Serviced Apartments

[eri]

possibly the average apartment dropped more than the average house

but the situation was a little unique with many who had put only $1000 down on conrad 2 bed apartments in 2006?

then using the 2 years guaranteed return of $400pw to cover the mortgage

the expectation was that rentals would continue at $400pw when the guarantee ran out

unfortunately the gfc slowed? the student? rental market and rentals dropped to $350pw

those owners who could afford to top up their mortgages for the lost $200 rent per month for 3? years

were rewarded for their patience with rents climbing back above $400pw last year

but many couldn't

and mortgage sales locked in losses of around $100,000? for people who could least afford it

...

conrad have just announced some new apartments in auckland

and if the world + auckland keep steaming along they should pan out well for investors

but if there is another black swan crash within the next 10? years

over-leveraged investors may cop similar losses

[BlueSky]

Thanks Eri. in your opinion, which apartment building(s) will be most desirable and a good long term investment?

[eri]

not in the market at the moment

so not looking at the cost vs benefit equations

but i if i was

i'd be looking closely at the queens square development + the st james apartments

if real estate is location, location, location

they are a better location than sugartree 3

still like connaught + towerhill too

locking in off the plan, on something yet to be built

seems too much risk when newish tried and tested apartments are available in good/better? locations

cheaper

[elguapo]

people said they had no capital gain

but actually apartments bought well 2008 - 2012 are up around 100% in 2015

Apartments are cyclical. You need to be careful about how you buy, 2008-2010 would have been good buying, now not so much. Supply can crank up much more quickly, will be interesting to see if they can sustain all the new builds coming online in a couple of years.

[speights boy]

Thanks Eri. in your opinion, which apartment building(s) will be most desirable and a good long term investment?

i'd be looking closely at the queens square development + the st james apartments
if real estate is location, location, location.....

You may have to be quick BlueSky.

Some people say we must build more because it's ALL about supply.
They ignore the demand side, even though we intensively market these new builds to foreigners attracted by this country's easy access.

Colliers' Chinese ad for Auckland apartments talks up soft rules: 'NO stamp duties and property purchase tax, NO capital gains tax'

New Zealand's lack of overseas investment regulation is being promoted in Shanghai and Hong Kong to help sell apartments rising on the site of the country's best-known record store.

"NO stamp duties and property purchase tax, NO capital gains tax on residential property if sold after two years of holding," Colliers International says advertising Queens Square, a 226-unit block promoted as on "the Nanjing Road of Auckland" and to rise on Real Groovy's Queen St site near Karangahape Rd.

This country's liberal regime, unusual internationally, is being promoted in that ad for the block by New Zealand developer Robert Holden's Conrad Properties

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11483627

[BlueSky]

You may have to be quick BlueSky.

Some people say we must build more because it's ALL about supply.
They ignore the demand side, even though we intensively market these new builds to foreigners attracted by this country's easy access.

Colliers' Chinese ad for Auckland apartments talks up soft rules: 'NO stamp duties and property purchase tax, NO capital gains tax'

http://www.nzherald.co.nz/business/n...ectid=11483627

Totally agree SB, I have being looking for the last 24 months mainly focussed on the returns and not so much capital gain- I think of it as a bonus.
The market is so much overpriced and looking at who is actually buying I think its pre GFC all over again.
Its all based on speculation which is dangerous for anyone local as I fear should China go bad and they cannot settle there will be a lot of pain.