OK I’ve taken the plunge (Thanks steve for giving me the courage) I’ve decided on Tokoroa because I dont have a lot of money to invest. I’ve been reading through previous posts on the nice wee town and am becoming more confident in my decision.
One thing that pops up is the “bad streets” of Tokoroa to have rentals, high vacancy rates etc. I now live in Sydney and havent been to Tokoroa for a few years, can anyone give me a heads up on the “Good” and “Bad” areas of Tokoroa when purchasing IP’s. The real estate agent has told me both places I am looking at are in a good area, but I’d just like to double check.
I have to say moving to Sydney has given me a different perception on property, Saying ‘Its near the rail way line’ in Tok which equates to 2 trains per day. I lived next to the line in Ashfield which had a train on average every 5 minutes.
I think when I move back to NZ I might give quiet Tokoroa a go, I might even get some sleep.[biggrin]
Hi Dohicky,
Have you considered going back for an up to date DD trip. Doing it that way you could pick your streets and wait for a property in your preferred location.
Try a pm to Muppet on this forum. Local knowledge is invaluable.
cheers
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I would speak to the the Realtors and property managers in the area. There are two main offices:
Lamberton’s Realty
Swanston Street, Tokoroa
07 886 8229 – speak with Jenny Lamberton, she is great!Harveys – Realty Waikato Ltd
Leith Pl Tokoroa
07 886 8064
Speak to Linda Churchill & Kath ChapellThey will tell you the good/bad areas of Tokaroa. They went out of their way to show me around when I was visiting and were very helpful. From memory, the ‘Wai’ area, with streets beginning with ‘Wai’ were the good streets. But there were many areas where vacancy rates were high, so you need to be careful.
Regards,
OziHi Guys
Kathy, Property Manager at Harvey’s won’t manage houses or flats in certain streets of Tokoroa.
Regards
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ask a RENTAL manager who is NOT connected with the sale of the property you are thinking of buying!
I.e. if the property is listed with Lambertons, ask Harvey’s rental manager what they think – and vice versa. You will find that the story will vary. The selling agent will say ‘this property will rent for $165 a week’ and the one not selling it to you will say ‘$135 tops and only if you fix up this that and the other’. But the truth is more likely to be the worst case, and anything on top is a bonus – at least that’s being quite prudent about it (always recommended!)
cheers-
MiniHi Mini,
The property is currently tenanted so at least i know the real rental value, thanks for the advice! I will make sure if i buy any untenanted properties i get an independant rental appraisals, Don and Liz gave me the same advice, I think its a very good idea.
still looking for another property… The search is neverending. I keep getting pipped at the post on the good ones, some people are paying way too much for these places.
Hi Dohicky
The property is currently tenanted so at least i know the real rental valueSorry Dohicky this is wrong.
Be careful, just because a home is currently rented at a set figure doesn’t mean this will be the market rent. It is possible to
1. Over rent a home, sometimes you can get more rent from someone because they are desperate. Current rent does not equal what the next tennat will pay
2. Irf you own a home put someone in at an inflated rent with the view that they gat something in return? This is shonky but some people get a high rent with the view they will sell the home at a 10% return for instance. Lets say a home is 50K and the rent is 100 pw = 10% some one will buy it. Ok you gat a tennnat to pay 120 pw then you sell it at 10% its now 60K home on a 10% return, the seller just sold for 10K more than it is worth. Now you give your mate who was paying 120pw a nice bonus. (Not saying this as an idea but as a warning what others have done).regards westan
http://www.nzpropertytogo.com
check it out !
Properties in the USA 15-25% returns- email to join our database [email protected]Hi Dohicky,
Westan is right!!! You have got to keep your gaurd up re yields.
I here you have found your first deal!!!
Well Done! Keep up the good work.
[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.i’m in nz at the moment, just read yesterday in the paper that the mill is scaling back alot of jobs in tokoroa and and keeping the rotorua mill going.
just be aware
cheers
shaunLead, Follow or get out of the bloody way
Hi Guys
Please be aware that CHH have at least 3 mills in Tokoroa.
1. Pulp and paper mill = 1000 employees. Most of the WORKERS life in or near Tokoroa. The MANAGERS life in Rotorua and Taupo and use company vehicles to come to work. It is this group that Graeme Hart will target NOT the workers.
2. A Plywood Mill = 240 workers of which 40 are being made redundant because of the townturn in Australian new houses being built.
3. Framing Mill = 25 workers. This mill is being transferred to Rotorua.
Tokoroa is NOT dependent on one mill.
The main mill employs about 1000 workers and there is NO ideas for it to be closed. Whereabouts 20 yrs ago it employed 5000 workers.
Although 4000 workers from this one mill have gone, Tokoroa as a town is still here and will remain so for at least another 25 years.Regards
Regards
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Hi Dohicky
When it comes to sitting tenants Westan is absolutely correct.
You also can not be sure the so called tenant paying the big rent will still be there after you have bought the place.
I have had this happen to me on 3 occasions and either had a few months wait to find another tenant or had to drop my rent significantly. You never catch up the lost rent so you find that your expectations on yields have a few big holes in them.
You can minimize the risk by making sure you ask the property manager, not the sales person, what the real deal is. I did this on one of the properties I bought after the fact unfortunately when the tenant disappeared a week before I took over. The PM asked me who told me this story that it had a good long term tenant in the house. I said the sales person told me, only to find out the person was in town for a few months and the rent was a bit higher than it normally would be: so check it out. Never ever take the word of an agent as gospel.
Kerwyn
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