Invest on apartment

[Korg]

First day back to work

Hope you guys had a great holiday--Never long enough though

We have been thinking about our first invest property for a fairly long time. Read posts on the forum, did calculations....hardly to find positive cash flow property. We have read an article on Investor mangazine about apartments investment, it seems apartment is still a good choice for investment, but the writter mentioned the price for Auckland apartment will further drop down around later this year-2007.

I am kind of delemma at this stage, we will worry about profolio if we make the wrong decision on our 2nd property, that's our 1st investment property.

Do you guys believe apartment still will be showing capital loss?

[shahil.nazia]

i've read that many auckland apartments are at high risk of capital depreciation in the short-medium term. I was also looking at these "cash-cows" (or so advertised by most RE agents) at one point but after much pondering and even more research came to the conclusion that there were much better cash-flow opportunities elsewhere. Take a look at Invercargill for instance ;-)

hope it helps
shahil

[Josko]

Hello Korg,

It relay depends on the quality of your purchase, the main thing that I like about apartments is the type of tenant for the price bracket of the investment, this combined has served me well in my first purchase. Admittedly it was not a City Apartment, my second IP in the City just sold for 12.5k more then what I bought it for 4 weeks earlier. It didn't have a car park (one of my rules) so I sold it.

As long as you are buying in a quality building you won’t go wrong, I don’t look at anything that is less then 50m2.

Good Luck!

[whitt]

There has been some good discussions in these forums on aratment market.
Have a search through a few old threads also and you will find some gems.
eg. Things to take into account.
-freehold or leasehold, ground lease payments
-quality
-size. shoebox or not
-Body corps
-number of bedrooms
-Location in CBD
-Carparking

Have you read the Auckland Apartment market report by Keiran Trass? It is a huge report on everything .

[Korg]

Thanks guys, really appreciate your suggestions.

What we concern at the moment is the whole profolio, coz the property we are going to buy gonna be the 1st investment property, if we look the whole pie, positive cash flow is a essential aspect to affect your finacial situation for your future investment, in anther word, if it appears to negative gear for your 1st IP, it ganna be hard for us to get the loan from the banks.

Please correct me if I am wrong.