Originally posted by elguapo
View Post
Announcement
Collapse
No announcement yet.
I am Nervous, No I am Scared
Collapse
X
-
Foreigner speculation rampant in Porirua!Free online Property Investment Course from iFindProperty, a residential investment property agency.
Comment
-
-
Originally posted by eri View Postbut well priced apartments in good buildings still go very FAST, as the market is pretty well educated...
Comment
-
Originally posted by elguapo View PostI do wonder if you have the same definition of cash flow positive that I do. 100% finance and all costs covered by the income. They just do not exist outside distressed markets.
2012, $206k at $320pw - 3bed in Clendon Park, South Auckland
2013, $170k 3bed in Rotorua - I don't remember the exact rent; maybe $260pw? But it covered it all.
2014, $200k 3bed in Lower Hutt, $310pw
2017, $720k in Auckland CBD, $1,220pw ($770pw 3bed + $400pw studio + $60pw carpark)
Some of them have been pretty close, but I always use an interest rate slightly higher than market available. Used to be 7%, but recently I've dropped to 5.5% or 6% as I don't actually believe rates will go up significantly anytime soon.AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
Comment
-
Originally posted by elguapo View PostI do wonder if you have the same definition of cash flow positive that I do. 100% finance and all costs covered by the income. They just do not exist outside distressed markets.
They're still there you just have to look.
A percect example in porirua lately 2x3br units in good condition sold for $350k.
Weekly rent $700 or $36.4k/yr
Rates roughly $3k
insurance roughly $2k
mortgage @ 6% $21k (int only)
property management $3.6k
maintenance $3k
cash flow positive $3.8k yr or $7.4k yr if you manage them yourself. This will more than cover principle repayments.
These units required no work, were insulated had new (ish) roof and recent(ish) external paint so the $3k annual maintenance is more than enough to cover big ticket items down the track.
The trademe advert doesn't read - cashflow positive at 100% finance they tend to read more along the lines of needs work, or renovators delight.
You're probably unlikely to get them in the best suburbs in the major cities but you certainly can get them in the Wellington region. I think Orion on this forum is still managing to buy CF+ properties up in the Hawkes Bay area and I bet other investors around the country can point out other locations.
Comment
-
Originally posted by Don't believe the Hype View PostYou're probably unlikely to get them in the best suburbs in the major cities but you certainly can get them in the Wellington region.
Comment
-
Originally posted by elguapo View PostThis is something of an understatement. Your renting your properties out for more than the cost of ownership, so you are either dealing with a market where the renters have zero credit rating or ability to raise a deposit, or a market that everyone expects to drop in value.
Comment
-
Oh this guy quite funny
but the majority of property investors are after a quick buck. They want to buy a property now, it to jump up in value $100,000, and then to sell so that they can reduce their personal house loan, or buy a fancy car, boat , holiday etc. Paying tax on a property gain scares these investors.
I would guess that 65% of property investors have negative cashflow,Last edited by donna; 31-10-2017, 11:16 AM.
Comment
-
Originally posted by mrsym0r View PostLet me guess : you didn't buy them in the last 3-4 yearsLast edited by Don't believe the Hype; 28-10-2017, 07:25 PM.
Comment
-
Originally posted by elguapo View PostThis is something of an understatement. Your renting your properties out for more than the cost of ownership, so you are either dealing with a market where the renters have zero credit rating or ability to raise a deposit, or a market that everyone expects to drop in value.
Comment
-
Originally posted by mrsym0r View PostLet me guess : you didn't buy them in the last 3-4 years
This is after capital expenditure needed to maintain income
Comment
-
Originally posted by Anthonyacat View PostUhh... I'm by no means a genius buyer, but I've never bought a property that didn't pay for itself at 100% finance. Interest, Rates, Insurance, and an allowance for maintenance - though I'll admit I've tended to underestimate maintenance, it's not significant in the big scheme. [EDIT: And PM fees at 7.5% + GST]
2012, $206k at $320pw - 3bed in Clendon Park, South Auckland
2013, $170k 3bed in Rotorua - I don't remember the exact rent; maybe $260pw? But it covered it all.
2014, $200k 3bed in Lower Hutt, $310pw
2017, $720k in Auckland CBD, $1,220pw ($770pw 3bed + $400pw studio + $60pw carpark)
Some of them have been pretty close, but I always use an interest rate slightly higher than market available. Used to be 7%, but recently I've dropped to 5.5% or 6% as I don't actually believe rates will go up significantly anytime soon.Facebook Property Chat Group NZ
https://www.facebook.com/groups/340682962758216/
Comment
Comment