Investment property deals

[Onsprada]

I'm looking to buy my first investment property and came across a website that seems to good to be true.
Has anyone purchased property from property-investors nz website?

[AMR]

You should talk to Hadar Orbiki, he is a member on here and owns the site.

[gavinc]

You know what they say <if it seems to good to be true) then it probably is.
Do your research - if something is being sold at a so called "discount" what is it that earns the discount?

[shanecarruthers]

What deal is it Onsprada ?

[shanecarruthers]

if something is being sold at a so called "discount" what is it that earns the discount?

Possibly good negotiating and vendors motivation ??

[Orkibi]

Hi Onsprada,
I'm happy to answer all your question here or by email or phone, feel free to PM me if you wish.

Provided the moderators will allow me I will be more then happy to answer questions here so everyone can read.

Thank you, I take it as a complement that you say the site looks good, we do try to give our members / site users as much value as we can in term of information, property investment tools etc.

the properties for sale "Deals" listed on the site are listed by individual property sellers or agents.
As always, one should always carry his own Due Diligence and seek independent advise.

You are welcome to visit the Testimonials page on the site and make your own decision.

if something is being sold at a so called "discount" what is it that earns the discount?

Usually gavinc discount is and should be from a current registered valuation or fair market value.

[Onsprada]

There are a number of deals on the site that promise instant equity for example: a house in Bay of Plenty
Just recently sold was asking 75k for the purchase price and the 'rating valuation' is 105k. Are rateable values
Or cv's an accurate measure to value the house or would it be wise to have a registered valuer to redo it?

[Orkibi]

would it be wise to have a registered valuer to redo it?

I think my answer/ comment above answer your question.

In general If the buyer don't know the Market he/she targeting or have access to comparable sales then Yes, I would recommend to obtain a Registered valuation. Anyway, this maybe a requirement by the lender.

[gavinc]

Ask yourself this question "why don't the website owners buy the house themselves and on-sell it at the true market value and reap the profit themselves?"
So to answer your question - yes it would be wise to get your own registered valuation. Rateable value and CV's are a guide but can be wildly off the mark.

[Onsprada]

Thankyou Orkibi and gavinc for your insight

[Orkibi]

"why don't the website owners buy the house themselves and on-sell it at the true market value and reap the profit themselves?"

Sorry gavinc but this question is not relevant and nonsense...

Loll, The website owners cannot buy every property that is listed on the site.

The benefits and value for investors from joining the Property Investors Network site apart from providing Property Investment tools and great articles by NZ leading property professionals is having access to property Investment Deals that actually stacks up in terms of Yield / Cash flow, Discount and ad value potential etc. As mentioned above and naturally some deals will be better then others but every deal listed on the site meat at-list one of the site listing criteria which characterize Investment property.

The site is proven to save investors time and money looking for Investment properties.
Im not saying that there are no investment properties out side the website but saying that on the Property Investors Network website one will find only Investment properties with no nonsense from agents who don't understand what is a Yield or how to calculate it.

[Wayne]

As Orkibi says - do your own due diligence. The website shows you some deals and doesn't force you to buy them. Some deals maybe better than others or you could search Trademe and see what 'deals' are there. I see the website as another option and wouldn't slag it.

[Onsprada]

Hi Hadar

Hi Orkibi, in response to your pm the property is a stand-alone house situated in Waitangirua, Porirua. It has been listed for quite some time and the vendor was originally asking 210 but has dropped to 170, so he is obviously motivated. The house next to it sold for $175k as indicated on trademe. What are your views? Is this a good area to invest?

Cheers

[Orkibi]

sorry Onsprada my mailbox was full...

Im not an expert in this area, In general you would expect lower capital appreciation outside of small towns like Waitangirua, Porirua.

Considering the property next door sold for $175k this maybe the market value SO i would aim to buy the one you are looking at well bellow that.

Some guy Pope purchase a few there, from memory he find it rough so make sure if you end up buying there you buy in the better part of Porirua.

I would suggest you find out how is the rental demand there, is it currently tenanted or owner occupied?
if tenanted how are the tenants (if in doubt buy as vacant possession), Who are the neighbuors?
what is reasonable achievable market rent?
In an area like that I would aim to buy minimum 10% gross yield.

[Puff]

Hi Onsprada.
Just like to back up Hadar. He is one of the straight shooters in NZ property. He has a great website that help many people I know.
Good luck.
Mark