NZ Invest

[Gareth]

Hello there.
First time caller here.

I have my first home, with some good equity and am wanting to get into my first rental investment. What I have quickly learnt is that there are a huge range of options!!

I have spoken to NZ Invest, which seems very good on the face of it...two questions:
1. Has anyone dealt with NZ Invest, any advice/thoughts?
2. More importantly ...Any thoughts from you experienced people out there where to start in this game? I have briefly read the newbies forum which was great.

Thank you
Gareth

[fudosan]

Welcome to the forum, Gareth.

I suggest the following:
1. Determine your investing rules.
2. Choose an area or two, maybe where you live, to focus.
2. Study the house prices and rents in the chosen areas.
3. Find properties that meet your rules.

Another important thing you can do:
4. Study posts on the forums and ask questions.

[AustinWong]

Gareth

2. Choose an area or two, maybe where you live, to focus.

I though previous postings would suggest it would be better to purchase outside of the area you live, though not too far away.

Though I know Graeme Fowler, froom previous posts, does buy in his own patch.

L

[kolzee]

Personally i don't think the message is to invest or not invest where you live.

The key is to understand the area that you invest and if the only area you understand is where you live then this is probably the best place for you to invest.

Of course the more effective way of getting around this is to expand the number of areas you 'understand' then invest in the one you see as being most suitable.

It can be done crudely quite easily by looking at the rentals in the paper and matching to house prices. Council websites are also good for understanding developments/projects.

Sorry, know nothing about NZ Invest so can't help there.

[Greengrass]

First Investment

Go to www.merlot.co.nz and have a look at what they offer, very appealing to first timers and experienced investors alike.

[lissie]

Re: First Investment

Go to www.merlot.co.nz and have a look at what they offer, very appealing to first timers and experienced investors alike.

Hmmm - I know nothing about them but I would be wary of the one stop shop approach . I would want at a very minimum my lawyer and my valuer involved. Their professionals havea motivation to be on the right side of "merlot" rather than you. I'm not saying its dodgy - just make sure you seek independent advice.

Also any investment works much better if you understand the risks/benefits and how that fits with your individual circumstance - the best person to know that is you- read a lot and become informed so if you go with a one stop shop you know what you are getting into. For example aI believe from valuers that new build homes tend to stay still or drop in value for the 1st few years relative to existing homes in the same area ...

[Marcus]

Hi Gareth

Why are you wanting to buy investment properties?

I though previous postings would suggest it would be better to purchase outside of the area you live, though not too far away.

Ok, please explain.

Regards,
Marcus

[Monid]

Also Merlot keep emphasising the tax advantages of property ownership, always a worrying sign.

Especially when they say that interest rates may go up, but look on the bright side you will save more taxes!

[Gareth]

Thanks everyone for your feedback.

I have contacted Merlot and must say they were very helpful. Might not be the right way to go but if there is one thing I have learned so far, it is not to rush in.

The reason I want to get into property is to utilisie the equity in our home. The way I see it, it is just sitting there doing nothing.

I would prefer to buy local I suppose as I know the area, but Auckland is okay.

Any more help would be great.

Time to study I think!

Gareth

[Guest]

I'd be careful about Merlot.

[Greengrass]

As I am thinking about entering into a contract with Merlot I would be interested to know if "mars" can qualify the statement "I'd be careful about Merlot." as this is rather vague and sounds like the sort of thing one of their competitors might put in.

[Josko]

As I am thinking about entering into a contract with Merlot I would be interested to know if "mars" can qualify the statement "I'd be careful about Merlot." as this is rather vague and sounds like the sort of thing one of their competitors might put in.

Fair point greengrass, we should be careful about saying be careful, without detail as to why the warning.

[cat]

Consider the role the company are playing...

Are you happy that your advisers are also the selling the properties?
Are they offering you a range of classes of property (houses, apartments, units) and both new and second hand?
How do they respond if you take one part of their package and give it to someone else, say the accountant, or the real estate agent?

I know nothing about either company but the ads for NZ Invest sail very close to advertising standards breaches. Oh yeah, sign up now and they'll donate to the Tsunami appeals. Well aren't they just the greatest guys.

[Josko]

It is a worrying sign in the cycle (not that it matters) when the radio is announcing things like:

"Yes 1,000.00 down, and you could invest in a income producing...."
"Guaranteed rent for 10 years..."
"Rent with us and all you rent becomes the deposit in three years time..."
"$50.00 a week and the equity in your home can own you an apartment in..."

[Guest]

I am not a competitor but have been aware of this group for several years and have observed several transactions. I am also aware of the Principals involvement in various Projects, one of them in the Hamilton area which went particulary badly for investors. I hold a position which enables me access to information which I doubt many of you could see. However I think the generous nature of the people who contribute here means I should drop a hint that you should be careful rather than sit back and say nothing. Bear in mind I have to be careful about what I say also.