I am just curious to see how people are getting on buying property now.
I have heard a lot lately about how the bargains are now out there, and to get in quickly before prices take off again (form your own opinions as to whether this will happen in the near future........)
Personally I see that prices in most areas have dropped but only to 2005-2006 levels. And prices of bread and butter IP's back then were way over the top.
Example:
A 3 bedroom home on 650'ish sq m with double garage in West Auckland (Massey, Henderson, Royal Heights) was worth around $375-$395K. The same properties are now asking about $330-$350K. You find a desperate seller and get it for the Absolute Bottom Bargain price of $260K. It rents for $340 per week. ($17,680 PW not allowing any vacancy - based on 52wks/yr rented)
People would say that this is an awesome buy. And it probably is, pricewise.
However to buy the property as above, just to have it cash neutral, you would need to stump up at least $80K deposit, and have a mortgage of $180,000. And the rent would only cover interest only for this amount (assuming you got 8.5%), plus about $2500 for rates,ins,maint etc.
These figures are very light too, and are just to illustrate my point. Not a bargain at all in my book........
So how are you getting on folks? There is only so much you can buy that you have to keep topping up from your own funds. How are people buying IP's now and funding them? Are you getting better figures than my example above? I personally wouldn't go for a property as detailed above, there is little prospect for capital growth in the near future, and in the meantime you have to keep shelling out to keep the place going. Even after you have paid up a large deposit.
These are the so-called bargains that we should be "rushing in to buy". Not for me thanks.
Perhaps I am too old-school, from the days when rents covered everything, and you didn't have to resort to all this lease-optioning , on-selling, assigning stuff to prop up IP's.
So-how do you do it now?? Open to discussion, abuse and beatings........
I have heard a lot lately about how the bargains are now out there, and to get in quickly before prices take off again (form your own opinions as to whether this will happen in the near future........)
Personally I see that prices in most areas have dropped but only to 2005-2006 levels. And prices of bread and butter IP's back then were way over the top.
Example:
A 3 bedroom home on 650'ish sq m with double garage in West Auckland (Massey, Henderson, Royal Heights) was worth around $375-$395K. The same properties are now asking about $330-$350K. You find a desperate seller and get it for the Absolute Bottom Bargain price of $260K. It rents for $340 per week. ($17,680 PW not allowing any vacancy - based on 52wks/yr rented)
People would say that this is an awesome buy. And it probably is, pricewise.
However to buy the property as above, just to have it cash neutral, you would need to stump up at least $80K deposit, and have a mortgage of $180,000. And the rent would only cover interest only for this amount (assuming you got 8.5%), plus about $2500 for rates,ins,maint etc.
These figures are very light too, and are just to illustrate my point. Not a bargain at all in my book........
So how are you getting on folks? There is only so much you can buy that you have to keep topping up from your own funds. How are people buying IP's now and funding them? Are you getting better figures than my example above? I personally wouldn't go for a property as detailed above, there is little prospect for capital growth in the near future, and in the meantime you have to keep shelling out to keep the place going. Even after you have paid up a large deposit.
These are the so-called bargains that we should be "rushing in to buy". Not for me thanks.
Perhaps I am too old-school, from the days when rents covered everything, and you didn't have to resort to all this lease-optioning , on-selling, assigning stuff to prop up IP's.
So-how do you do it now?? Open to discussion, abuse and beatings........
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