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Brain Gym - what might you do?

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  • Brain Gym - what might you do?

    Hi all,

    I'm a firm believer in exercising the brain. After reading some other threads, I often wonder "What would I do in this situation?" and "What would I do in this situation if..."

    I wondered what some of you would do in my situation for property investing. I don't mind sharing my details online (I know others would be), and I know the more detail, the better the ideas can be.... so here's my rough situation. Go wild with your suggestions on what you'd do if you were me; they might open up a few more ideas for me, or for someone else whose position might be similar to mine. I can handle spam, etc, and that would be a small downside for the upside of alternative ideas from people here.

    Andrew & wife, 30's, no kids
    Current location: Taiwan *
    Current joint income (in NZ dollars): ~$65,000 p.a. after tax
    Current saving ability: ~$30,000 p.a.
    Cash on hand: $50,000 < X < $100,000
    Property owned: none (anywhere)
    Other holdings: shares, funds, super, etc, at a comfortable level
    Risk profile: Overall level moderate-conservative, can vary by situation
    Personalities: numbers-oriented, looking to the long-term before the short-term

    Edit: additional info for clarity's sake:
    - Our living situation is unique. "Renting" is a given and is included in the costs above. There are non-financial reasons for this. (see below)
    - Only looking at buying property in NZ, not anywhere else
    - As we are overseas, using a property manager is a given


    * hence the relatively low total income, and relatively low spending too, as the exchange rate is very poor currently

    Suggestions of "move to another country to make more income" will be ignored for now as we've got non-financial reasons for being here.

    For the spammers/people with a book/course/offer - I'm just going to ignore you, so don't even bother.

    Cheers
    Andrew
    Last edited by atiff; 26-12-2007, 04:46 AM.
    Cheers,
    Andrew

  • #2
    Hello Andrew,

    I don't live in Taiwan nor do I know anything about the Taiwanese property market so I don't think I can help.

    xris

    Comment


    • #3
      Hi Atiff,
      I assume you're wanting to buy a NZ investment property while living in Taiwan?
      In which case you'll need a good property manager.
      There's one very good property manager who lives in Nelson.
      Why not talk to him? Maybe you could buy in Nelson and get him to manage it for you.

      Comment


      • #4
        Hi Andrew
        How long do you intend to stay in Taiwan? If you are planning to be there 5+ years I'd contemplate buying a house to live in at least, in the long run it is usually cheaper than renting.

        I wouldn't suggest moving from Taiwan myself, you are saving half your income which is very good.

        A reasonably conservative move would be to buy one investment property somewhere you can expect long term capital growth (Auckland for example or one of the larger towns in NZ or elsewhere) put down a $80000 deposit and devote as much as possible to paying it down as quickly as you can at least to the point where it is cashflow positive, preferably beyond this. Once this property is cashflow positive look at purchasing another using the equity in the first. Keep sinking the majority of your savings into paying down your properties, using the cashflow generated to further pay down your properties creating a snowball effect.

        Thats what I would do, actually thats what we are doing.

        Cheers
        David
        New to property investing? See: Best PropertyTalk Threads for New and Old Investors And/Or:Propertytalk Wiki

        Comment


        • #5
          Hi,

          Sorry, further explanation required, it appears.

          Our living situation is unique. We live with the wife's parents (in true Taiwanese fashion) and we do pay "rent" to them, but would be paying it even if we didn't live with them (as there is no retirement income in Taiwan and we are basically providing them with living costs). So however you want to think about it, our living situation is fixed.

          Also, I'm only talking about buying property in NZ, not anywhere else. Actually, we've looked at buying in Taiwan, but my Chinese isn't that good, and my wife doesn't have the time to play translator.

          A property manager is a given - we'll need one and are fully prepared for that (hence my other post about PMs).

          (I'll edit these into the original post for clarity's sake)

          Monid's suggestion is pretty much exactly what we have planned to do thus far. But any other suggestions welcome.

          Cheers
          Andrew
          Cheers,
          Andrew

          Comment


          • #6
            Originally posted by tricky View Post
            Hi Atiff,
            There's one very good property manager who lives in Nelson.
            Why not talk to him? Maybe you could buy in Nelson and get him to manage it for you.
            Glenn (I assume?) sounds like he's having enough fun already....

            Andrew
            Cheers,
            Andrew

            Comment


            • #7
              As part of your long term plan look for properties that have the potential to add a minor dwelling. This increases value and rental income.
              Charlotte 30

              Comment


              • #8
                Luxury! Absolute Luxury!
                Why when I started investing we lived in a lake and ate cold gravel...

