Hi there everyone,
I have known about this site for a long time now, but I have never visited it until today. I have just spent some time reading through a few of the posts and it looks like a really great forum with a great bunch of people. A big thanks to Steve M and his team for providing this awesome resource for us all.
Ok Who am I?
I am just your typical Kiwi Bloke that started off like everyone else. I began my working life as an apprentice mechanic. Then ventured into sales as a Rep for an automotive parts company. I always knew that I wanted something more out of life than a weekly wage could offer, but didn’t really know what.
It wasn’t until my partner got a job promotion to another City, and we decided to rent our house out rather than sell, that I actually started to really think about Property Investment – So you could say that I got into Property Investment by accident
We got some good advice early on about restructuring the ownership of the property and the mortgage etc. From there I started to take a real interest in Property Investment, and I read every book I could find and attended a few courses etc.
(It’s now late 2002) I then did what a lot of people at this stage DON'T do. I took some action! And actually started buying some investment properties!
I had heard another investor (It may have been Brad Sugars) say that if you wanted strong positive cashflow, multi unit properties were the go. So my first investment purchase was a block of 4 x 2 bedroom units in Rotorua (Central North Island) I was actually living in Christchurch (South Island) at the time, so I ended up purchasing my first ever investment property 'sight unseen'!
This turned out to be a great investment, both from a Cashflow and Capital growth point of view. And I still own this property today.
I actually found and bought these units via a NZ Property Investment company that offered a property finding service.
By this stage with all that I had started to learn, and my recent purchase of the 4 flat property, I had caught the property bug and was well and truly hooked – This was my 'something else' that I had always been looking for.
So I decided to quit my sales rep job, and immerse myself in property 40 hours a week by working for the Property Investment Company that I bought my flats through. Not for ‘what I could earn’ – but far more importantly ‘what I could Learn’
(March 2003) My first day on the new job. My boss (who had just purchased the local Franchise of the Property Investment Company) was only 2-3 years older than me, but he had started investing in property when he was only 20 and had amassed a ‘very large’ property portfolio in approx 13 years.He was completely financially free at 33 and bought the Property Investment company franchise because he had never had his own business before, and this was a great opportunity to build a property related business with his vast PI knowledge.
Working with this man was a totally amazing experience for me, being around this guy all week every week was just awesome! I couldn’t help but learn heaps!
Ok, to cut a very long story short. My main role within the company was of a property finder, sourcing and putting deals together and passing them on to our investor clients both within and outside of NZ.
I was able to learn a lot about PI very quickly, by actually doing, and being involved in many hundreds of transactions over the 4+ year period that I was working with them. During this time I came across heaps of fantastic deals, many of them I was able to purchase myself.So as well as helping many many other people build their portfolios, I was also able to build my own
By mid 2007 my own portfolio had reached a size that enabled me to be financially free, and no longer ‘have to work’ for someone else. Also I wanted to free up more of my time to focus on my own investing, so I decided to step away from my role with the Property Investment Company.
I owe a great thanks to my ex boss, for first of all seeing my potential and actually hiring me. Then 2nd for all of the great knowledge, experience and guidance you imparted on me over those years, and for being a good mate. Thanks Campbell. I am forever grateful!
Property Investment is very addictive and can be extremely rewarding. In the current environment there are some awesome opportunities coming up here in NZ and likewise in Aussie, and for that matter many parts of the world.
Property prices have come back, and with the collapse of world stockmarkets and many businesses struggling in the current economic environment, some vendors are becoming extremely motivated to get their property sold.
Couple this with what are historically very low interest rates, and WOW what a fantastic time to buy property for the longer term investor.
I look forward to partaking further in the discussions here.
Happy Investing!!Welcome Clint,
Congratulations on your success.
Sthat mustve been a life changing opportunity when you switched to working for the property investing company to be able to learn so much more and get such amazing deals for yourself
Yeah, he's got me thinking how I could carve out a similar opportunity for myself. But then, success doesn't necessarily come from copying other people.
