This is a very good article dissing the latest South Auckland property investing trend of illegally converting garages to extra rooms.
I must say I totally agree with this gentleman. A well written article.
read the full article here
"Prospective investors read books and attend seminars were gurus explain to them how to get rich in property in five minutes and with no effort. These bright eyed souls are the ones who then race around South Auckland seeking to jam as may people as possible into the cheapest property they can find. But what works perfectly in a power point presentation on stage isn’t always what works in real life.
Typically the victim is a perfectly good full site, road front, and three bedroom home with a double garage. Right now any rental manager with breath in their body could let that property for $380-400 per week. Assuming you paid something like $270-290,000 then you come out with a 7.5 % gross yield. I’ve been in this game awhile now and investment agents will tell you seven and a half has been the average yield for many years. Rents move as the market moves. This property has the widest possible tenant pool and any owner can have their pick of the very best tenants. Moreover, when you go to cash in your investment you likewise have biggest buyer pool, including home owners, from which to realise your capital gain.
However, you have just read chapter four of “Unlock Your Destiny and Riches Through South Auckland Property Investment” . It has been revealed to you that is was perfectly fine to whack up some internal walls and throw down some discount carpet and bingo-go what was a 2.1 stud, galvanised shed is now perfectly suitable accommodation for a family. With your destiny well and truly unlocked you can call it five bedrooms and get a whooping $540 plus per week. Imagine how wonderful it will be to tell all your mates about your ten percent plus yield investment property."
Shane
I must say I totally agree with this gentleman. A well written article.
read the full article here
"Prospective investors read books and attend seminars were gurus explain to them how to get rich in property in five minutes and with no effort. These bright eyed souls are the ones who then race around South Auckland seeking to jam as may people as possible into the cheapest property they can find. But what works perfectly in a power point presentation on stage isn’t always what works in real life.
Typically the victim is a perfectly good full site, road front, and three bedroom home with a double garage. Right now any rental manager with breath in their body could let that property for $380-400 per week. Assuming you paid something like $270-290,000 then you come out with a 7.5 % gross yield. I’ve been in this game awhile now and investment agents will tell you seven and a half has been the average yield for many years. Rents move as the market moves. This property has the widest possible tenant pool and any owner can have their pick of the very best tenants. Moreover, when you go to cash in your investment you likewise have biggest buyer pool, including home owners, from which to realise your capital gain.
However, you have just read chapter four of “Unlock Your Destiny and Riches Through South Auckland Property Investment” . It has been revealed to you that is was perfectly fine to whack up some internal walls and throw down some discount carpet and bingo-go what was a 2.1 stud, galvanised shed is now perfectly suitable accommodation for a family. With your destiny well and truly unlocked you can call it five bedrooms and get a whooping $540 plus per week. Imagine how wonderful it will be to tell all your mates about your ten percent plus yield investment property."
Shane
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