                What part of NZ do you know well?
                Do you have relatives or someone reliable in that area who could check
                on a property for you?

                Do you want the joys of buy, hold, pray and deal with tenants?
                Or build a deposit using trading - it might be a bit difficult.

                Property managers are notoriously awful - especially if you can't physically go around and apply the size ten to their posterior!
                The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

                Comment


                • #9
                  Very good place to buy!

                  http://www.stuff.co.nz/auckland/4283199a22695.html

                  http://www.propertytalk.com/forum/sh...ht=helensville

                  Comment


                  • #10
                    Hi Andrew,

                    Seeing you are in Taiwan, you may like to visit trademe, www.realestate.co.nz, www.streetvalue.co.nz, www.terranet.co.nz and www.qv.co.nz to help you to gather information about properties.

                    I don't know which town you are from, but having a relative/friend on the ground certainly helps as well, to do physical site inspections for you. Getting hold of a good agent, and letting the agent know of your circumstances may alert the agent of good deals that may suit you.

                    Another thing you may need to consider is the financing side - which banks will provide this for you. I think there have been some threads on this site concerning ex-pats obtaining finance. Get this organised as soon as you can so that you know where you stand well in advance.

                    All the best.

                    Comment


                    • #11
                      Originally posted by charlotte30 View Post
                      As part of your long term plan look for properties that have the potential to add a minor dwelling. This increases value and rental income.
                      Nice tip - thanks
                      Andrew
                      Cheers,
                      Andrew

                      Comment


                      • #12
                        Originally posted by learner View Post
                        Hi Andrew,
                        Seeing you are in Taiwan, you may like to visit trademe, (etc), to help you to gather information about properties.
                        Thanks - yes, I look at these regularly. Anyone know what's up with StreetValue's supply of sales data? Those pages are down at the moment.

                        I don't know which town you are from, but having a relative/friend on the ground certainly helps as well, to do physical site inspections for you. Getting hold of a good agent, and letting the agent know of your circumstances may alert the agent of good deals that may suit you.
                        One thing I've had to get my head around is the idea of not being able to see the places I'd be making an offer on. Emotionally, that's now not a problem for me, and it's an interesting exercise working out how to go about it in the best practical way. So far, it's been a case of looking at as much information from multiple sources as possible (eg, finding out everything possible about an area, and comparing prices within that area, and then specific properties) - anything out of line with the norm should indicate something exceptional (an exceptional opportunity or an exceptional lemon). I've been paying close attention to wording of listings too, as I think what people say (or don't say) and how they say it can give you a head-start on a property.

                        Another approach I'm setting up is selecting several properties within the same area (same street in some cases) and asking someone (friend or relatively neutral professional) to compare and contrast them on a factual level. Hope to do more of that in the next few months with friends or others I know.

                        Another thing you may need to consider is the financing side...
                        Yes, did this as one of the first things I organized. Some of the banks are willing to lend to ex-pats, under different LVR criteria (usually 80% max it seems). Through discussions with reps over email, I have an indication of amounts that we could loan from two banks already - it's interesting comparing their approaches to it.

                        Thanks for the comments, all.
                        Andrew
                        Cheers,
                        Andrew

                        Comment


                        • #13
                          Hi Andrew

                          You can also look at www.helpsellmyproperty.co.nz

                          It is Harcourts site and you have to register but it gives house prices up to 6 mths back.

                          Regards
                          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

                          Comment


                          • #14
                            My 2 cents worth

                            Hi Andrew,

                            If I was living in Taiwan, I would concentrate on buying a property (or a portfolio of properties) in Taiwan.

                            After all, the economic prospects in Taiwan may well be better than those of New Zealand over the next few decades. Also, the New Zealand property market simply looks overvalued at the moment, in my humble opinion.

                            Good Luck & Merry Christmas,
                            *poormastery*

                            Comment


                            • #15
                              Ah, but what might happen if China subsumes Taiwan? Or if the neighbouring Chinese juggernaut goes off the rails? It sounds as if Andrew doesn't speak the local language fluently - so there could be cultural difficulties as well.
                              New Zealand would be a lower risk proposition, I would imagine.

                              My thoughts would be to buy in a quality area, where your chance of tenant problems reduce. It doesn't sound like you have the resources to get into quality commercial at this point.

                              Julian
                              Gimme $20k. You will receive some well packaged generic advice that will put you on the road to riches beyond your wildest dreams ...yeah right!

                              Comment

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