I see on the propeller property website they are selling new build properties off the plan in flagstaff Hamilton.They consist of a 4bdrm 2bathroom house and a 2bdrm 1 bathroom unit all on a 700sqm piece of land at $595000 with a total return on both properties of $770.Has anyone had any dealings with this company?Seems like a reasonable return for a new build and maybe too good to be true?
Announcement
Collapse
No announcement yet.
Propeller property investment
Collapse
X
-
Ask yourself one question.
Do they guarantee rent?
If so, don't go there.
-
Originally posted by dongiblin View PostI see on the propeller property website they are selling new build properties off the plan in flagstaff Hamilton.They consist of a 4bdrm 2bathroom house and a 2bdrm 1 bathroom unit all on a 700sqm piece of land at $595000 with a total return on both properties of $770.Has anyone had any dealings with this company?Seems like a reasonable return for a new build and maybe too good to be true?
My questions would be what exactly is included in the $595k package?
You wouldn't want any surprise "extras" such as driveway, landscaping etc, as the yield is already tight.
Shane
Comment
-
Originally posted by dongiblin View PostFrom their website it says they are turn key investment properties fully landscaped and also the 4 berm house has a double garage internal access and the 2bdrm unit a single internal access garage.Must be too good to be true what am I missing?
Investor Homes specializes in the type of build package you are talking about.
Shane
Comment
-
Nikki Connors is the promoter I believe. She is a discharged bankrupt. When I dealt with her she was only interested in slamming deals, not interested in the client. I stear clients away from her now, our firm knew her when she was Catalyst Property . I bet you could go to the developer directly and get a big discount dealing direct. She is a middle man selling negatively geared property in a low growth economy. Just dumb business if you ask me. What happens when rates go up? The market softens, low growth and negative cash flow.
Put your money in Auckland and look for net yields above 7%. They are there.
Comment
-
Hi Dongiblin, you see it written quite often that you make your money when you buy a property. So if you buy off (or via) a property investment company they would be making a cut so in my opinion you pay a premium for someone else to do the work. This is fine if you are busy and don't have time to find a section and build yourself. You may do it cheaper if you had sourced the section and managed the build yourself?
I would recommend getting your own valuer to look at it though.Craig PopeCraig Pope Mortgages & Insurance
www.craigpope.co.nz
Comment
-
Originally posted by Craig Pope Mortgages View PostHi Dongiblin, you see it written quite often that you make your money when you buy a property. So if you buy off (or via) a property investment company they would be making a cut so in my opinion you pay a premium for someone else to do the work. This is fine if you are busy and don't have time to find a section and build yourself. You may do it cheaper if you had sourced the section and managed the build yourself?
I would recommend getting your own valuer to look at it though.
Comment
-
More on Propellor's charging structure and history here: http://www.nbr.co.nz/article/new-fre...company-102087DFTBA
Comment
-
Originally posted by elliot View PostMatt do you apartments in auckland to get a net 7% yield. I think the same. Just rerenting 2 properties in rotorua top area and surprised at the lack of interest. Certainly need to look at higher growth areas but auckland prices have now bolted.
I think apartments are a cashflow play in Auckland, yet at time of writing this they have inflated to their former peak value making their cashflow relatively poor and the capital growth prospect low. However there are sometimes bargains around, they are just a bit thin on the ground in Auckland if you are a bargain hunter at present.
Get in touch with grant Hoey at Proeprty Tutors. The guy owns 30+ apartments and is a central AK apartment guru. Ive purchased a couple of apartments during the recession for around $100k ( with net yields of 12%) and I rang him when I was doing it. He seems to know every building and the leaky ones....you need to watch CBD apartments for leaking.
Also as a rule I prefer to buy assets with land, - for the capital growth. You can get net yields in this market in South Auckland of 7-8%. In my view these properties will get similar cashlow to Apartments but better capital growth. The time to buy apartments is in the middle of a proeprty crash, not a boom. They are very volitile in value...timing is difficult right now unless you really know what your doing and you are deep in the market. talk to Hoey....Last edited by Matt Gilligan; 12-08-2012, 01:57 PM.
Comment
-
Originally posted by dongiblin View PostThey guarantee rent until it gets tenanted.The rental prices seem realistic and the location seems relatively good.Has anyone had any bad experiences with them in the past?
I bet whatever tenant they get will be paying a lot less than the guaranteed amount
Comment
-
Originally posted by Contrail View PostI bet whatever tenant they get will be paying a lot less than the guaranteed amountRegards Roberto
He who laughs last......is the slowest thinker.
Comment
-
You probably want to check the area, Hamilton is very different to Auckland in that you drive for 10 minutes and be in an area with lifestyle blocks.Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
My Website
Be informed - register for our free monthly newsletter
Comment
Comment