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  • Christchurch

    I am new on this forum. Just wondering when is a good time to buy a house in Christchurch?

  • #2
    Hi Teeboy

    I think it is an ok time to buy a rental in chch now and a really good time to buy a house to live in (you should be able to pay less in mortgage than current rents). Don't be in too much of a hurry - wait for a good deal and negotiate hard.

    For context I recently purchased a 2 BR unit. Got a good price on it however it was really hard to find tenants which I have put down to a combination of oversupply and winter.

    Good luck

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    • #3
      Originally posted by MikeO View Post
      Hi Teeboy

      I think it is an ok time to buy a rental in chch now and a really good time to buy a house to live in (you should be able to pay less in mortgage than current rents). Don't be in too much of a hurry - wait for a good deal and negotiate hard.

      For context I recently purchased a 2 BR unit. Got a good price on it however it was really hard to find tenants which I have put down to a combination of oversupply and winter.

      Good luck
      What is your yield for that unit? i'm also thinking that chch is worth looking now

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      • #4
        Originally posted by learningInProgress View Post
        What is your yield for that unit? i'm also thinking that chch is worth looking now
        Oversupply of housing, falling rents, thousands of poorly done repairs.

        I'm sure there are bargains to be had but also a hell of a lot of potential expensive lemons- CHCH will be the next leaky home saga due to the poorly managed/done repairs, its a ticking time bomb so do you due diligence...thoroughly!

        Craig

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        • #5
          Originally posted by MikeO View Post
          Hi Teeboy

          I think it is an ok time to buy a rental in chch now and a really good time to buy a house to live in (you should be able to pay less in mortgage than current rents). Don't be in too much of a hurry - wait for a good deal and negotiate hard.

          For context I recently purchased a 2 BR unit. Got a good price on it however it was really hard to find tenants which I have put down to a combination of oversupply and winter.

          Good luck
          Thank MikeO

          Comment


          • #6
            yer well I dropped the rent to $260 per week which is only a gross yield of 6.2%. Not great but I had a fair bit of cash in the bank that was doing nothing for me other than keeping me up at night worrying about the OBR haircut. I'm pretty sure I could have got more like $280-$300 if I'd waited it out which would have been a yield of just over 7% but no point having a place empty. Also I've got no problem having good tenants paying below market rent. Less chance they will move out forcing you to take a risk on someone new.

            Courham makes a good point on earthquake repairs. I wouldn't buy a property that had any sort of structural repairs done and definitely worth getting a builder to inspect. TC2 or TC1 only.

            On the plus side, Christchurch population is growing so demand should eventually catch up with supply.

            Comment


            • #7
              Confidence is down while population increases - the macro-factor is ideal for buying.

              On the micro-side, if you are going to buy there I'd put a premium on location right now. It's a subdued market, look in other cities what usually happens when it turns, central and well located properties go up first, then the rest follow.

              So I'd set a yield criteria and get into the best area where I can get close to that yield or better yet improve a property and increase the yield. From what other investors have said there's probably an opportunity to buy something central with issues and fix those issues. Or new builds in the central city. NZ investors focus on gross yields which ignore maintenance budgets.

              Just don't expect the general property following herd to laud your investment sense until it's obvious in hindsight ;-)
              Free online Property Investment Course from iFindProperty, a residential investment property agency.

              Comment


              • #8
                Originally posted by Nick G View Post
                Confidence is down while population increases - the macro-factor is ideal for buying.

                On the micro-side, if you are going to buy there I'd put a premium on location right now. It's a subdued market, look in other cities what usually happens when it turns, central and well located properties go up first, then the rest follow.

                So I'd set a yield criteria and get into the best area where I can get close to that yield or better yet improve a property and increase the yield. From what other investors have said there's probably an opportunity to buy something central with issues and fix those issues. Or new builds in the central city. NZ investors focus on gross yields which ignore maintenance budgets.

                Just don't expect the general property following herd to laud your investment sense until it's obvious in hindsight ;-)
                until there's another earthquake?

                Comment


                • #9
                  Our 2nd and 3rd biggest cities are in seismic areas and the 1st is on a volcano. That's NZ for you.
                  Free online Property Investment Course from iFindProperty, a residential investment property agency.

                  Comment


                  • #10
                    Originally posted by newbie investor View Post
                    until there's another earthquake?
                    Most property owners ended up better off financially following the last earthquake (many people SIGNIFICANTLY better off).

                    I would expect the same again if there is another. Of course there are some exceptions and those are the stories that made the newspapers but I wouldn't let that put me off.

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