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  • First home buyers needing advice from the experts

    Hi everyone,

    My partner and I are looking to buy our first home in Auckland. We were looking at New Lynn and almost made an offer for a 3 bed 1 bath crosslease on Nikau Street. However vendor looking for a higher price and declined our offer. As we both work in the city, New lynn would have been perfect for us to travel to work however, everything in New Lynn seems to be out of our budget and with the flooding that recently occurred, we are slightly worried with buying in that area. Of course we do read the LIM reports for any flooding potential but it's always a concern for us home buyers with all these natural hazards! We currently have an approved bank loan for up to $700,000 and although there are many options available, we are trying to keep our budget to 650k-680k (so that we can buy furniture! haha). Now we are looking to buy a 3 bed house as my father and brother will be living with us. We need some help on where is a good area to buy in terms of long term capital gain as we will want to look into buy investment properties in the future by using the equity from our first home.

    1) What are the upcoming suburbs we should be looking at for our price range? Also, which areas are more desirable/safer
    2) Would it be a better option to buy further out eg Papatoetoe for a bigger land, or settle with a smaller, crosslease home?
    3) Should we buy a renovated home or an older home which we can save up for renovations in the future and perhaps sell it when the time comes for us to expand our family?

    Hope to hear good feedback and any advise is much appreciated!

  • #2
    #3 buying a house you can add value to is a good way to create wealth without relying on a rising tide of capital gains. At the same time, there are traders sitting on renovated houses so a sharp offer might save you time and hassle and solve a problem for them.

    Be careful of waiting for too long. It's not obvious but a .5% interest rise pretty much offsets a 7-10% price decrease with regards to servicing costs. Your bank will approve an amount but what you should be concerned with is interest costs. Maybe see if family can loan a bit to help you do this sooner.
    Free online Property Investment Course from iFindProperty, a residential investment property agency.

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    • #3
      Hi Nick. thanks for your reply. Can you recommend suburbs to look at? Currently we are looking at suburbs like papatoetoe, otahuhu, glen eden

      We will be borrowing a loan from family for the deposit don't know if they will want to borrow us more haha

      Comment


      • #4
        I like Otahuhu, its landlocked and a lot of infrastructure is going in. Close to the center of town etc. Unless you have stacks of time to learn all this stuff don't worry too much about picking the best option for capital growth, you'll run around in circles. Just find something simple (3br, flat site, close to amenities, OK street, freehold...).

        In saying that... we run a buyers agency for investors and have someone in Sth Auckland. If you'd really like to hedge your bets and get a home that stacks up as an investment we could help you achieve that. Maxine is a local pro investor. Shoot me an email at nick [at] ifindproperty [dot] co [dot] nz
        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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        • #5
          Otahuhu is a great option. I've just bought there myself in January. It's got a reputation as a poorer area, but I have a feeling that'll be changing in the mid term future.

          As Nick says, there's no sense in trying to pick a 'best' option. By and large, things go up together.

          Nick, can you not just write your email address? It works fine for me, even automatically makes it a hyperlink: [email protected].
          AAT Accounting Services - Property Specialist - [email protected]
          Fixed price fees and quick knowledgeable service for property investors & traders!

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          • #6
            Otahuhu is great. Just finished a development there. Long term gains possible

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            • #7
              HI Anthonyacat, where in Otahuhu did you buy?

              Comment


              • #8
                Pretty much central. Avenue Road, near Murphy Park. Walking distance to everything you need. Except a good supermarket. <10 min drive or <15 min cycle to Sylvia Park.

                3bed house, a shade under $600k. But needs some work, currently repiling for $25-30k or so.
                AAT Accounting Services - Property Specialist - [email protected]
                Fixed price fees and quick knowledgeable service for property investors & traders!

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                • #9
                  Does anyone know the state housing stats for Otahuhu? Capital growth could be limited if too many of these are in surrounding suburbs, mangere etc...
                  "DEBT BECOMES IRRELEVANT WITH INFLATION".

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                  • #10
                    Originally posted by Anthonyacat View Post
                    Nick, can you not just write your email address? It works fine for me, even automatically makes it a hyperlink: [email protected].
                    People write their email addresses like that to avoid bots that crawl the net adding any email addresses they find into spam databases.

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                    • #11
                      That part of New Lynn is more like Kelston, a number of state houses and so not the best neighbours. Otahuhu is good but not sure if you will be able to get anything in your price. Look at Glen Eden and Sunnyvale close to the train station, the western line is great and will get quicker with the central rail loop. At

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                      • #12
                        Originally posted by Lanthanide View Post
                        People write their email addresses like that to avoid bots that crawl the net adding any email addresses they find into spam databases.
                        Fascinating! I had no idea. I do get the occasional spam email, but they're easy enough to delete. Would much rather do so than having to disguise my address each time.

