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  • Auckland City Apartment

    Hi All!!!!

    This is my first time on this forum and also this is my first post. So, if i miss lead in any matter please correct me thanks.

    I wanted to ask should I invest in Auckland City Apartment or not? I'm only a student and i don't earn much and I'm planning to take a home loan. But looking at the current housing market there is a lot of supply but less in demand. At the moment, the Apartment in the City look cheap but a lot of people I know loss a lot of money in Apartment in past years. And my aim is increase my assest overtime and increase the cash flow, buying land or house is out of my reach at this stage. I was thinking taking out a loan and buy a apartment that is good quality and high return where I'm going to rent it out to cover the loan. Of which I will add more money over time so I can repay faster. But is it the right time to buy an apartment and if so what type of apartment should I pay and where and what do I need to look for? If not what property that is cheap I should invest on? Or Why shouldn't I buy apartment now?

    Many thanks people.

  • #2
    May be now is the time to buy

    From my long distance reading, the original buyers now have taken the loss for you and buying now may well be a good bet................but do you homework! What is a one bedroom closet really worth.........? I moved to Europe in 2000.........I saw a little of apartment living and can say it really has its downsides......noise, restrictions and lack of privacy. Here in Vienna no one buys an apartment smaller than 90 sqm and the average is 140-160sqm.
    Small apartments are bought but only when the purchaser can buy two adjoining apartments and can then join them togeather ( can make a tidy profit).
    Small apartments are for singles and students.........that means you will have shorter term tenancies and high risk of periods without an income. I larger apartment will start to cost as much or more than a house.

    With the market future in doubt I would suggest you be quick to look and research and really take your time over a commitment. Start a regular investment programme aiming at 5-10% in Bullion 30-40% in equities and the remainder in monthly bonds with a bank. Don't go for 100% finance and really think carefully about 80% finance...... 60-75% finance should be the aim when your starting out. Also if the bank won't lend to you thank them and don't go anywhere else as the bank will have told you your plans are just too risky.
    Note that Interest rates are going to stay high and prices are not going to move up with the same velocity they have in the past. If you really want to invest now look at a house in Dunedin, or Palmerston North.

    Only once you have established a safe investment base ( that you can legally protect from potential creditors) should you look at the risky forms of investment!

    With bullion go for bars and be prepared to see the price drop in the first quarter of 2008 ( generally it drops in the first quarter .....and increases in the fourth quarter). Remember the Bullion is an insurance policy(wealth protection not creation) not an investment so any loss could be regarded as insurance.

    The equities are for high returns and the Bank deposits for safety!
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

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    • #3
      Austrokiwi is right, these are really small boxes -- but what do people think about the idea of buying two or three adjoining apartments, knocking the walls down, and making one large apartment?
      Erewhon is still erehwon, I don’t see it changing anytime soon.

      http://exnzpat.blogspot.com/

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      • #4
        Thanks for advice Austrokiwi, but you said that average 140-160 sqm. In NZ at the moment the largest on the market is around 50 sqm ($220,000) and normally is only 35 sqm ($160,000). So, are you only referring oversea apartment.

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        • #5
          If it's in the Auckland CBD forget it jhui unless it has sea views that can't be built out, 2 car parks and is at least 80 plus squares.
          Buy a unit instead and rent that out. The apartmenmt market has at least another 12 months of pain to go yet, maybe 2 years.

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