Buying property in Meremere

[Frezzinghot]

I wouldn’t buy outside the main centres or some regional centres with good fundamentals

Mathew Gillian has some good tips to share on this

[Frezzinghot]

I wouldn’t buy outside the main centres or some regional centres with good fundamentals

[Frezzinghot]

Graham sold off half his portfolio due to cashflow issues.

True wealth is earned with time.

That’s interesting Jeffa, his mantra has always been a P&I strategy and buying 20% below market value, I guess you can only buy so much property before this becomes unaffordable.

[Jeffa]

How are you going to make money off the purchase?

Hold and pray for capital gains is a risky game.
Especially in one horse towns surrounded by plenty of land.

Can you rennovate and raise rent enough to cover all costs plus principal repayments - so that eventually you own it?
Can you subdivide the section? How long will it take until it can blow it's own nose? 10years?
Read some of Graham Fowlers sensible advice before losing your shirt.

Graham sold off half his portfolio due to cashflow issues.

True wealth is earned with time.

[PC]

How are you going to make money off the purchase?

Hold and pray for capital gains is a risky game.
Especially in one horse towns surrounded by plenty of land.

Can you rennovate and raise rent enough to cover all costs plus principal repayments - so that eventually you own it?
Can you subdivide the section? How long will it take until it can blow it's own nose? 10years?
Read some of Graham Fowlers sensible advice before losing your shirt.

[Jeffa]

If this is all your budget can afford I recommend you take it, however.

Don't expect the same capital growth as the rest of South Auckland, There is an abundance of land there so sub divisions are bound to keep popping up pushing down house price growth as well as being so far from the CBD.

House prices tend to double every 7 year's in Central Auckland, 8 in South Auckland Papakura Mangere Manurewa and 9 to 10 years South of Auckland Waiuku, Pukekohe,Pokeno,



But if your not looking at fast capital growth, yes like most semi rural areas it's great for bringing up a family.

[Maxi]

Hi Frezzinghot,
Based on my research, meremere is not too bad live, it's a small village just beside the motorway so about just 30-40 min. Drive to south auckland where I work depending on the traffic. With the industrial and residential development in Pokeno which is a few kms away, and I've read that Tata Valley and Havelock is planned to done in between Pokeno and Mercer, I am thinking there might be additional housing or developments to be done towards meremere in future. The main thing that attracts me is house price which generally a lot cheaper than the houses in villages few kilometers away. I would say 200k-300k cheaper. Most probably because there's no shopping center.

[Frezzinghot]

Have you done your research on meremere? Have you beat the streets?

[chook]

What say values have dropped after a year, and interest rates have gone up?

i am not saying this will happen, BUT we are at the end of a HOT (very hot) market run and the possibility that prices may flatline or drop are now high, so you have to consider these things. Dont take unwanted risks if you cant afford too.

[hawkeye]

Are you going to live there? If not maybe it’s not a good time to be a first time landlord.
if it’s your first house it might be better to instead just put more into kiwisaver if you have it in a growth fund and wait until the share price is at a high point to cash in and buy a house. You can’t predict when that will be but at some point it will be at a high point and at least you will have kept up with inflation.then you can stay living where you want to live without worrying about inflation eating away at your savings.

[Maxi]

Hi pc,
Are you saying meremere is a crappy location? Why?

[PC]

Buy in the crappiest location at the top of the market? Yeah, what could possibly go wrong...

[Perry]

What? Prices go down? What are you saying, you scurvy knave?

[Maxi]

Hi chook,
Does it mean it's better for me wait a bit then buy a house if the prices goes down.

[chook]

What say values have dropped after a year, and interest rates have gone up?