Thanks for the comments guys.
Yes it certainly was a turning point, with no looking back.
Basically when you get to the stage where you REALLY want something, you need to do what you have to to move towards it.
So for me that meant making some short term sacrifices, and fully focusing on that one thing – Learning as much about Property Investing as possible, and getting fully involved in anything that was related that i could. Property seminars, mentoring groups etc.
I even changed how much time i spent with certain friends etc. They do say that 'you become the average of the five people you spend the most time with' and how true that is.
Something to think about eh.
Interesting. We haven't deliberately changed our friends, but we have noticed that success has changed our friends. I've noticed that we are closest with those friends who also have their own businesses, and who are pretty savvy financially. And friends who have not had their own success (with one notable exception), have disappeared from our lives.
SSHales wrote:Interesting. We haven't deliberately changed our friends, but we have noticed that success has changed our friends. I've noticed that we are closest with those friends who also have their own businesses, and who are pretty savvy financially. And friends who have not had their own success (with one notable exception), have disappeared from our lives.
SYeah it is interesting. Of course we still spend time with our non-investing type friends. As we all have different friends for different reasons and interests. For example I have a group of friends who are all 'petrol heads' so to speak and are into cars and motor racing. As well as other friends who are into investing and business etc.
But when we first start out with investing, many of our friends won't really 'get' what you are on about when you talk about investing etc. many of them thru a lack of knowledge will try and discourage you from sticking your neck out and taking risks.
Generally they will have this opinion until you prove yourself as being successful – But you have to be careful that we don't listen to them in the early stages, and have them talk us out of it.
Until you have proved yourself to these doubtors, it actually pays not to tell them too much. They can still be good friends tho – But just dont let their uneducated conservative ways influence you to much.
Man i dribble on.
Hi Clint,
Just read your post – very inspiring and wonderful to hear as I myself have always considered that there is much more to life – the hardest bit isn't "waht" it is but knowing "how" to make it work!
I myself have been researching the NZ market noting the great affordability of housing with no stamp duty (and capital gains if selling) but being an Aussie with a portfolio at home, I have heard that it is more difficult (as an overseas investor) to manage an investment property in NZ due to NZ's poor landlord's acts and rights – apparently a lot of nightmare experiences out there which I've personally heard! Also have found out that we as Aussie's have to pay capital gains for property in NZ under our Australian tax/return.
Would like to know your thoughts and best wishes
QMIt has been hard for me as I haven't had a job for 7 years after going back to university after leaving a nice secure job. I have this bug you are mentioning but not having income has put me in a holding position at the moment. When I get a job again it will be full steam ahead but when that is I don't know. I have been a house dad to two daughters while my wife supports me and that has been price less and next year my daughters both be starting school so I should be able to devote time to either getting a job or running my part time business full time and property investing.
Hi Clint,
As a fellow Kiwi, very interesting. I live in Brisbane and purchased a 2bd villa in Cairns last year, 1 month ago a unit in Shailor Park, and hopefully tomorow find out if finance has been approved for a small apmt in Surfers. A little scary at the moment with job security, but I say 'Make Hay while the sun shines'.
I would like to in a few months, buy something in Auck for my mum to live in. And I am only on 35K pa. The only equity I really have is $40k in the Cairns property. So if the figures can work, it can work well for you. I have been to a few different seminars and read books, but would love to do this full time. I changed careers recently and have been doing drafting for nearly a year (mainly renos and low set new porperties) and have a Dip in Interior Design. So itching to combine my skills and move ahead.
Do you still live in NZ? Also I went to Property Investing 3 day seminar last year in Melb, it was great. I was surprised to talk to quite a few 'experienced' investors who went and said they got something out of it. Cant afford or have time , this year tho.
