Who is buying in '09?

[Marc]

Hello all,

In our PT survey we had the following question:

Do you think you will purchase an(other) investment property between now and June 2009?

The results were:


Yes: 40.1%
No: 30.8%
Not sure: 28.1%

I am interested to see if anything has changed from the survey?

So who is buying or thinking of buying first/second quarter '09?

Cheers

Marc

[mattnz]

I was planning to buy and had put in offers in the middle of 2008. Fortunately we didn't end up settling on any of the properties. Not planning to buy anything until the financial crisis settles.

[Ecker]

I'm the same as mattnz. Planned on buying middle-end of 08 and have put 3 offers on property in the past few months. All have been 10-20% below asking price but no vendors willing to accept. Two offers gave the vendors the realisation they not gonna get the price they want after they both advertised for over a year. They both took property off the market.... There is definately a stand off between buyer and seller at present. People still want somewhere close to 07 prices.....
I'm glad i didn't get any offers excepted now as the longer its left the better. Prices are only going one way. I have a large deposit but work in a industry that could dry up so being cautious. so i'm also waiting untill when ever the financial crisis settles

[Marc]

They both took property off the market.... There is definately a stand off between buyer and seller at present. People still want somewhere close to 07 prices.....

I think the seller will have a change of heart next year if any of the forecasts for the state of the financial markets and unemployment come true.

Here is a scary video talking about the US where the sub-prime mortgage was not the only dodgy mortgage product out there.


From: http://www.youtube.com/watch?v=9ZtNzcWTck8

Cheers

Marc

[MikeO]

Just bought a place

Have just bought a place at a short call auction of around 2 weeks. We had just sold a place for significantly less than we had hoped to get but on balance are happy with the differential (paid 90k more for a larger house on 760 sq m fee simple section v 400 sqm cross lease).
Good move or bad? Time will tell I guess. I'm happy.
Agree that a lot of houses seem to be sitting on the market at last years prices.

[ecoeco]

Have bought at the tail end of '08 and will continue in '09. I will happily make offers on cashflow positive deals where ever the vendors advertised price is realistic.

I price my offer at the return I think is appropriate for the property and advise the agent the logic for my offer, this helps avoid offense.

I am noticing a lot of places advertised at bazzare prices which simply do not make sense in the current market and so don't bother with those. However, there are now properties which are realistically priced (although frequently unhappy vendors).

[eri]

with the possibility of term dep. rates dropping below inflation i was all ready to buy an investment prop. as a way of protecting my cash

however to do so i want a double digit return, and that requires a big drop on current prices and/or a rise in rental returns, not too much of either at the moment

the rapidly dropping interest rates has gotten many over stretched owners off the hook and even though many could still sell at a healthy profit they want more

same with banks holding mortgagee property, this time round they seem to be sticking high reserves on their stock and trying to wait things out rather than crystallise their loses

so with term dep. rates on the floor but property refusing to get off it's high horse it's looking like the sharemaket is the best bet in town

just have to watch this world recession a little more and work out how nz companies will be affected

[mattnz]

Yes there are interesting market dynamics at the moment. Those that have been able to refinance at lower rates now are ok again. The ones that fixed long term at high rates are the ones more likely to be struggling. Their problem is that even if the sell the properties, they will have to pay off the break fees for the interest rate differential when they sell.

[Stevegoodey]

I traded a deal yesterday, and will look to sell down some more of my development which is breaking ground next year.

I'll most probably trade a lot of property in 09 but may buy and hold a couple as future development land banks too.

If the numbers work and so does the funding I don't think there's much of a better time to buy for the long term than right now.

[Halfway To Paradise]

Just gone unconditional on a unit nexy door to one I already own. Got it well under Council valuation and what I believe is true value. My property manager says sshe will get me $190 per week I paid $120k needs about 2-3k spending on it.

Raising mortgage was not too easy though, and another mortgage we have re-fixed had to go onto I&P after being interest only.

Rob

[Strummer]

just bought a new place, in for the long haul so I'm not too worried about quibbling over a few thou.

No point in keeping cash as inflation creeps higher.

[orion]

Hi Marc,

Have bought 4 this year.

One that was going be be a quick cash in February, just as the market turned which I have now held onto and is rented and covering the mortgage.

The next one was a commercial (cheap) property in Pahiatua which has now been painted and will be sold on again.

The 3rd one was only a few weeks ago which is a rent to buy, first one for a long time, bought at mortagee for $172,000 and on selling for $210,000 which is around market price, RV is $245,000.

And just last week, a long term rental at $150,000 which is rented at $300 a week. Was on for about $190k and owner got very keen to sell.

Not seriously looking too much in 2009, although if there are a few more bargains like these ones that come up from time to time, it would be silly to turn them down.

With interest rates having come down so much in the last 6 months (again contrary to most people's opinion including the so called egg-spurts), it has made it much more sensible to buy long term rentals currently, especially with the 10% or so drop in overall house prices.

Regards
Graeme Fowler

[muppet]

Welcome back Graeme.

Merry Xmas and a Happy New Year to you and your family.

[NZGEMS]

I have purchased a few this year, mostly to trade although have just kept two units (for the medium term, will sell one day) at a 14% return. Still holding one of the trades purchased at the beginning of the year as the market turned so it is not worth selling at the moment. Still may still see it for cost (it is subdividable) depending on how things go. Extended settlement on another till the end of next year from middle of this.

Also have found the land to build the mansion on the coast but haven't settled on that because I couldn't sell the required number of properties so have worked out a plan with the seller for us to purchase it in the future, and slowly things are coming together to make that happen, interesting how things turn out.

Really excited about lowering interest rates. That will make a HUGE difference to us, have been just fixing loans for 6 months at at time till I am comfortable to fix for longer or may just leave floating as I believe the floating rates will become lower than the fixed again soon so waiting for that time.

Generally selling more than I am purchasing at present though, still have a bit of land I am looking to move and we are slowly getting there.

Interesting times,
Robyn

[freezinhot]

I am currently lease optioning the last remaining unit I have (block of 3) had tried to sell earlier this year but had no solid offers so lease option is where I am concentrating now, once this is done I will look to purchase another B&H +ve cashflow if possible.

Finance is becoming harder for us especially holding on to the last unit so once this is leased out we should be ok for another.

Interest rates will really help our cashflow early next year when the some of our loans mature.

Happy new year!!

FH