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  • My first investment Options available.

    Hi
    Appreciate your expert views or personal opinion for the investment options available to choose.
    I'm newbie investor looking to buy my first IP before October 2021. Only, looking at Brand New homes as they are hassle free and tax exemptions, 5 yrs bright line test options are appealing. My immediate goals are stable rental income and agree the current reality positive cash flow is not easy. Best possible equity gains in 5 yrs of time.

    Options I've:
    Waiuku - 70 KM to Auckland, Franklin region. After Pokeno and Pukekhohe, Glenbrook Waiuku will be in reach. The Option I've got to consider is Brand New 150 built area and land size of 420 sq.m. standard builder and $780k for a 4 Bedroom. Expected Rental around $600 per week. What I'm not sure is rental demand in this area to meet my stable rental income expectation. Timelines wise will be ready in 6 months time once, finance sorted.

    Wellington -Upper Hutt, Standard Terrace Home, End property 140 sq.mt built area and 200 Land area. 3 bedroom 2 bath option on Two levels for $810k. Rental wise Wellington is always high in demand. Can expect around $650 per week rent. But, I am not sure about Equity gains given this is Terraced house and not a big sized section. However, I live in Wellington and property maintenance wise it would be easier.

    Rolleston Christchurch- Around 4680k-700k for a standard build single level 3 bedroom home and section size would be around 450 sq.mtrs. Massive infrastructure planned for Rolleston, new mall, health Centre etc and connectivity to Christchurch. Expected rents per week $580. Rental demand is good based on my conversation with local property management agent. As the price now is reasonable the hope is roam to get good equity gains over 5 yrs.

    Any suggestions? I understand that opinions are personal and not expert advises and all I'm trying to do is to get different views from seasoned investors who're in this game longer than me and have subject matter expertise, to take informed decision.

    Thanks
    Ram

  • #2
    Originally posted by rmalapati View Post
    Hi
    Appreciate your expert views or personal opinion for the investment options available to choose.
    I'm newbie investor looking to buy my first IP before October 2021. Only, looking at Brand New homes as they are hassle free and tax exemptions, 5 yrs bright line test options are appealing. My immediate goals are stable rental income and agree the current reality positive cash flow is not easy. Best possible equity gains in 5 yrs of time.

    Options I've:
    Waiuku - 70 KM to Auckland, Franklin region. After Pokeno and Pukekhohe, Glenbrook Waiuku will be in reach. The Option I've got to consider is Brand New 150 built area and land size of 420 sq.m. standard builder and $780k for a 4 Bedroom. Expected Rental around $600 per week. What I'm not sure is rental demand in this area to meet my stable rental income expectation. Timelines wise will be ready in 6 months time once, finance sorted.

    Wellington -Upper Hutt, Standard Terrace Home, End property 140 sq.mt built area and 200 Land area. 3 bedroom 2 bath option on Two levels for $810k. Rental wise Wellington is always high in demand. Can expect around $650 per week rent. But, I am not sure about Equity gains given this is Terraced house and not a big sized section. However, I live in Wellington and property maintenance wise it would be easier.

    Rolleston Christchurch- Around 4680k-700k for a standard build single level 3 bedroom home and section size would be around 450 sq.mtrs. Massive infrastructure planned for Rolleston, new mall, health Centre etc and connectivity to Christchurch. Expected rents per week $580. Rental demand is good based on my conversation with local property management agent. As the price now is reasonable the hope is roam to get good equity gains over 5 yrs.

    Any suggestions? I understand that opinions are personal and not expert advises and all I'm trying to do is to get different views from seasoned investors who're in this game longer than me and have subject matter expertise, to take informed decision.

    Thanks
    Ram
    Personally I would choose Auckland as the majority of growth is there. As for Waiuku it is a fair way out but still some money to be made out there. My guess would be get in there before everyone else does. Pukekohe/pokeno already going off.
    "DEBT BECOMES IRRELEVANT WITH INFLATION".

    Comment


    • #3
      Just a thought - Kapiti 50km north of Wellington is worth a look.