Cheers
Neety
QM wrote:Hi Clint,Just read your post – very inspiring and wonderful to hear as I myself have always considered that there is much more to life – the hardest bit isn't "waht" it is but knowing "how" to make it work!
I myself have been researching the NZ market noting the great affordability of housing with no stamp duty (and capital gains if selling) but being an Aussie with a portfolio at home, I have heard that it is more difficult (as an overseas investor) to manage an investment property in NZ due to NZ's poor landlord's acts and rights – apparently a lot of nightmare experiences out there which I've personally heard! Also have found out that we as Aussie's have to pay capital gains for property in NZ under our Australian tax/return.
Would like to know your thoughts and best wishes
QMHi there QM,
Thanks for the kind comments.
In regard to your comments about it being harder to invest in NZ from Australia in relation to property management etc. I Dont really think this is the case. As right from when I first started investing I have owned properties well outside of my own location. And I have operated the majority of my portfolio remotely.
So basically I dont really believe there to be any great difference between me being in Christchurch (South Island) and purchasing rental property sight unseen in Rotorua (in the middle of the North Island) As well as the remote ongoing management of the property. And the situation of an Aussie based (or anywhere else for that matter) Investor purchasing and managing an Investment Property in NZ.
We now live in the Hawkes Bay in NZ, and our porfolio is spread accross NZ, and we dont actually own anything (other than our home) in our own location.
This is certainly one major thing I have learned over the last few years, alot can be achieved remotely, we don't 'have to be there' to get things done. With the use of the internet/ email/ phone/ skype etc it is quite easy to organise what ever needs to be done. Of course a good network including property managers and tradespeople helps alot.
As far as tenant horror stories goes. I really can't say that i have had any major trouble. Of course you always have the odd smaller thing, a tenant getting behind on rent, or skipping while oweing rent, or the odd broken window or hole in the wall or something – But this just goes with the terriotry. If you own low-socieo-economic type flats etc you have to expect a little bit of this. But a good property manager with a strict tenant selection criteria, as well as the manager keeping 'ontop' of it and nipping any issues in the bud certainly helps keep this to a minimum. – I certainly havn't had any nightmare stories
To be honest I see more issues with landlords who live in the same city/town as the rental property and choose to manage the tenants themselves. As many self managers seem to be a little slack at keeping ontop of things, with the serving of 10 days notices when a tenant gets behind in the rent etc.
I know I wouldnt have lasted as an investor very long if i was managing my tenants myself.
Why limit the results of your property investing by buying property soley in the location you live……
neety wrote:Hi Clint,As a fellow Kiwi, very interesting. I live in Brisbane and purchased a 2bd villa in Cairns last year, 1 month ago a unit in Shailor Park, and hopefully tomorow find out if finance has been approved for a small apmt in Surfers. A little scary at the moment with job security, but I say 'Make Hay while the sun shines'.
I would like to in a few months, buy something in Auck for my mum to live in. And I am only on 35K pa. The only equity I really have is $40k in the Cairns property. So if the figures can work, it can work well for you. I have been to a few different seminars and read books, but would love to do this full time. I changed careers recently and have been doing drafting for nearly a year (mainly renos and low set new porperties) and have a Dip in Interior Design. So itching to combine my skills and move ahead.
Do you still live in NZ? Also I went to Property Investing 3 day seminar last year in Melb, it was great. I was surprised to talk to quite a few 'experienced' investors who went and said they got something out of it. Cant afford or have time , this year tho.
Cheers
Neety
Hi Neety,
Good on you! You are out there taking action, regular consistant action. Which is exactly what needs to be done, and exactly what alot of people dont do after attending investing seminars. Keep it up.
I always remember the comment "It doesnt matter how much you earn, but how much of it you keep and what you do with it that really counts" It appears that you are a great example of this, as was I in my early days when I first started out.
Yes we are still in NZ, but have recently relocated to a warmer/sunnyier part of the Country for better lifestyle.
