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More on Propellor's charging structure and history here: http://www.nbr.co.nz/article/new-fre...company-102087
How long is a piece of string ? It depends on what string. Auckland is a large place and quality, demand and buildings vary massively. Even in the CBD you have leaky apartment buildings and good ones.
Originally Posted by elliot
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 at 01:57 PM.
the rental guarentee is usually built into the purchase price, so I'd be looking to see what I could buy for $35-$40k less, and do some sums on what that might return.
Originally Posted by Contrail
He who laughs last......is the slowest thinker.
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.
Normal sections in Hamilton are around $225k and to fit the two houses the sections might be bigger, so more expensive.
Originally Posted by Craig Pope Mortgages
To build a 4 bedroom and 2 bedroom for $595k, ie around $375k sounds difficult. In my opinion you would struggle to match this price if you tried to do it yourself. Normal 4 bedroom house would cost around $300k, so $375k isn't too much more. In Hamilton i find that you can buy a new house for less than you could build it, plus the specs are probably better!
Rototuna is generally good, but watch lots of salespeople describe areas wrongly.
The rent does sound a little high. Maybe $450 for 4 bedroom, so leaves $320 for 2 bedroom. Actually, brand new 2 bedroom in good area is probably around $300 or slighly more.
I have had no dealings with Propellor.
Ross Barnett, Coombe Smith Property Accountants - Hamilton
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I've got to say that I have found the Properllor Property Team very good to deal with. Sure you can probably hunt around and save some money building yourself and cutting them out of the deal etc but for investors who are new to property investing and work fulltime in corportate jobs and don't have time to learn everything there is to know about the industry they are a pretty good way to go. Deals aside I didn't find them pushy and always returned phone calls within 15 minutes. This is my experiece and until I know exactly what I'm doing I'll probably continue to use them.
Fair enough, In auckland you would be struggling to find land so buying turn key packages may be one of the options, but Hamilton may be a diffrent cattle of fish. I laways looked at it this way ,if its cheaper to buy than build buy as a a package unless you are building to live in it with better specs.
Originally Posted by Auckland Newby
How times have changed -- wind back the clock back 10 yrs , 700m2 sections in Hamilton were just selling for $65K and new holmes built for $230K with land!
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