Just arrived and new to PI

[jules]

Hi,

I have recently arrived in NZ from working overseas and originally from UK.

I have not really invested in property for income before and was hoping for a few pointers to get started.

Although I am living in Auckland I am thinking about buying properties in other NZ locations, partly to take advantage of the lower prices. Can anyone give advice on how to check out others areas for investment and comment on the pro's/cons of doing this.

Thanks

Jules

[Marc]

Hi Jules !

Welcome to PT.

First off have a look around this web site - look at the articles section to get a feel of finance, trusts, structures, NZ facts etc... Also have a look at the Get Linked ! forum down below.

There are also other threads in this forum which may help you as well.

Also read these awesome threads on propertyinvesting web site

http://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=4541

There is another great thread on the same site called NZ Suburbs - I can't find it cos the search tool on the site is very slow.

Any more questions please post anytime!

Best Regards

Marc[/url]

[Noddies]

Hi Jules
Reading beteen the lines I gather that you have some experience with negative geared property and little or no experience with positive geared property.
Both are relevant in order to gain a balanced property portfolio. Investigating other asset classes such as shares etc, may also be another option.
Self Managed Super Funds should also be looked at in order to obtain maximum returns from them.
As a property Consultant I am listing for your information the differences between negative and positive strategies.

Negative -
-Must be growth oriented
-Usually higher priced
-Lower rental returns -<5%
-Need to be backed up by cash flow or income
-Accelerate equity growth in portfolio quickly
-Careful reaserch & selection of areas needed
-Will flatten out in time
-Usually residential properties in good locations
-Low risk
-Will produce tax credits

Positive -
-produces income
-Usually lower priced residential or 2nd hand residential property
-Usually low growth -<3%
-Higher rental returns ->6-15%
-Help produce income needed to subsidise high growth properties
-Will eventually grow
-Can fall in value in poor times
-Can include semi residential & commercial properties
-Higher risk
-Income Taxable

I hope this general information is of assistance to you

Regards
Bryce Inglis
[email protected]

https://www.ipal.com.au

[LeanneS]

In the UK I suggest doing lots of research first but in NZ I think its cool to just go and drive.

When I was in NZ recently I drove down to Tauranga with a view to talking to estate agents, viewing properties etc. Got to Tauranga, nothing really looked promising, couldn't find a place to park near an EA ... drove on to Mt Maunganui (which is such a delightful place) and talked to 3-4 EA and a letting agent. Got taken to 3 gorgeous properties in Papamoa ... blah blah blah.

As long as you realise that EA has an ulterior motive you can get a lot of information out of them, especially if you speak to several in one area. Take the property newspapers, take the lettings list to get an idea of rents you can achieve.

Then go home and read over the property papers, your own notes, and the properties you have looked at, and decide if this is the way forward for you.

btw - this is such a fun way to spend a day!