Originally posted by Wayne
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Mental barrier on borrowing million bucks
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Originally posted by Gary Lin View PostMy latest impression is that CHCH has been a bit flat lately? Rumour has it that recent construction has eaten up all the shortages.
So were you saying that the recovery phase followed the boom they had for the last few years?
I would say it is in a slowing/ falling phase
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Do the maths, all that matters is if the figures work, not the amount borrowed. If the sh*t hits the fan and the market crashes, how far does it have to crash before you are in the "do-do"? If that figure is an acceptable risk, get on with it, you're doing just great so far.
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I believe its a wasted opportunity like Gary said. Better to use the $300k as deposit money and spread your risk.
Also, your 8% doesn't factor in 9 months of no income during construction when you are losing money.Profiting from Property, not People
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It is definitely scary alright. I am looking avenues to build cheap as possible. I am hoping to build bare basics with smaller rooms, more rooms to keep the costs down..
Originally posted by charlotte30 View PostThe scary bit is when you are creating the investment ie by building or renovating and spending a heap of cash with nothing coming in. When it is able to be rented, cash comes in and it is all good again. Focusing on the end game is helpful.
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Originally posted by Beginner1 View PostIt is definitely scary alright. I am looking avenues to build cheap as possible. I am hoping to build bare basics with smaller rooms, more rooms to keep the costs down..
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Originally posted by Beginner1 View PostIt is definitely scary alright. I am looking avenues to build cheap as possible. I am hoping to build bare basics with smaller rooms, more rooms to keep the costs down..
Beware of the Chch effect and make sure the rental situation is based on the normal (ie not based on filling it with tradies etc).
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Building in Hamilton in a prime location with lots of tenants to choose from. Just rented the other property where I am building. This and had tons of tenants to choose from. Surprised my self hence want to build more. The place is lacking quality rental but massive demand from families for nice houses due to school zones.
Originally posted by Wayne View PostHave a talk to a PM to see what is popular or in short supply in the area.
Beware of the Chch effect and make sure the rental situation is based on the normal (ie not based on filling it with tradies etc).
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