With attending of seminars etc, I have always said if you only pick up one new piece of great info or tip, it is well worth it, as that tip can help you make alot of money over the years. And in my experience no matter how long you have been doing this, or how much you think you know, you can always learn something new. I have even seen seminar presentors admit they just learned something from one of the antendees.
Thanks Clint for your feedback.
Perhaps I didn't express myself clearly – I am a one who believes in investing outside of my own location and in fact, am residing in NZ as we speak. My point was more so of investing my next investment property in NZ or Australia and the pros and cons between the two.
I also would never manage a property with tenants myself; on majority of the cases, it can it interfere too much with privacy on both parties as well as matters/complications, which are better handled through a third party such as a property manager.Bets regards.
QM wrote:Thanks Clint for your feedback.I also would never manage a property with tenants myself; on majority of the cases, it can it interfere too much with privacy on both parties as well as matters/complications, which are better handled through a third party such as a property manager.
Bets regards.
Yeah I agree totally
Clint and Neety,
My husband and I have done well over the last 9 years of property investing. Thankyou Steve and others. We keep going forward, but many times have had to take baby steps because of our income and the expenses of bringing up kids at the same time. We always look at returns, positive cash flow is our thing, but there have been unexpected costs along the way, particularly with accountants fees and costs associated with running our Property Company.
We slowed down for a while, but now is a great time to get back at it and we are really looking to increasing our portfolio again. I thought it necessary to secure our finances now (in case of job loss as I see this as the greatest risk) and increase our family's cash flow so we could continue to strive and prosper. I just had to think outside the box. I agree with you Neety that if income is limiting progress is limited.Cheers
BelindaHey Belinda,
Good to hear that you and your husband have been doing well with property – Thats what i really like about property, that ordinary people like you and I can move forward and improve our positions reasonably quickly (a few years) by building up an asset base and rental roll that increases over time, whilist our mortgages stay the same or slowly decrease. All with the use of OPM
I was just thinking about this last night after talking to one of my friends (who was moaning about their financial situation) Financially they are going no where fast! And they have very limited options. – I was in the same boat as them about 7 years.
But I wanted to change my situation bad enough that I took some action and made the decision to learn some new things, and jump into it boots and all. Back then I shared what I was learning and doing with my friend, and tried to help them get started too – To no avail, they thought it was just too hard and It meant getting outside of their little comfort zone – So they didnt do anything at all!
Where as now we control a multi million $ asset base, with the associated rent roll that comes with it. This gives us options, to work if and when I want to, not because I have to, options to sell down some assets if we choose to pay down debt, ability to borrow, because of the large asset base and rent roll.
Where as my good mate is stuck, he has already down graded his family home once, due to too much consumer debt buying things he couldnt afford. He now whats to sell the house and look at moving city, but due to the depressed property market, he is unable to sell the home for enough to make everthing work. And they are probably still in the same financial position (if not worse) than they were 7 years ago – Very frustrating for me.
Moral of my rant – Nothing worth having in life comes easy! Sure we face a few hurdles along the way, but if we want it bad enough, we find a way! By jumping over it, going around it, or busting straight thru it!
Is it all worth the effort? ……..HELL YEAH!!
So keep at it guys! Do what ever it takes, and get use to being outside that comfort zone, as nothing much ever gets achieved in it.
Thanks Clint,
Great to hear words of encouragement. And also Richard for your knowledge.
Neety
Hi Guys,
Well after posting my Introduction post back in March, I have had many messages and enquiries if I offer any form of mentoring. In the past I have not, as my sole focus was on Investing for myself and building my own portfolio.
