2nd Property Purchase Advise

[elguapo]

Well I haven't spent any time looking at H & I so I don't know where to look, but generally South, West & Northshore maybe.

I do spend a lot of time looking for H&I's, I just don't think there is any chance of seeing one sold at positive cashflow in the whole Auckland region. 7% is about as good as it gets. You might see better in the rougher areas like Clendon, but I can't see you hitting cashflow +ve.

[PTILoveYou]

I do spend a lot of time looking for H&I's, I just don't think there is any chance of seeing one sold at positive cashflow in the whole Auckland region. 7% is about as good as it gets. You might see better in the rougher areas like Clendon, but I can't see you hitting cashflow +ve.

Yeah unfortunately that's the way the market behaves, once you are half way through the boom, all the good deals disappear...

[PTILoveYou]

I disagree. You are suggesting that Income = Profit, when actually Income - Expenses = Profit/Loss.

Home and income is a home plus something that generates income. Just because it generates income, doesn't mean it generates profit.

Yeah that's true, that's why it's not called home & profit =)

[Wayne]

Yeah that's true, that's why it's not called home & profit =)

It is good to see you agree your definition of H&I was wrong Gary.

[PTILoveYou]

It is good to see you agree your definition of H&I was wrong Gary.

It wasn't really a definition, just a light hearted joke on the subject of H & I.

[Wayne]

It wasn't really a definition, just a light hearted joke on the subject of H & I.

well that fell flat then.
Jokes don't tell so well in forums.

[PTILoveYou]

It's a forum, don't take it too serious ;-)

[ENP]

There is no such thing as a "capital gain suburb" in Auckland.

There was a study done several years ago and it showed in NZ over the past 60-70 years that capital gains across Auckland suburbs was about even.

For example, if I can't afford to live in Epsom, I'll live in Onehunga. If I can't afford that, then Mangere Bridge, then Manurewa, etc.

So this trickle effect fools people into thinking inner city suburbs have higher capital gain. They don't. They are only the first to increase in value then it trickles out from inner city outwards.

There is no such thing as a capital gain area!

[Anthonyacat]

There is no such thing as a "capital gain suburb" in Auckland.

There was a study done several years ago and it showed in NZ over the past 60-70 years that capital gains across Auckland suburbs was about even.

Link or reference to the study? Know who ran it, when? Looks interesting. I'd be especially interested in the results since 1980, see if they are different to before then.

[ENP]

http://www.propertytalk.com/forum/showthread.php?15010-History-of-House-Prices-in-New-Zealand/page2&highlight=capital+growth+myth

[mortgage broker]

Hamilton is starting to look good in terms of cash flow and future potential.

[BigDreamer]

Hamilton is starting to look good in terms of cash flow and future potential.

Rents are still so low in Hamilton. I haven't seen them increase in a while.

[Wayne]

Rents are still so low in Hamilton. I haven't seen them increase in a while.

When I asked my PM how she could quote $400pw for a 3brm in Ellicott Rd she said rents were racing up lately.
Quote Rents are really moving at the moment and not a lot of new 3 bedroom quality townhouses available