                        Is only a matter of time until the spam crawlers figure out formatting tricks, isn't it?
                        AAT Accounting Services - Property Specialist - [email protected]
                        Fixed price fees and quick knowledgeable service for property investors & traders!

                        Comment


                        • #13
                          Originally posted by Anthonyacat View Post
                          Fascinating! I had no idea. I do get the occasional spam email, but they're easy enough to delete. Would much rather do so than having to disguise my address each time.

                          Is only a matter of time until the spam crawlers figure out formatting tricks, isn't it?
                          This isn't really on-topic for the thread but others might be interested too.

                          Basically some people don't print their email address in plain text on any forums anywhere on the internet, to avoid spam. I personally never give out my email address to pretty much anyone online, but then I'm not running any sort of business. I'd imagine that putting your email address on the property talk forums is much less risky than other forums on the internet, but it is still globally accessible and indexed by Google. Also if you have spam detection as part of your email service (eg, Google gives it to everyone for free, and I'd expect Microsoft and the other big free-email providers do too), then there are likely dozens or hundreds of emails each day that you don't even see because they're detected and deleted as spam before they get anywhere near your inbox.

                          Yes, eventually bots will be able to detect the standard forms of obsfuscation of email addresses; I expect that some/many already do. However the fact is, people who obfuscate their email addresses are a bad target for spammers anyway - these people are specifically obfuscating their email address so that they don't receive spam - because they're just going to delete it anyway. There's no point in a spammer taking extra effort to send a spam email to someone who is going to delete it 100% of the time. In other words, people who obfuscate their email address have already signalled to the spammers that they're smarter than the average internet user, and so they aren't going to fall for 'discount viagara' or whatever junk it is they're trying to push. So it's generally not in the spammers best interests to add complexity to their tools, increasing the rate of false positives and generally slowing down their email harvesting rate - it's VERY fast to scan pages looking for the @ symbol and detecting an email address; trying to look for all variants such as "[at]" or "{at}", and trying to work out where the email address starts and ends is much harder. Eg, you can't write a simple rule to parse the email address "[email protected]" from these input strings:
                          my e-mail address is hello [at] here it is [dot] com
                          email me at hello_at_hereitis.com.
                          my addy is hello {att} hereitis {dotcom}
                          You can reach me @ hello[spamblock]@hereitis[dot]com, remove the [spamblock]

                          These would all be easily defeated by a moderately advanced "AI" that can understand natural human language and the allowed formats for email addresses, but spammers aren't employing these because they cost more, they're slower to run, and as I said above there's no value in targeting people who obfuscate their addresses anyway - they aren't the target market.

                          NB, I have a bachelor in computer science.
                          Last edited by Lanthanide; 19-03-2017, 11:40 AM.

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                          • #14
                            Originally posted by P.Bateman View Post
                            That part of New Lynn is more like Kelston, a number of state houses and so not the best neighbours. Otahuhu is good but not sure if you will be able to get anything in your price. Look at Glen Eden and Sunnyvale close to the train station, the western line is great and will get quicker with the central rail loop. At


                            Yea we have considered Glen Eden and Sunnyvale as well. Definitely would buy nearer to the train station just because it's easier for us to get to work. Thanks for the options! We are still "shopping" around

                            Comment


                            • #15
                              Hi Everyone,

                              Back again with 2 properties we are considering. Just need some advice since we're kind of in a dilemma.

                              1) Massey (We decided to look further out west but near to motorways for easier access to work)
                              3 bed 1 bath, freehold section of 675m2 land size. Documents very clean no flood plains, overflow path etc. Creek nearby
                              To be auctioned - estimate mid 700s - budgeting 730k




                              2) Mt Roskill
                              3 bed, 1 sunroom, 1 bath. crosslease - half share of 888m2. Property in front is in flood plains zone - was advised by partner's parents who are QS that the property will flood in the garage as there is a drain hole at the front of the garage - water from other properties will seep down to it. Agent said they came by during the week when it rained but "it seems fine" (But that's what any agent will say to sell you the house)
                              Asking 899k - we told agent we can only offer 800k and asked to meet up for negotiation but undecided if want to negotiate due to the risk of flooding.

                              Both properties are at the bottom of the hill (road)


                              My question: Is it worth the risk buying in central for 100k more or buy further out in Massey? What is the likelihood of capital gain for both properties based on location in your opinion?
                              Any advise is much appreciated!
                              Last edited by tsn; 11-04-2017, 10:17 AM.

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