Well after many requests to make my experience available to others, I have joined forces with a fellow Kiwi Property Investor, and we have put together a unique ‘web-based Property Investment Mentoring Program’ that we call ‘e-Coaching’. This enables you to learn how to be a successful Investor from the comfort of your own home and at a pace that suits you. – Very affordable as well
All sounds interesting. We have 9 homes in Invercargill NZ and live in OZ. I think the key is to have a really good property manager, pay them well, keep in contact with them once a month for a little update chat, check all of your statements and bank every 2 weeks- mid month and eom. As soon as a tenant gives notice advertise asap for another one- pay for ads on net and paper, so you dont have vacancy in between.
We have had more issues and problems close to home in OZ with our properties 10 – 15 min away and they are all very strictly managed- as our family own agencies also.
I laugh now but if anyone should have been deterred by property maybe it should have been us??
In the space of 12 months we had 3 major issues- 1 lovely home worth nearly 480k aud, and rented to a great tenant- neat, tidy, rent always paid, gardens done. After the ex wife finding out the tenant was moving in the new girlfriend- of which the new girlfriend applied for tenancy and was approved and accepted by our agency and was a great tenant/ neat freak.The ex wife broke into the home and lit 18 fires and blew up the house and pool filter- only 4 walls left, 1/ 2 a roof, and a destroyed pool. So luckily we had max cover and 12 months rent default- as took CGU 14 months to rebuild, and ended up costing them 265,000. So a lesson learnt please check all of your policies and make sure you have the maximum cover in all areas, especially full replacement, demolitian, rebuilt, asbestos clean up, and rent replacement.
2> Had a 5 brm renovated home in Logan- nice street, good area, long term tenant for 2 years, tenant unbenown to us started suffering depression and started drinking, taking drugs, hooking up with a wild crew and one weekend destoyed the whole house- kicked in walls, splattered paint, smashed windows, took the front door, threw dirty nappies everywhere, vomit, wee, alcohol- the whole lot, ripped curtains. Mind you the house at the last inspection was perfect, rent always paid on time. So 18,000 of damages later.
3> Attack of killer termites in Logan
3 bedroom full brick home, ant capping, checked yearly, no gardens or food matter around- Within 3 months since last PMgt inspection termited invaded and ate skirting, window sills, some walls, behind bathroom vanity, inside walls. Aah another 12,000 damages.Well after crying a lot for days and getting emotional about all of this, another terrible thing happened in my life- my younger brother died- so I thought well theres 2 ways to go only here- up or down, forward or back. So I ploughed into property full time to buy, renovate, build, subdivide and it kept me really busy and my mind focussed, plus every day I looked at deals, met all sorts of interesting and funny people, laughed a lot, read books, and enjoyed sitting in the sun or taking a beach walk with the dog and I think in about 12 months I bought and sold about 17 properties.
What I learnt from this terrible year was you can make excuses and give up, or you can go forward and let all the new experiences, challenges, daily tasks motivate and help you also go forward.
The main driving force is freedom, and having your time. Time to be with family, friends, time to go to the gym, swim, walk, sleep, learn, travel, give money to family if they need it.
So I guess property has had its ups and downs but this is life and Im glad Im not int he 9- 5 corporate job working for a terrible boss, or battling the traffic daily and breathing up all the pollution. Thise wanting to get into property – listen, learn, read, believe in yourself, talk only to people around you that are into business or property about your deals or they will bring you down or speak against your dreams and youll end up giving up. Learn to eliminate excuses, like – no time, no energy- etc- make time, dedicate time in your diary, go to a quiet place and study, tell friends only ring you at night or certain times, get rid of distractions around you so you can focus and achieve your goals. I did it and it works, but not an easy path but well worth it.
Kylie xx
Hey thanks for posting your story Kylie – Awesome!
You are right so many people do tend to give up before they reach that 'Critical Mass' point, because they think things get too hard. You are a great example of someone that has 'pushed thru' the challengers and has acheived success
We actually talk alot about this in the first module of our e-Coaching Program.We have just made a new Blog Post – Motivate to Activate. Check it out > http://www.propertyinvestorcentre.co.nz/blog.php?blog_id=6
(part two coming soon)
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