Gangster Areas of Papakura - who has a good knowledge ?

[Bluekiwi]

How about Sheeham, I guess this street is pretty close or in these troubled area's.

I could potentially be looking at a 3BR + garage on full site for 150k to 160k.

Rather than do a hold, if the price is right after my DD, maybe a few K on cleaning and paint, could provide a quick flip opportunity up to 180 - 185k.

Seems more liquidity in the market from Feb, the old cosmetic do-up and sell tactic might be on the cards again (Quick 10 day do-up)

[Dean@Massiveaction]

Sheehan is roughish. For that sort of money you couldn't go wrong though. Rent it out till things recover, budget on 3 to 5k a year on damage repairs :-)

[alhoon]

Quick question for you Dean - if you are spending 5k a year on damage repairs, is it the fault of the area or your property manager?

[Dean@Massiveaction]

I'm just making sure mechatronic is conservative with his numbers. I find on average across 50 properties I have that we average 3K per annum on R&M. Some properties cots us nothing but then you'll have a reroof or a broken watermain or whatever somewhere else.

[whitt]

The R&M figures are discussed in detail on these forums in posts a few years ago.
General summary was you need to budget these high figures eg 3-5k etc.

Some years the costs may be lower but as Dean suggests the bills will eventually come and average out over the years.

Paint every XX years 6,7,8K
Rerooof 15-20K
Hot water cylinder $1500
Carpet every XX years 5K

If you budget for it when doing the numbers anything less is a bonus.

[mechatronic]

Thanks for the advice guys, i had budgeted on $3000 a year on R&M, after putting in $5000 it ends up negetive cashflow.

Im getting a building inspection done today, i'll see if i can use some faults or comments to negotiate the price down further.

Im still finding a bit of difficulty locating a positive cashflow property with yeilds of 9 - 10%, i have searched for home in and incomes and found some. but im only prepared to pay under 250k.

How about you dean, what kind of yeilds are you finding with stand alone houses in reasonable streets without doing room by room?

Cheers

Mech

[Bluekiwi]

Is having a rental in a flood zone a bad thing, all it means is your capital growth is not quite as good, unless they fix the issue it in the next 10 to 20 years.

And every flood you get a free reno ?

[Keithw]

I would think insurance would become a issue, & you could be up for hassles from the tenants after each flood, trying to get compensation for damage to their goods.

You may also be up for the compulsory costs of raising the house if that's what the council or earthquake lot decide must happen.
In practice, all "government funded" compulsory actions always end up costing you something.

[Dean@Massiveaction]

Mech, minimum 8.5% currently. Some stuff well over 10

[bling]

Be careful in the rosehill area there are some not to pleasant streets in there and a high number of HNZ.
As with anywhere take a look around you will soon see if the street is a problem or not. I always try to look at investment properties after 3pm. It is often not the quite little street it appeared to be at 10am.

[eri]

settlement road at 8pm a no go area? basically central papakura...

A man's wrists were repeatedly slashed with a metal object in South Auckland yesterday after refusing to hand over his iPhone.

http://www.stuff.co.nz/national/crime/7999428/Mans-wrists-slashed-for-iPhone

[Glizzle]

He was then asked if he had a phone and after showing the man his iPhone 5 was told to hand it over.

Epic, pure Epic.

[eri]

you want epic?

[Ivan McIntosh]

Is having a rental in a flood zone a bad thing, all it means is your capital growth is not quite as good, unless they fix the issue it in the next 10 to 20 years.

And every flood you get a free reno ?

As keith said, the insurance company will soon slap a flood excess on you that exceeds the amount they expect you to claim on average. Make two claims and they'll sit up and take notice....and if you try to shift insurer you have to disclose the two claims or risk losing cover when there is a another flood.

Edit: Well done me for responding to a three year old thread

[Bluekiwi]

As keith said, the insurance company will soon slap a flood excess on you that exceeds the amount they expect you to claim on average. Make two claims and they'll sit up and take notice....and if you try to shift insurer you have to disclose the two claims or risk losing cover when there is a another flood.

Edit: Well done me for responding to a three year old thread

Nice work, after all this time, and funny enough I was just out there early this week looking at a property.