Amen Don and Liz
I’m hoping someone may be able to clarify the situation for me. I’ve been spending every possible moment familiarising myself with as much information as possible in as short a time as possible. I now find myself reading postl to guage the feelings of others,and I’m getting the idea that I may have missed the boat as far as NZ is concerned….and just about to fly there to see for myself. Feeling Quite insecure about my decision and wondering if anybody can help.
Hi vatel,
I would take your time. There is no point rushing out to do anything. The market in NZ has slowed down, but that doesn’t mean there are no deals out there. It’s just harder to find them. I would spend a lot of time researching before you fly over there.
Regards,
OziThanks for everyone’s feedback.
If I can throw my two cents in – Vatel – yes the market does sound a bit heated in areas and those absolute bargains are harder to find but that shouldn’t stop you.
I remember when all the talk in Sydney around 1999-2000 was everyone thought they would be able to pick up bargains in Sydney post-Olympics when the market was ‘supposed’ to come right off? Well they were wrong and could have got set then alot cheaper then when they eventually did in 01-02.
Do your due diligence and something will eventually stand out.
My experience in NZ (i am a Sydney sider) has been great due to the fact I did my due diligence (albeit all internet based), used Westan (bird dog) and just went for it.
The combined value (around $150k) of the places I bought have nearly doubled in just 12 mths – all are positively geared.
Good luck.
the fact that the market has slown down means that it will be far easier to fiond good deals. Currently its winter not a lot of stock. As spring approaches then you will find good deals
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Listen about the 99 percent versus the 1 percent, when I was yelling about CF+ve being on every corner 2 years ago the forum was full of 99 percent of people saying you’re mad, you won’t get capital gains, it’s so risky etc.
well those that did buy then when it was supposedly so risky did the best. Then it made it OK for a large crowd to follow who also did quite well. So those who can’t find the same properties at the same prices and the same yields in the same towns as we were buying then have perhaps decided the market is over.
But that is ridiculous!
OK those same properties are selling now for twice the value on a ten percent yield not a 20 percent yield. And we are not re-buying THEM we are buying other sorts of deals.
Those deal don’t exist any more- at least not in those towns, at those prices, and those yields.
Back THEN, we would buy a house for 27,300 which rented out for $110 a week.
But today, I would buy a CF+ve property on a 3000 sm plot of prime land in a city of 60k growing at twice the national average – you betcha
Would I buy several hectares I could subdivide into 17 sections in the same town, a town with a shortage of sections, a site right next door to an established subdivision of 300k homes? would I then get the DA approval and then onsell for 100k profit in 4 months? Sure I would.
Would I buy a 20 percent yield leashold property in a town expected to grow 76 percent in ten years? With zero vacancy and one agent reporting 300 people on a waiting list for rental properties? Sure I would.
Would I buy something for 220k that I could re-sell for 300k + in 3 months with a valuation to match? sure I would. In fact I’d buy as many as was humanly possible!
Would I buy a cheapie house for 35k half an hour out of a town where yields had sunk below ten percent, on a 16 percent return, where the town was expected to swell by 5 percent population in the next few weeks due to industry moving in?
Sure I would.
Would I buy something in one of NZ’s largest cities, walk to town, less than 6 months old, and rented to professionals, on a ten percent yield?
Sure I would.Would I buy a house for 67,500 on a private sale 11-12.8 yield assessed – where other comparable sales listed with agents are around 75-80k? In a market where properties sell on a 9 percent yield? Sure I would, and I actually money-back-guaranteed the clients that one would value up!
Would I buy a subdividable property for 55k on a ten percent yield, where you could also add value to the house and raise the rent? Sure i would!
etc etc etc etc etc
These are all deals that I bought or offered to the client list in the last month or so
so, yeah, I call it ‘forced capital gains’ – some call it value adding, problem plus solution equals profit, etc etc
it’s all there for you
and some people will even offer it to you on a platter and hold your hand through the process for a fee, fancy that….http://www.nzpropertytogo.com/birddogs.html
cheers-
Minii COULD NOT AGREE MORE
nz IS STILL A GREAT PLACE TO BUY, ESPECIALLY IN THE MAIN CITIES WHERE YOU WILL GET GREAT RETURNS AND STRONG CAPITAL GROWTHNigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Thanks everyone. You’ve made some very sound points and I really appreciate the time you’ve taken. I hope you won’t mind if I contact some of you if I have a specific question, but you’ve really improved my perspective and helped me get over that feeling of panic that we newbies must get from time to time.
Good on yer Nigel!
If you don’t know the market then get advice from someone who’s out there making money and doing profitable deals. That doesn’t mean you have to use a bird dog to find such a deal, but rather than doing nothing, if you don’t have time or confidence to go over there and learn the market and do it yourself, you could do a lot worse than using a bird dog.
!cheers-
MiniRichmastery is NZ largest Bird Dogs sourcing service which offers extensive information on each property including independent valuations, rental assessments and has many properties secured at sizable discounts.
Visit the Real Estate deals area at: http://www.richmastery.co.nz
Richmastery Customer Services
[email protected]
http://www.richmastery.comReal People, Real Strategies, Real Results
Giving you the Power to ChangeFor Aussies thinking of investing in NZ, or wondering about the current market, there’s a good article by Terry Ryder in this month’s (July’s) Australian Property Investing magazine.
kay henry
Hi Kay,
I read that articile in API and thought it was contrary to what I was seeing here on the ground in Invercargill. Well I was right! Latest stats show that mediam prices have increased 10K in the last quarter.
[email protected] – Experienced investors living in NZ who can find properties to meet your needs! Email us to receive details of upcoming deals.
Project management also available – finding solutions for problem properties! We can manage your renovation project for you.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
