Hi Guys,
When buying (making offers) in Invercargill be aware that you are now competing against first home owners with access to 100%. If you are looking in the 90 to 150k range – so are they.
Have a look at the product. Like most it is not for everyone and definitely not for investors. It is a joint initiative b/w housing nz and the society. http://www.sbs.net.nz/borrowing/home-loans-welcome-home-loan.asp
We did the open homes on properties in that range on the weekend and it wasn’t exactly sydney 2002. The trouble is that first home owners will probably pay asking price. In a multi – offer 2 weeks ago we were piped by a couple who paid over asking for a 2 bedroom weather board. ( I will give them some credit as it was probably the best example I have seen in that price range). There is still stacks of “trash” around with yield off the rack of over 10%.
Just a word of warning – there i still one “advocate” getting photo packs straight from the selling agent (and the rest of their DD). I thought this practice had died out a while back but…This may not worry some particularly if you are experienced and know the area very very well. It still does not sit right with me as I feel that agents are working for the vendor and not the purchaser. It i easy to aim the camera a little higher or lower or skip a problem all together.
Happy hunting.
Regards,
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Hi Don
offering 100% finance to first home buyers ! NZ housing will be getting themselves ofside with the Reserve bank who is doing everthing he can to kill the property market.
I would expect that prices will rise foir the lower end of the market, what your take ?
Are you still seeing plenty of buyer interest in Invercargilll ?
Thanks for drawing peoples attention to unscrupulous operators in the NZ Market. I haven’t heard of people doing that.
For those interested in buying in Invercargill i want to thoughly recommend Don as a buyers agent. Don and myself have opposing views about the direction of the NZ market but this doesn’t detract from my opinion of him or the service he will give you. I have know Don for nearly 2 years and believe him to be not only someone who is very thorough in his research of deals but you can expect honesty (and esential if buying from Over seas)
regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]HI there
Just wondering if that loan is available Nz wide?
Thanks
Hi MaiA,
SBS is the southland building society but I am sure they would lend NZ wide – good point!!! The add campaign is a national thing on TV and radio.
Cheers
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Hi Westan,
Not sure about the reserve bank but as we have seen at “home” in oz the round of rate rises are a calculated set of measured actions to achieve an end. As an outsider it appears that it is an adhoc round of never ending increases. There is a reason for this not in the least that they are trying to control behaviour.
A drop in rates is not likely but IMO based on what I have been reading and absorbing rates will be on hold for a while. Why – we all recognise that the economy of a country is more than just the housing market and rates put too high a pressure on the currency.
We have seen the currency weaken against the AUD and the US dollar this week but then again this is against a backdrop of inflationary pressures in the US and possible further rates rises there which makes the NZ dollar more attractive.
Not sure about the local economies elsewhere but I spoke to a builder in December who had 33 new single homes on the go (ie individual contracting to build homes on their own sites) and also read yesterday that the old showground is to be developed into a retail/manufacturing centre covering 24 ha. The new velodrome/sports centre is nearing completion and the old site is to be redeveloped. Rents for quality ie median and upper quartile homes are rising while rent for lower quartile homes are drifting off.
Again just based on what I am seeing locally is that employment growth is significantly higher than the national average. New employment is strongest in the light industrial area which means large numbers of new small businesses and or employees. However, the SIT still drew in 4500 students last year to december.
We have just finished a rehab for a client on a 1 bedroom flat (without garaging or carport) and hoped to increase the rent from $70 to around $100. I had the property manger call twice to get the finish date and we had it rented and the tenant in paying $120 a week before the carpet and vinyl were even finished.(NB this property only has an open fire and would fetch another $10 with a heat pump.)
But then again in the same street there is a 4 bedroom home renting for $120 a week, so it just depends on the sort of product you offer the market. The same 4 brm should be attracting at least $200 per week in rent.
Around the corner there is a block of 1 bedroom flats that are brick and could be receiving the same rent, but in there current condition they are lucky to be fetching $60 a week.
New employees rather than students are seeking rental homes and demanding a higher standard and hopefully and affordable new home which may not have been a realistic expectation in Auckland or Wellington.
Anyway – that’s just what is happening in my patch.
Regards,
Don
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]
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