Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

is there ANYTHING worth buying?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • is there ANYTHING worth buying?

    With interest rates pegged to return to pre-covid levels in the next 18 months, and our delightful govt making interest costs taxable, I wonder if there's anything at all worth buying?

    I looked at some townhouses in Te Atatu Peninsula this week. $910,000 for a 3 bedroom/2 bathroom dwelling, 85sqm section, 3 storey with 2 off street carparks. Market rent is about $600 a week, which would already be cashflow negative on an interest only loan once insurance/management/rates are factored in. If (and when) interest rates return to 4% it would need to be topped up in the region of $18,000 a year - I cannot foresee market rent reaching that level in that timeframe. Interestingly the townhouses have been marketed for over a month with very little interest and sales.

    Is anyone adding to their portfolios currently - or is the smart money waiting to see what happens next?

  • #2
    Yeah well, the 'flippers' (buy, renovate and sell) crowd are making $$ - but you do have to wonder about the buy & hold investors.

    cheers,

    Donna
    Email Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk


    BusinessBlogs - the best business articles are found here

    Comment


    • #3
      IMO, there is very little out there, buying new is a waste of time as cost of materials skyrocket, buying existing is the only way you will find any great deals. The fundamentals of buying below market (not easy in this environment) and manufacturing value still holds true. I am looking for cashflow, if I can't find it, I keep looking until I do. Problem is in this market vendors expectations are high, and rightly so, all this talk about price increases make one greedy.

      Look for existing as you at least have bargaining power if the property is in need of a good clean up. The cost to build IMO is just too high at the moment.
      "DEBT BECOMES IRRELEVANT WITH INFLATION".

      Comment


      • #4
        If NZ is now unattractive - what about overseas?
        Bit difficult to inspect the properties though...
        The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

        Comment


        • #5
          ^^ NZ is just like the other western countries with high property values etc. However if you can do it there might be opps in UK as the Govt is rolling out thousands of new houses - yeah odd they know how to it shame we don’t.

          cheers

          Donna
          Email Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk


          BusinessBlogs - the best business articles are found here

          Comment


          • #6
            Developing existing sites to get more rental units is working quite well for us at the moment on the north shore. Nice capital gains as well. Only way I can see how you can get a high yield residential , low maintenance, and blue chip location in Auckland. Ticks boxes. I think a lot of people are active in the market but are keeping their heads below the parapet, investors are not exactly the flavour of the month in NZ. Hopefully the government keeps itself busy with screwing somebody else, the supermarkets for example.

            Comment

            Working...
            X