$450,000 where in New Zealand is the best place to buy investment property now

[johnnyd2]

$450,000? wheres the best place to buy investment property now in New Zealand

If you had $450,000 cash now where would you invest it & how would you invest it?

We are interested to know other peoples thoughts on where they think is the best place to buy property in NZ now

[SwissKiwi]

I would look at a multi unit property in Mount Albert/Western Springs to maximise location and yield.

In this location you have:
Quick train to Newmarket and CBD
1 motorway exit to the city
Old established suburb
Unitec
School zoning for MAGS and Gladstone
St Lukes
Zoo, Motat, Western Springs lake/Park

[johnnyd2]

What do you mean by multi unit? block of flats??

Thnks

[SwissKiwi]

Well for $450k you wouldnt get a 'block' of flats.
Look at Rawalpindi St there is a single flat in a block for $250k right now.

House with selfcontained granny flat,
House with basement/garage conversion into two separate rentable units.
That kind of thing.

[johnnyd2]

Thnks for that. We have $445k cash to put into a property so can borrow up to ??

[speights boy]

I think you need to find the answer to the mortgage question first ( bank or broker ).

Once you know what LVR you are allowed, and are comfortable with, plus whether you want only one or more than one property.
Then you will know what sort of price per property you are looking at.

SB

[TT500]

Email me to talk more about property investments in Manukau.
[email protected]

[Rosco]

Hi Johnny,

Where do you live? I personally would normally look close to home at first, because you know the area's and possible problems (sewerage ponds, gang area's, bad schools etc). In my opinion their are lots of opportunities in any of the main centre's, so if you live in one of these, I would probably start there. If you can't find anything, then look further a field.

As a second note, there are quite a few investors buying up real bargains in the states. Basically they are getting really good cash return. BUT, be carefuly if you decide on this, and I would view it as a real gamble but maybe only $30k. There was also an article on property talk a few days ago, about how bad the states had turned out for a few investors.

Before you buy anything I would really think about what you are after from property investment, then ensure that any property you buy is heading you in this direction.
Then set some basic criteria, as this will reduce the number of properties you have to look at.

Good luck

Ross

[Orkibi]

Well for $450k you wouldnt get a 'block' of flats.

Swiss, this is correct especially for Auckland BUT did you hear about leverage? That's what Real Estate is all about.

Johnnyd2, $450k cash could get you few types of properties.
it is hard to comment without knowing your goals and strategy and financial situation.

Normally bank would lend up to 80% if your cash flow and equity is strong.
with Flats anything over 3 units COULD be looked at as commercial transaction and therefore bank would lend 70%. -- this is not the case for every borrower, it depends on your circumstances etc.

If you are after Cash flow you could look at Commercial property or any multiple incomes property in Auckland Central or some other good parts would be good buying IMHO.

Anyway as mentioned hard to comment without knowing what do you plan to achieve thorough property investing and if you have Strategy in mind.

[SwissKiwi]

Swiss, this is correct especially for Auckland BUT did you hear about leverage?

Well spotted - Initially it seemed we were talking $450k max purchase capacity.

$450 cash does indeed give many more options.

As a second note, there are quite a few investors buying up real bargains in the states

This would not be one of the good options.

[Orkibi]

uote: As a second note, there are quite a few investors buying up real bargains in the states This would not be one of the good options.

Not as a first investment property IMHO, but maybe as an add on.