      Growing population as Wgntians move out there.
      Land for development along the Expressway and Transmission Gully due to open in a few months time.
      So easy commute to Wellington, nice climate, etc.

      I'd choose Kapiti over Upper Hutt any day. It's a much nicer area etc.

      I am biased though as I do live here.

      cheers,

      Donna
      SEARCH PropertyTalk, About PropertyTalk

      BusinessBlogs - the best business articles are found here

      Comment


      • #4
        Originally posted by donna View Post
        Just a thought - Kapiti 50km north of Wellington is worth a look.

        Growing population as Wgntians move out there.
        Land for development along the Expressway and Transmission Gully due to open in a few months time.
        So easy commute to Wellington, nice climate, etc.

        I'd choose Kapiti over Upper Hutt any day. It's a much nicer area etc.

        I am biased though as I do live here.

        cheers,

        Donna
        Thanks Donna,
        Kapiti is out of reach already any brand new is more than $900-950k mark, I live in wellington CBD suburb and I do agree that kapiti is more desirable area to live with well connected train network to city, views, beaches etc. ATM zi feel Levin, Otaki seems to be in reach and have scope to grow. $650k-700k mark for a brand new 3 bed room once the transmission gully is finished i hope the travel time would be 1 hr. to Wellington city.

        Comment


        • #5
          Wait till winter next year when OCR starts rising and all these new builds are flooding the country.

          Comment


          • #6
            Originally posted by Bluekiwi View Post
            Wait till winter next year when OCR starts rising and all these new builds are flooding the country.
            And thats when you will be able to pick up some of the overpriced townhouses/apartments etc for under cost as the investors run for cover as the forward outlook will look much bleaker..prob more so 2023 ...as the pain becomes to much to hold as all rates head over 3%

            Comment


            • #7
              Yep, sometimes you make more money by sitting on your hands doing nothing.

              Comment


              • #8
                ^^ but then it won’t be a new build and won’t have 5 year bright line and tax deductible interest?

                cheers

                Donna
                SEARCH PropertyTalk, About PropertyTalk

                BusinessBlogs - the best business articles are found here

                Comment


                • #9
                  Originally posted by JBM View Post

                  [...] as the investors run for cover as the forward outlook will look much bleaker..prob more so 2023 ...as the pain becomes to much to hold as all rates head over 3%

                  Reading some commentaries, notably Tony Alexander views, investors are not selling - at least not in large quantities - but they are also not buying. Beyond yields which are very low the concern is indeed the prospect of rising interest rates which would further reduce net yield. There is also concern about the progressive loss of interest tax deductibility and how that will affect cash flow.

                  As to where to buy I agree with rmalapati, Kapiti is pricey. Levin looks better at this time for yields.

                  Comment


                  • #10
                    New build spruikers are inundating with their adverts and posts

                    Units were selling at around $450-550K in chch over a year ago now been advertised in late $600K
                    Lot of newbies on the facebook investors chat group were clambering over each other to buy, large subdivisions are popping everywhere.
                    None of them have seen the damage high inflation and interest rate rises can do
                    https://www.stats.govt.nz/topics/building

                    Lot of them are targeting the unsuspecting newbies even old-timers are back.
                    Last edited by donna; 30-06-2021, 04:23 PM. Reason: Removed link as not offering any value i.e. linking to the tag of a name on a security-risk site

                    Comment


                    • #11
                      ^^ New build consents.

                      Auckland - over 18K April 2021 vs 14.7K April 2020 (+3.5K)
                      Christchurch - 6.3K vs 5.4K. (+900)
                      Waikato - 4.3K vs 4.2K (+100)

                      Welington 3.2K vs 3.1K (+45)

                      Not a lot of new-build activity going on in the capital and outer areas (Hutt, Kapiti) etc.

                      cheers,

                      Donna
                      The actual number of new dwellings consented was 42,848 in the year ended April 2021, up 15 percent from the April 2020 year.
                      SEARCH PropertyTalk, About PropertyTalk

                      BusinessBlogs - the best business articles are found here

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