Positive Geared Properties

[Fatch]

I was wondering where in NZ there are positive geared properties? I know there are some in Dunedin, does anyone else know of where in this country I could find properties like this?

Thanks in advance,

Adrian
[email protected]

[Marc]

Hello !
There are a couple of threads on this web site but most places in the North Island have cashflow IP's - Christchurch is also a good in the South Island - also try outside Auckland, Hamilton, Kapiti, Taupo.. the list goes on and on...

tell us how much $$ you want to spend.

Best Regards

Marc

[mjj]

Positively Geared Properties -0 to 130 Properties in 3.5 yrs

I have finised reading Steve McKnights book - the main issue I see in accumulating that many positive cashflow properties is finding a location that would have some capital growth and managing the large number of transitory tenants - Auckland would be hard, however I think Hamilton and surrounds is probably a better bet. One thing the book doesn't deal with well is structuring the finance to support this type of investment.

Interested in ideas on accumulating positive cashflow proerties in NZ.

[RentMaster]

You can definately get positive cash flow properties in Auckland. All my properties are in Auckland, and all positive cash flow.

The best places to look are south or west Auckland. The further away from the city, the cheaper they get. They are not as cheap as the rural or smaller towns, but the theory anyway is that Auckland always seems to have the highest capital growth long term.

[LeanneS]

I would not buy a property which was not cashflow positive!

All my properties are in Auckland - I think you can buy postiive cf properties anywhere if you get the right deal, although some of the more upmarket areas might require a higher deposit to break even.

I realise that if a property grows $20,000 in a year it doesn't really matter if you have to sub the rent but to me (a la Robert Kiyosaki) an asset is something that puts money into your pocket and a liability is something that takes money out of your pocket. I already have enough liabilities, thank you.

My 2 cents,
Leanne

[tamara]

Hi

I too own property in auckland especially in the deep south. Cashflow positive can be found but at the moment you need to have everything in place so that you can put your offer in, deposit available etc because properties are selling fast. I have just arrived in nz from brunei where i live and places are selling fast in the places i have looked.

Tamara

[belgarath]

Man there are some really old threads in here!

[muppet]

Why are you searching?

[belgarath]

I have a lot to learn still muppet and this is a great way to get great advice from people who have been in the game longer than I have! Thats why..

[ecoeco]

Also, if anyone is interested in 2009 vs 2003 - you can buy cashflow positive properties in Wellington and Auckland again. We've gotten hold of several in the last six months, spread across both cities. We buy in south Auckland and city fringe Wgtn.

[drelly]

Hi ecoeco,

Can you give numbers on the properties you bought?

[ecoeco]

Hi ecoeco,

Can you give numbers on the properties you bought?

Happy to give a couple of examples in round numbers. I don't especially want my deals identified and New Zealand is a very small place

Property 1 (akl - house):
Purchase: 510,000
Rental: $780
Gross yield: 8%
Loan payments: $705 per week (6%, 30yr P & I)
Gross cash surplus per annum: $3,600
Insurance: $500 (this is a little light in hindsight)
Rates: $1900
Maintenance (short term): $1,000
Maintenance (long term): $1,000
Net surplus: $0


Property 2 (wgtn - flats):
Purchase: 380,000
Rental: $650
Gross yield: 8.9%
Loan payments: $525 per week (6%, 30yr P & I)
Gross cash suprlus per annum: $6,500
Insurance: $700
Rates: $1700
Maintenance (short term): $1,000
Maintenance (long term): $1,000
Net surplus: $lots

Both of these I hope to move onto 5 or 7 year fixed rates at 5.5% or lower during 2009. This will change property 1 into a positive property and make property 2 even better. Property 1 should do much better in terms of capital gain than property 2.

Interestingly we have found 10%+ gross return properties hard to find in good locations in both cities. I am willing to give up a % or two in gross return to buy in locations which will be easy to rent.

[muppet]

Do these costs include water rates and environmental rates?

[ecoeco]

Do these costs include water rates and environmental rates?

Akl - water to be paid by the tenants
Wgtn - rates include water

What are environmental rates?

Akl - rates include allowance for seperate ARC rates
Wgtn - rates include WRC rates.

[muppet]

Thank you.