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“Serious” investors nosing back into property market

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  • #16
    k1w1, I am astounded that I can't find those deals either. I no the West Auckland market very well and those are not market rents for average 3,4 or 5 beddies. I have found nothing out West that offers much over 6% on a good brick and tile standalone. Went to an auction at Barfoots two weeks ago. 210 sqm house , great fit out but with water tightness issues sold for $480k after vigorous bidding. This was in the Oaks in Albany. So much for bargins that are cash flow neutral. I have seen a couple that would go close in Clendon but you have to get the rent first.

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    • #17
      Originally posted by k1w1 View Post
      No, I'm genuinely interested. There are no deals that I can find like that online, for one.

      I hear this often on this forum - "you have to look for them". Where?

      You could get defensive, or you could help me out and tell me how/where they're found.

      So what suburb are they in? If you don't want to tell me that, tell me what part of Auckland - north, east, west, south, central?

      I'm not missing your point. You're saying their common. I'm saying they're not, but I'm open for correction. Prove me wrong.
      They are lease options, the amount above the normal market rent is the lease-to-buy portion or whatever you care to call it

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      • #18
        Oh I see. I see smoke & mirrors from the expert (not you, Orbital).

        If that's right, it's a little insincere to suggest these deals are everywhere inferring that they are "regular" rental properties for your Joe-average part time PI, poooooooomba.

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        • #19
          Ha!

          Orbital makes sense!

          I think you are right.
          two ears and just one mouth.. for good reason.

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          • #20
            But I'm still interested in how you source/find them. Or are you such a big fish that the deals come to you via your RE friends?

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            • #21
              ""Bargains are found at the negotiated price" Roy Fong.

              He also said you need "To hit the ball rolling" but thats besides the point.

              The point is "You dont find bargains looking through the pages of the property press" Roy.

              Dean probably has a full funnel of low offers (see I listened to his DVD).

              The problems for me are:

              1. Servicing cash-flow nuetral props (the banks perspective)
              2. Falling rents as everyone who couldnt sell before they went to Ausie are renting their houses out

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              • #22
                Originally posted by pooomba View Post
                Interest rates trending down, dollar down, building consents down, selling property below replacement. It's hard to see how the recovery can't be anything but breath taking, (unless Labour get back in that is, then we are all off to live in Oz).
                The reserve bank may lower interest rates, but banks are going to keep their rates up, as it is expensive for them to borrow overseas in todays climate. The NZ dollar is linked to the reserve bank interest rate, and it makes little difference to local property prices. Currently there hasn't been a crash, so there is nothing to receover from. However rising unemployment, rising cost of living, baby boomers cashing in their houses for retirement, as well as the fact that it NZ house prices are the most unaffordable in the world all points to a crash . One reason building consents are down, is becuase funding from finance companies have disappeared, so there is little funding for developers, although I am not sure if this is going to make a difference to NZ house prices, unless we have a lot more people entering the country. Currently we are losing a lot of people to Oz, many who cashed up when prices were high.

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                • #23
                  Originally posted by robbyp
                  Bernard Hickey doesn't see property reaching 2007 levels for another 10 years, which doesn't look good for property investment
                  Is Bernard an experienced property investor?

                  Originally posted by robbyp. View Post
                  I can't see how recovery could be rapid in todays market, and I think we are years away from the true bottom of the property crash. With any boom you will always get a crash.
                  Not always true. A boom can move to a flat period.
                  A crash will always result in a boom. Note the difference.

                  Originally posted by robbyp. View Post
                  The NZ economy is in a poor state, and with raising unemployment, more people defaulting on their mortgages, finance companies folding,
                  Agree
                  Originally posted by robbyp. View Post
                  property being terribly over priced and unaffordable property prices can only go one way at the moment.
                  No such thing as unaffordable property prices.
                  Give me some examples.

                  Originally posted by robbyp. View Post
                  Over 100 years property prices will only rise in line with inflation.
                  Actually, property rises a couple of % above inflation.

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                  • #24
                    Originally posted by tricky View Post
                    Is Bernard an experienced property investor?


                    .
                    Does it matter? It doesn't mean people should reject independent thought and get into bed with Rod Petricevic.

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                    • #25
                      Originally posted by tanmedia View Post
                      Does it matter? It doesn't mean people should reject independent thought and get into bed with Rod Petricevic.
                      It could.
                      Who would you trust on property matters?
                      Nothing wrong with independant thought.
                      But what's wrong with a property expert?

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                      • #26
                        Nothing at all when they're open and up front with the comments they make!

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                        • #27
                          Originally posted by k1w1 View Post
                          Nothing at all when they're open and up front with the comments they make!
                          and when they're not trying to sell you something.

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                          • #28
                            Originally posted by pooomba View Post
                            310K but $595 rent
                            $317 buy $625 rent
                            Are these lease options or normal renters. Why would anyone pay that much for rent on such a cheap property? I pay less on a more expensive property!

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                            • #29
                              Very good question, CJ. I want to know the same thing.

                              Apparently these deals are coming out of the woodwork in every suburb of Auckland.

                              You can't find them? You're not looking in the right places, or so I'm told. Surely our friend and property-investing expert, pooooomba, wouldn't feel the need to 'big up' his skills?
                              Last edited by k1w1; 30-07-2008, 05:37 PM.

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                              • #30
                                I never cease to be amazed at how you listen to nonsense from the likes of Orbital and it suddenly becomes fact.

                                I wouldn't accept those numbers on a lease option in this market, they are just rentals. If you are buying a property worth 400K for 310K you would want $800 a week as a lease option.

                                As I have been saying for the last 4 months now is the time to find home and incomes, they are cashflow positive and uneducated investors are bailing out of them.

                                There are home and incomes all over the place offering close to 10% at the moment. It's not about an area, it's about buying well. The 2 from yesterday are from Mangere and Otara. I've found them in the last month in Pakuranga, Mt. Roskill. It has nothing to do with areas, it has everything to do with vendor motivation and making written offers.

                                I have one today in Panmure returning 8.9% ON ASKING!!.

                                I find them all over the place. You have to make offers on them to find out what you can buy them for. You won 't find them advertised at 10% yield in the property press.

                                Make 2 to 5 offers a day and you would find a genuine cashflow property at least once a week.

                                I've never seen it so easy to find in Auckland. It was harder than this in 04 when I started.

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