Hi Guys and Gals
I am wanting to find an investment property in Auckland. I have been looking at properties in west Auckland (Te Atatu South). Up to $350k.
This is purely an investment property. I guess im like everyone as i would prefer to have a positive cash flow property aswell as a property that appreciates over time (will keep for atleast 5 years)
I will be thankful if anyone with good knowledge could help me out
1) What suburbs would you suggest investing in?
2) House or an apartment? (i have heard apartments in auckland is not a good way to go)
3) Do you have any other ideas? i have heard capital gains tax may be coming in shortlythanks in advance
I’ve also heard that apartments are not the go in Auckland.
of all the places in the world – why did you chose Auckland?
thanks for your comment
i was brought up in Auckland, most of my family and friends are there. i guess i just feel more comfortable investing in an area that i have some knowledge about and have people that can look after the property if im not in the country.
No Capital Gains Tax atm, no stamp duty, good rate in tax depreciation (ive heard)
Hi Turneg01
I can't assist you with suburbs or area's although could refer you through to a reputable real estate agency based in Auckland. As far as apartments go…….I have been told there is simply an oversupply. A company called BlueChip went broke in NZ and took a lot of investors money with them. A have a lot a NZ clients who were caught up and lost money and now have units that are nowhere near what they paid and hard to rent due to oversupply.
The New Zealand Budget was handed down in May 2010. Prior to that they formed a Tax Working Group to work out how they could "fix" the tax system in NZ. The Working Group targeted property investors and looked at a few options.
1. Capital Gains Tax which they don't have in NZ.
2. A Land Tax.
3. A horrible tax that would have taxed an investors equity in property and
4. Changes to Depreciation AllowancesThe government decided and announced in the May Budget that they would not introduce options 1, 2, 3 but introduced changes to Building Depreciation where the current allowance of 3% per annum was reduced to 0% effective 1/4/11 and is restrospective.
Hope this assistsHi Turneg01 and others. I specialise in finding cashflow property in NZ for many of my overseas and NZ investors.
Speedy Gonzales has pretty well covered the budget. No stampduty or capital gains tax here, but yes depreciation on buildings has been cut. No worries, it just means more than ever you must have good cashflow properties.
Thats where I come in, I don't like dealing with things like room by room etc, been there, done that, seen too many people get burnt. I deal in real properties getting real rents, try for the double or triple or more incomes on a title where i can, but must be a normal rental and be getting real rents.
To your questions, there are so many different suburbs in AKl, you need to know what you want first of all.
Apartments, yes gone thru a hard time, you just need to make sure you buy well, hundreds or probably thousands of investors paid far too much for apartments over the past 10 years, you can pick up now for $100,000 less in some cases. You still need to know the blocks. An example is I have one under contract now that the investor paid over $220k for it, I can sell to an investor for $127k.
Body Corps etc are high.
There are a few small blocks of flats for sale, which are a good way to go. You need to know what is more important, what yields you want, what discount, whats more important. Other examples, am trying to pick up a place in Otahuhu at the moment, receives $770 a week rent for a $390k purchase. I just have picked up a fantastic cashflow block in Huntly, between Hamilton and Auckland, can sell for $494k and gets at least $1000 a week rent, over a 10.5% Yield, excellent block.
Theres lots out there, you need to know exactly what you want and get someone to assist you over here.
Good luck, more than happy to help.
Mark
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