Papamoas booming and chick to the rafters with the Blue rinse baby boomers.
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Originally posted by elliot View PostSo Ron are you saying invest only in inner city auckland?
If that is the case to buy say a unit in mt eden costs now up to $500000 with rent below 400 per week.
Some of my RonovationZ student Dec 2011 and Jan 2012 purchases...
A 3 bdrm in Aliford St at an auction for $234,250, plus Reno's of $20k making a total of $254,250 rented out last week for $395 pw. CV $260k, ARV $$285k to $300k.
Last month we purchased a good size 2 bdrm stand alone house in Richardson Road, Mt Roskill for $302,500. CV $380. With anticipated $20k reno's and creating an addition bedroom the rent should be in the between $450pw to $550pw and ARV $400k to $450k.
Under renovation at the moment with early entry and not yet settled at 10 Hampstead Rd, Sandringham, 5 units by 5 students at $234k each, all separate titles, reno's of $7k to $8k each, will rent for $360+ pw. CV $240k, ARV should reach $260k to$290k. (Prices around Sandringham have been reaching mid $300k's)
Ron Hoy Fong
RonovationZ
Tip of the day:
Real Deals are not found at the Advertised Price
Real Deals are found at the Negotiated Price
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So, picked the best performers in your portfolio? Just askin iz all.
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Originally posted by Keys View PostSo, picked the best performers in your portfolio? Just askin iz all.
Selwyn St, Onehunga, p/p $121k CV $240k with $12k reno's will rent for $350 pw ARV $260k to $270k
Mt Wellington Hwy p/p $240k 5 x 2 bdrm units, separate titles by 5 students, QV $262k, rent $350k to $360 pw
Ellerslie Panmure Hwy, pending settlement, p/p $195k Reno cost $15k, 2 units, 2 titles, 2 x students, ARV $240 to $250k, rent $350 to $360pw
Ron Hoy Fong
RonovationZ
Tip of the day:
Refinance your equity after revaluation to get your next purchase creating no money down deals
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Originally posted by RonHoyFong View PostForget the national averages, there is too much skewering, some towns boom while others die.
Take a look at Tauranga / Mt Maunganui, great place now, but if baby boomer should all retire to there, jobs would drop, the turnover of houses drop, tourism would drop, younger people would move away, the town would become a generation of oldies and change in the future.
Stick to the major cities and compare the data.
Pick any house in inner Auckland, look at the price of it in the 50s or 60s, then double and redouble the value of it for every 8 years and you will find that the value will be on target for today.
(RonovationZ)
House prices look like they track real GDP growth more or less, although I don't have numbers all the way back to 1960.
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Originally posted by Lissica View PostI'm not sure what exactly you're asking me to forget. Perhaps you think the Auckland economy will be bigger than the NZ economy one day
House prices look like they track real GDP growth more or less, although I don't have numbers all the way back to 1960.
NZ has a shortage of builders at the moment,*
(1) It will take 10 years to reconstruct Christchurch.
(2) It will take another 10 years to sought out all the leaky homes in Auckland.
(3) There is insufficient accommodation for migrants as they replace retiring Baby Boomer
Developers and 2nd tier bank lenders who financed the developers that were around in 2007, have all gone bankrupt. The 40,000 to 50,000 surplus accommodation in in 2007 has now depleted, so what huge shortages is the next three years going to bring us. I don't see a crane in sight in down town Auckland.
To me I see a looming "Rent Boom" starting which will precede an anticipated "Property Boom"...
So "Will the next Boom be the Boom of all Booms?"
Ron Hoy Fong
RonovationZLast edited by RonHoyFong; 22-01-2012, 06:35 PM.
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Originally posted by RonHoyFong View Post
But lets pin you down on this vague concept of a 'boom'.
What do you consider as a 'boom'? ie how much do property prices have to rise over what sort of time frame?
Presumably a 'boom of all booms' has to be quite a bit more significant than a boom.
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Originally posted by Lissica View PostWell, you're two years into the new decade already. Some interesting points made in that thread, and equally interesting responses.
But lets pin you down on this vague concept of a 'boom'.
What do you consider as a 'boom'? ie how much do property prices have to rise over what sort of time frame?
Presumably a 'boom of all booms' has to be quite a bit more significant than a boom.
Ron Hoy Fong
RonovationZ
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Its great to hear from someone who walks the talk.
I would also like to mention the cost to build a new house these days, with regulations and specifications tighter, with council requiring so many silly things and specialist reports and consents to go along with these silly things, .............
What new supply does come on line, will not be cheap, pushing up the prices on current housing.
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Originally posted by RonHoyFong View Post
My 2nd ever IP at 38 Church St, Onehunga cost me $14,500 in June 1973
Assuming a doubling every 8 years
1973 = $14.5k
1981 = $29k
1989 = $58
1997 = $116k
2005 = $332k
2012 = $664k
CV for 1/07/2011 = $610k
(was sold to current vendor for $132k in 1993)
Ron Hoy Fong
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Quote Originally Posted by RonHoyFong
My 2nd ever IP at 38 Church St, Onehunga cost me $14,500 in June 1973
Assuming a doubling every 8 years
1973 = $14.5k
1981 = $29k
1989 = $58
1997 = $116k
2005 = $332k
2012 = $664k
CV for 1/07/2011 = $610k
(was sold to current vendor for $132k in 1993)
Is that some imutable law of nature that property doubles every 8 years?
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