Renovate a Property - might sell /might rent it ???

[Bluekiwi]

It annoys me in these property developers programs in England, such as "Under the Hammer" and "Property Ladder".

That these POM's buy these properties and renovate them, with lots of them not having to know prior, whether they are going to on-sell to make a quick profit or hold long term as a rental.

They often say that they will wait till its finished, and if they think they can get a good price they will sell, and if it looks to more suit a rental then they will hold onto and rent.

I would love to be able to do that here.
Once the property is renovated.
At least give it a go at selling at a good price and then if it doesnt sell, then put in the rental portfolio.

But here in NZ.
You have to know whether you are flipping or holding.
As you have to purchase the property into the correct entity.
Especially if your flips are done in a GST reg. entitiy.

How can the POM's get away with such flexibility ?

[graemeh]

If you can't sell it you can always hold it in your trading entity.

Another option is to sell it into your "hold" entity.

[G Lin]

It is a tv programme, they make things simple, and they can say what ever they like.

For all we know, those are just actors who were paid to lie on tv.

Those deal finders/sponsors just want more publicity, more marketing, getting the typical "mum and dad" pay $$$ and more $$$ to them.

In reality, it is a completely whole different story.

[G Lin]

If it sounds too good to be true, it probably is.

Just talk to anyone who invested in the Richmastery/Property Teachers Tax Lien & Deed Course. It is a terrible course with no support and waste of money!

[Bluekiwi]

It is a tv programme, they make things simple, and they can say what ever they like.

For all we know, those are just actors who were paid to lie on tv.

Those deal finders/sponsors just want more publicity, more marketing, getting the typical "mum and dad" pay $$$ and more $$$ to them.

In reality, it is a completely whole different story.

Not even Keanu Reeves could "act" as dumb as some of the people on those shows.
No they are definitely not actors.

Note: my response it to the part of your comment I understod.

[spaceman]

ummmmm... I think it might be because they have a capital gains tax .... thus they have to pay tax whenever they sell it... whilst in NZ capital gains are tax free and we are taxed on income if we derive our income from selling properties.

Cheers
Spaceman

[Bluekiwi]

ummmmm... I think it might be because they have a capital gains tax .... thus they have to pay tax whenever they sell it... whilst in NZ capital gains are tax free and we are taxed on income if we derive our income from selling properties.

Cheers
Spaceman

Oh yeah, that might be it.

[Traff]

Renovating

There is some diference in New Zealand in renovating to sella nd enovating to rent both in materials used and overall. I know many many traders holding onto properties becuase they underestimated the home buyer market in particular. get advice and dont change your mind once you decide what to do and ensure you renovate accordingly.

We will do over 50 renos this year for investors and before we start they have to provide a full brief or else we wont price the works . most get rented for above average rent ( some by heaps) and our traders are selling their places very quickly as a rule in Auckland. their is a formula and get it wrong and you may own the property for a long time.
Just did a 5 beddie in New Windsor and it has rented out before completeion for $750 a week - owners advertised it at $650 but they loved the house and paid more to live there.

[Bluekiwi]

Is their any particular area's that you are doing flips in Mark.
I seem to remember from another thread you mentioned Manurewa.
What price bracket are the flips in, I hear that the 275 to 350 price bracket is selling well to home buyers.

Do you find with clients Mark, that they have to buy very well to make a profit, and cover the renovation and transaction costs of the flip.

Do they usually use agents or sell themselves.