Motivational Hot Deals

[drelly]

I thought that this would be a good time to encourage us all with recent great buys. Here's one that a friend of mine recently bought in a private deal. His first house!

3 bed house close to city centre with a sleepout. In good condition.

Purchase price: $150k
Market Value: approx $250k

Has anyone else heard of any good buys? It IS possible!

[mariner31]

I cant beat that but I got cashflow positive on a 3 bedroom house on full section, huge double garage. $166K Papakura.

[Dean@Massiveaction]

Bought yesterday in Glendowie multiple income stream property. 371K income of 37500 PA. Awaiting valuation

[Kiwi_Investor]

I have just completed building a Duplex on the Gold Coast.
I know it's not NZ.

Purchase price 500k, including costs.
Independant Valuation $320-325k each, $150k approx equity in 10 months.

KI

[Josko]

Purchased an apartment for 210k in February 2005.

Similar ones now on sale for 240k.

[essence]

Bought 2 single storey (3 bdrm each) unit in Porirua in October 04 for $146K. Am in the process of subdividing ($12-15K). Thank god for intertenancy walls!

When revalued should be about $100-120K each. Have repainted inside one unit and plan to repaint other.

Purchase 10/04 $146K
Cost of subd $12-15K
Revaluation $100-120K each (conservative)
Equity gained $39-79K in 7 months.

Not bad for a beginner eh!

[fudosan]

Hi essence,

Am in the process of subdividing ($12-15K). Thank god for intertenancy walls!

Can you tell us how you are going to subdivide them? Just separate titles? Will there be any structural work involved?

[Julian]

Hey Dave,

Buying $100k below valuation deserves a bit of an explanation. How did he or she do it? What was the deal? How did it go? How long did it take to put together? How did he/she find it? What area was it? Was it multiple tenancies? Why did the owner part with it so cheaply? etc etc

Cheers, Julian

[Baywatcher]

Private deal in Glenhome Rotorua on Wednesday. No maintance for 30 years. Walked in off the street
Paid 180k
Do up 20k
Sell 250k plus in a few months

[kickingbird]

hey good call on the hot deals section. I picked up a place last year for a deal. asking over $260 got it for $190 nice 4bed on the river in Marlborough. ( the couple were seperating )

[fudosan]

Welcome to the forum, kickingbird

Well done! How did you find the deal? How did you negotiate the price down? What made them accept this low price?

[drelly]

Hey Julian... I'll investigate further!

I was too busy banging my head against the steering wheel to ask questions when he told me...

[essence]

Hi Fudosan

Can you tell us how you are going to subdivide them? Just separate titles? Will there be any structural work involved?

It is a "paper" subdivision, in that they can both go on to their separate titles and be either rented separately or sold separately or a combination of that.

There is an existing hedge between the back section, which I will pull down and replace but there is no structural work involved AT ALL!!! *big grin*.

There must be separate entry/exit for both properties (most properties have this anyway).

There are special conditions involved with the intertenancy wall (search on the internet to find out what it is - i don't want to give too much away to other landlords!), and it is up to the discretion of the local Council whether they will permit it.

I am definitely looking to finding more properties like this locally. I have also discovered a 1014m2 section with a two bedroom dwelling at the back of the section. There is a glitch in that the older house is 1.5m from the side boundary and exemption will be needed from the Council and permission from the neighbours before I can subdivide. As it is an existing dwelling this shouldn't be a problem. I then plan to build a 3bdrm dwelling on the front. Depending on the figures, I'm not sure whether to buy/hold/re-finance or buy/sell.

The owners don't know that this property is for sale YET! That is my next project when the subdivision goes through. I'm just going to knock on the door and see what happens. If one doesn't try, one will never know.

The knowledge I have gained by going through the theoretical subdivision of the 1014m2 property has been immense and I feel really confident that within a six months that I will do this. Either on this property or another one. It won't be a problem, as they are out there all the time.

I should be able to clear approx $200K in equity this year with these two projects alone.

Baby, I'm just starting!!! Heh, heh, heh.

[Julian]

Baywatcher,
How about me shouting you a coffee for finding that great deal. I've sent you a PM with my phone number.

Dave,
Watch that banging the steering wheel - don't want to set the airbag off! Great post!

Julian

[Kimberly]

Hi Essence,

Ive been thinking of buying a rental property in Porirua East lately myself. Its the only area I can find to buy without having to negative gear
I would love to hear more about your endeavours in this area