starting to invest

[Alina]

Hello everyone,

me and my husband ( based in taupo) are following the market and really wanting to start investing in property. We are not too sure where to start, do you really need a coach like Property tutors or can you archive it alone ( we do want to do it serious and as we are looking to invest in hamilton or tauranga ( open to other suggestions) we are wondering if having the support and contact from some agencies would be a great start for us to learn etc? Any advise would be great!

thank you!

[Don't believe the Hype]

Hi Alina - you can achieve it yourself... Many many have... The decision to use a property coach/mentor is not for everyone but that doesn't indicate if they're good or bad. If you do choose to use one you need to make sure you have a very well defined outcome.

property mentors/coaches can be VERY expensive but that doesn't mean they are not great value. If you go along with no specific goals listen then do nothing it could be a huge waste of your money.

I'd suggest before you go pay between $5k - $30k for an annual training package do your own education and get the basics... Get a feel for what you want out of your property investing and your timeframes, risk profile.

find a property mentor who charges hourly or daily and start there - it might cost you $300-$400/hr but a half day to answer your questions or decide if you want a more permanent arrangement might save you thousands.

Spend the next year in education mode... Learn everything you can... Ask questions of people but don't just believe what you're told - watch out for the hype sales people out there telling you get in now or you'll regret it.

Making the WRONG first step by moving quickly due to FOMO could be more harmful to you're long term investing plan than any loss you may see in 12 months time if the houses you're looking at now come back to market at a 5-15% premium.

There are many affordable investment grade markets in NZ that will deliver different returns over time - as you spend the next 12 months educating yourself of the ins and outs of property investment also spend that time understanding what your 1 - 5 - 10 and 30 year goals are... Understanding this will help you determine what is the right type of investment you want and you can pick a market that helps you achieve your overall life goals.

[flyernzl]

1 - Decide exactly why you are going to do this What are you trying to acheive?

2 - Join the property investors association in either Tauranga or Rotorua, then go every one of their meetings for the next year. Network there. You can tap into an enormous amount of knowledge and experience from a wide assortment of people at very little cost by doing that.

3 - Always remember that eventually you have to make the hard decisions. Other people can only comment or advise from the point of view, which may be quite different from yours.

[Alina]

Thank you for your advise Flynernzl, will sit together with my husband and write down our short and longterm goals, that is exactly the position I feel we are in, we know what we want but I feel there is still so much to learn, when is the right time to start and take action instead of being undecided.

[Alina]

Thank you a lot for your advise, I really appreciate it and will look into the diffrent options, like Flynernzl suggested to join the tauranga or rotorua property investor association might be a good start for us, will look into it! thank you !

[artemis]

While doing what flyernzl said, continue your education. Make a list of books and magazines - try the library. And websites. Read IRD booklets Rental Income and Depreciation. Unit Titles act and Residential Tenancies Act. And Matthew Gilligan's two books.

Start recording property listings in the areas you are interested in - start a spreadsheet. After a while you will start to see sale prices come through. Go to lots of open homes, ask questions.

[Pegasus]

Graeme Fowlers facebook group has a lot of info and is very active also with other investors answering each others questions. Well worth joining - you could message Graeme here, he posts as Orion

In my experience it never seems like the 'right' time to start, until later when you look back and feel glad you did. You will learn by doing it as well

[Alina]

Thank you Pegasus,
I messaged him today, could you tell me what the facebook group is called by any chance???

[mortgage broker]

If you feel that you keep thinking about property investment but never get down to the doing part, a property tutor could be well worth it.

[ChuckNorris]

Hi, Alina!
If you don't have any experience in this field you should refuse the idea to invest in redevelopment projects or high risky flipping strategy. You need to determine the type of real estate, I would recommend you to choose a buy-to-let residential property.
A short-term rental property would make you a stable and high profit – about 5% yield. To minimize risks, you can use the services of professional management companies (this costs 20−25% of the total rental revenue), the expenses will be rewarded with higher occupancy rates. A one-bedroom apartment in the center might be a promising investment.

[Bobsyouruncle]

Alina Chuck is clearly not a kiwi investor so by "buy to let" he means rental property and property management fees should be 7 to 9% of your rent, never 25%

[ChuckNorris]

if you hire a management company, which finds tenants and carries property services, it usually charges 10–20% of the monthly rent

[Bobsyouruncle]

if you hire a management company, which finds tenants and carries property services, it usually charges 10–20% of the monthly rent

Not in New Zealand they don't. Firstly we rent weekly and we don't use the term "property services". Which country are you in?

[ChuckNorris]

I am from Germany. Management companies are used to carring out property maintenance, cleaning services before and after tenants’ arrival/departure,
registering and paying property taxes etc here

[Bobsyouruncle]

You are posting in a New Zealand forum so your info is incorrect. You need to check with country forum you are in. In New Zealand property management fees are much lower. It is almost unheard of to be over 10%. On some of my properties I pay only 6%.