DAMAP, you did know this thread IS about interest rates ?
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Originally posted by Damap View PostHaha. I agree. I have bought over a hundred homes now in Auckland and I have so far bought one do up for a PPOR and zero do ups for myself or clients as investments. I just could never see the point. Better to find a discounted deal on a property someone else has spent the money on.
With the house I just bought for 640k, should I just spend 5k in cost and sell for 755k and make 100k.
Or should I reno and have a great auction and make 150k, or maybe I make 125k, or maybe that will only end up being 100k.
Then their is the view, that if I make the quick 100k now and settle fast enough, I can actually do another deal in the time it takes the reno to be completed.
Which is looking around 5 weeks.
BUT.
Maybe if I don't reno and stage and make it look fantastic, and maximum the great bargain I have, with a paint explosion, maybe I will only make 50k.
And lose out on making 125k.
Mix and match them me thinks.
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Originally posted by Bluekiwi View PostThis is a concept I am getting to grips with right now actually.
With the house I just bought for 640k, should I just spend 5k in cost and sell for 755k and make 100k.
Or should I reno and have a great auction and make 150k, or maybe I make 125k, or maybe that will only end up being 100k.
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Malcolm was just starting out when I was leaving the NZ market so i don't really know him. You really should know whether it is 50 or a hundred K before you buy though it shouldn't be an unknown.
You should know pretty accurately what your high and low end on sell is. I am guessing you mean you know it will sell for 700 but might sell for 755 as is.
At the end of the day though it comes down to what sort of flipper you want to be. I always worked on 50K minimum and don't want to hold stock and run reno risk which always has unknowns. So I would take 50K and leave a hundred in and go and do 2 more deals. But if you are cash rich then sure buy it and doll it up. You'll soon get a feel for which you prefer.
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Federal Reserve (usa) officials have signaled that they will probably raise interest rates in December, which would mark an end to seven years of near-zero borrowing costs.
Last month, officials said they needed more confidence that faster inflation was in train, especially since the central bank has missed its 2 percent target for more than three years.
http://www.nzherald.co.nz/personal-f...ectid=11554018have you defeated them?
your demons
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Originally posted by AlFa View PostThat's a great deal Paul. What sort of property is this?
I have sold it now, spent 5k cleaning it up and sold it last night for 725k making 80k with settlement 23/12.
Now I have to start looking for another one to buy.
Looks like DAMAP was right.
And I can now fit another fast trade in over the time I would have been renovating and selling this one.
I guess I had a bit of luck selling it within a week of buying it.
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Back on to rates.
This is a good reason of why OCR wont go up much for a long time.
And why it could be safer to stay in the short term pool when longer term (US driven) rates, finally ? start to edge up.
So "Longer in the short term" ?
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All this talk of the 'time' spent chasing interest rather than just set and forget makes it sound like the 'chasing' brigade spend every waking hour doing so.
It doesn't have to be that way.
Managing my biggest company cost (interest) and my biggest personal 'cost' (time) aren't mutually exclusive.
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