I give up

[Leftette]

Missed out on a reasonable buy because some other "who you know" investor with an RE mate got there on the same day it came to market.

The Auckland market is terrible. Extremely few good deals (where 'good' constitutes 6% gross these days) being chased by larger numbers of 'investors'.

Ever decreasing circles springs to mind.

I prefer not to be cf -ve, as you can only put up with a limited number of those before the daily caviar and wine allowance runs a bit thin. So instead I opt for larger deposit in order to break even. But that too has its problems.

Whine over. I shall await the burst with anticipation.

[Leftette]

Oh, and I should add that this investor prefers to eschew run-down, crap neighbourhoods, and only invests in places in which I could live. Not that I am terribly fussy.

[speights boy]

The Auckland market is terrible. Extremely few good deals (where 'good' constitutes 6% gross these days) being chased by larger numbers of 'investors'.

I agree.
It appears prices are being set by "investors" as they pile into the AKL capital gains market.
The Govt is too scared to change the tax rules and the foreign buying rules, so it is left to the RBNZ to try to limit the damage somewhat.

[Marc]

Why not invest outside of Auckland?

cheers,

[Leftette]

Prices aren't being set by investors at all. Investors are merely cleaning up the meagre scraps of reasoable deals that float around now & then. If you refer to those dirty Johnny Foreigners that are buying up property to shelter funds, well that's a different story. They are not what I would call 'investors'. Real investors cannot compete with someone intent on owning when it comes to price. Whether that owner intends to occupy is somewhat irrelevant in this current climate.

TV should interview me for my in-depth analysis, razor-sharp wit and devastating good looks.

[Leftette]

Marc - I already do. Took that plunge, once, years ago. Return isn't great and capital gain became a capital loss. Recovery has seen that turn around recently, but only just. I only keep it as it'll be a nice retirement bolt hole location.

And I like to do at least some maintenance, so prefer to be nearby.

[Damap]

It's posts like this that make me smile. I am glad you give up that means one less person to compete with. There are ALWAYS deals, you just have to work harder that's all.
Current example, not exactly a yield play but we have a house we are going to sell and want to replace in similar area but with views. It is a rental but a blue chip area. Most houses are selling at 20 to 30% ABOVE CV, (ISYN).
So rung my 3 favourite agents and started trolling Trademe, private sales only.
So far, admittedly after 20 to 30 hours online and emailing and phone calls, I have 5 possible houses all amazing locations but with some quirkiness in each deal.
3 were not for sale and 2 were on trademe. The most likely one is a 1.2mil street and an 800K buy.
I realise this is a higher price point but the principle is the same.
Work harder!

There are always deals, you have to cultivate relationships and pounce when they turn up. Looking where everybody else is looking will always be futile in a hot market

[Leftette]

Maintenance, of course, being the ability to point to the issue requiring amends and ensuring the tradesperson understands Queen's English.

[Leftette]

Yes, yes, Damap, I hear this argument often. But you've been very non-specific. What are the yield numbers on this 800k property? Truthfully, now.

[speights boy]

..... investor with an RE mate got there on the same day it came to market.

Prices aren't being set by investors at all. Investors are merely cleaning up the meagre scraps of reasonable deals that float around now & then.

Your two statements contradict each other

[Leftette]

No, they don't.

[speights boy]

Cleaning up the scraps suggests "leftovers, no one else wanted".
An investor bought first day on the market....they set the price for that property.

[Rosco]

Why not invest outside of Auckland?

cheers,

Problem with this is the capital gain is a lot less, and harder to predict. I recently checked up figures on a new house in Hamilton. 3% capital gain per year, over last 5 years. The median in Hamilton was only 1% per year over the last 5 years!

I hope Hamilton will take off, but it's not guaranteed. At some point the reserve bank will do something to slow the Auckland market and in the process kill other areas like Hamilton.

Taupo, Rotorua, Tokoroa, Wanganui etc, all seem to have no population growth, which must hurt their potential to grow!


The other issue, is will Auckland go down? Just with the huge demand, large immigration, growth predictions for next 30 years of another 1 million people in Auckland, I can't see the bubble bursting. Maybe it will go flat for a year or two when interest rates rise, but backwards?

Ross

[Leftette]

Then how about "quickly scoop up the (very few) good deals"? Possibly better wording (for the pedants).

[BlueSky]

The Auckland market is terrible. Extremely few good deals (where 'good' constitutes 6% gross these days) being chased by larger numbers of 'investors'.


.

I agree only so called "good deals" are run down 50 year old houses which asking 25-35 % premium on Cv. Its getting ridiculous. The basic investment fundamentals have gone out through the window and its all about "potential capital gain"

Out of curiosity which areas are you looking?.
Be patient Leftette, save up and be prepared when the next cycle comes which will be in 2 or 3 years.