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Auckland - Hands up: who's buying, who's waiting?

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  • Auckland - Hands up: who's buying, who's waiting?

    Just wondering what the market is doing?
    Seems like the slowdown has created a bit more of a buyer's market but feels like many people are hanging around the sidelines waiting and watching (me included) for some further decline and desperate deals that may or may not eventuate.
    February is 3/4 of the way through and doesn't seem like sales have taken off.

    I see the occasional reasonable deal and think, why are they selling now? Last chance to get out? do they know something I don't? If you don't know who the sucker is, it's usually you.
    Just casual musings.
    What's your plan?

  • #2
    I bought both a PPOR in Otahuhu and an investment apartment in the CBD in December, settled a month ago and last Friday, respectively. I feel I got a pretty good deal.

    If a property makes sense to purchase at its current level, and you're able to buy it, no sense in waiting around. So what if prices drop 10% in the next month? What if they go up instead and you miss out?

    They'll be higher than they are now in 10 years.
    AAT Accounting Services - Property Specialist - [email protected]
    Fixed price fees and quick knowledgeable service for property investors & traders!

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    • #3
      [QUOTE=Anthonyacat;415199]I bought both a PPOR in Otahuhu and an investment apartment in the CBD in December, settled a month ago and last Friday, respectively. I feel I got a pretty good deal.

      If a property makes sense to purchase at its current level, and you're able to buy it, no sense in waiting around. So what if prices drop 10% in the next month? What if they go up instead and you miss out?


      congrats on your purchases. As a property investor and an accountant are you a fan of paying principal and interest on your investment property loan ?

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      • #4
        Originally posted by Anthonyacat View Post
        I bought both a PPOR in Otahuhu and an investment apartment in the CBD in December, settled a month ago and last Friday, respectively. I feel I got a pretty good deal.

        .
        Which apartment block do you buy in ?

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        • #5
          Originally posted by Anthonyacat View Post
          I bought both a PPOR in Otahuhu and an investment apartment in the CBD in December, settled a month ago and last Friday, respectively. I feel I got a pretty good deal.

          If a property makes sense to purchase at its current level, and you're able to buy it, no sense in waiting around. So what if prices drop 10% in the next month? What if they go up instead and you miss out?

          They'll be higher than they are now in 10 years.
          a property MIGHT be worth more in ten years, but it might not have increased by more than the amount someone has lost on a negative cashflow property.

          IMO it's a really stupid idea to buy a property in Auckland that isn't cashflow positive at the moment.

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          • #6
            Originally posted by Kbkiwi View Post
            a property MIGHT be worth more in ten years, but it might not have increased by more than the amount someone has lost on a negative cashflow property.

            IMO it's a really stupid idea to buy a property in Auckland that isn't cashflow positive at the moment.
            For cashflow positive properties, is there a percentage yield you typically look for, or is it more nuanced than that?

            I've been drawing a line in the sand of 5+%GY on anything in Auckland, which means the only things that seem to qualify (freehold) are multi-income (minor dwellings etc), or homes with sleep-outs/utility rooms.

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            • #7
              Originally posted by Dens View Post
              For cashflow positive properties, is there a percentage yield you typically look for, or is it more nuanced than that?

              I've been drawing a line in the sand of 5+%GY on anything in Auckland, which means the only things that seem to qualify (freehold) are multi-income (minor dwellings etc), or homes with sleep-outs/utility rooms.
              Orion said in another post he would want a 8% yield.

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              • #8
                FYI Anthony - Google is serving an ad on your homepage for MYOB. Had a wee chuckle at that.
                Free online Property Investment Course from iFindProperty, a residential investment property agency.

                Comment


                • #9
                  Originally posted by big fella View Post
                  congrats on your purchases. As a property investor and an accountant are you a fan of paying principal and interest on your investment property loan ?
                  No, I prefer interest only lending, but pay additional funds into a revolving credit account. Provides more flexibility.
                  AAT Accounting Services - Property Specialist - [email protected]
                  Fixed price fees and quick knowledgeable service for property investors & traders!

                  Comment


                  • #10
                    Originally posted by BlueSky View Post
                    Which apartment block do you buy in ?
                    Just bought in Bianco Off Queen, on White Street. It's my first apartment, so not part of a pattern yet.
                    AAT Accounting Services - Property Specialist - [email protected]
                    Fixed price fees and quick knowledgeable service for property investors & traders!

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                    • #11
                      Originally posted by Kbkiwi View Post
                      a property MIGHT be worth more in ten years, but it might not have increased by more than the amount someone has lost on a negative cashflow property.

                      IMO it's a really stupid idea to buy a property in Auckland that isn't cashflow positive at the moment.
                      It is pretty likely that property will be worth more in 10 years. But that's not your main point here, it's the negative cashflow.

                      I've never bought a negative cashflow rental, when looked at from a 100% lending perspective. This is one of my criteria for a property to 'make sense' at its current price.

                      Pretty sure the PPOR I've bought would be negative if rented out, but probably not much - and this isn't the point of a PPOR. The apartment at 50 weeks rent will pay the interest on a 100% loan, all bodycorp/rates, and give a couple thousand dollars towards any incidental R&M. Maybe a lot more if I do well with an Airbnb experiment.
                      AAT Accounting Services - Property Specialist - [email protected]
                      Fixed price fees and quick knowledgeable service for property investors & traders!

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                      • #12
                        Originally posted by Nick G View Post
                        FYI Anthony - Google is serving an ad on your homepage for MYOB. Had a wee chuckle at that.
                        Hah!

                        There is nothing wrong with MYOB, perfectly fine software. Just Xero is better.

                        But I thought I got rid of those ads... Will have to have another look. Dumb things earn about a dollar a month and make the website look tacky.
                        AAT Accounting Services - Property Specialist - [email protected]
                        Fixed price fees and quick knowledgeable service for property investors & traders!

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                        • #13
                          Originally posted by big fella View Post
                          Orion said in another post he would want a 8% yield.
                          Being gross yield a net yield would probably be about 6.5%

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                          • #14
                            Originally posted by Beano View Post
                            Being gross yield a net yield would probably be about 6.5%
                            Where do you find 8% places in Auckland? What type of property are they? I struggle to find 6%ers.

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                            • #15
                              He doesn't invest in Auckland so that's not really relevant.
                              Free online Property Investment Course from iFindProperty, a residential investment property agency.

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