Looking at Christchurch

[nzbayleys]

We are just looking to start on our property investment journey and have been talking with the team at Quantum Strategic in Christchurch. Has anyone had dealings with this consortium or have a view on investing in new builds in the Christchurch area?

[Damap]

Don't do it. CHCH is on the turn and it's not pretty. NOTE I am admittedly very biased but this will get the discussion going. But I am seriously saying don;t do it. Go north where the people are.

[andyp2010]

Damap - seconded by a Chch centric, chch loving investor. Wait for the devastation, it can't be too far.....

[Damap]

It's so sad for such a great city. The delays, admittedly not surprising given the severity of events, has just devastated the place really. I pray it comes back again but will take a while I reckon.

[nzbayleys]

Andy - have you heard of Quantum Strategic? They're CHC based and have pulled together financial investment advisor, analysts, accountant, lawyer and property manager as part of a total package approach.

[Rosco]

Hi NZbayleys,

Be careful of the whole package. They are probably getting a $20k commission for selling investment properties, so large incentive for them to sell. In a good market you can do alright on these, as long as you are paying fair market value, and not fair market plus $20k. But you are probably better doing this yourself, joining your local NZPIF organisation, going through how it all works with a Chartered Accountant who specialises in property and taking your time!

- you want to get independent accounting advice, ie I often tell my clients its a 'sh..' deal, or the cashflow is bad, or they can do better. If the accountant is part of the group, they won't say something bad to ruin the deal
- you need independent legal advice
- get an appraisal from an independent property manager to ensure the rents are fair
- if buying a new townhouse or something similar, get your own, independent valuation. Don't rely on the developers one

Financial investment advisor, often = sales person

As others have put above, I would be looking at other area's as their is a risk to Christchurch, especially for a newbie.

Ross

[andyp2010]

Thats the team i pull together for myself, except im the analyst. If youre certain you want to buy in chch, right now, youre more than welcome to pop over to mine, have a cuppa and do a few open homes one weekend. Ill even give you the contact details for the shit hot team ive got together. I wouldnt be selling you anything, it just pains me to watch someone fall for a salesman's pitch.

[Wayne]

At the very least - get your own lawyer!!!!!!!!!!!!!

[Damap]

It would be reasonable to assume NZB is trolling and probably is the above mentioned company......

[elguapo]

Andy - have you heard of Quantum Strategic? .

The question I have is are they really both Quantum and Strategic? Or are they perhaps Quantumly Strategic?

I have lost sleep not being able to answer this.

[andyp2010]

A little bit strategic. Not fully. But somewhat.

Good naming

[Orkibi]

Quantum Strategic in Christchurch

Never heard of them, but im not in Chch all the time.

do you live in Chch??

I started in Chch and released that im wasting my time with capital growth and small market. then i moved to investing and trading in Auckland.... and never looked back.

Saying that, i currently have a project in Chch which is a do up... not much EQ damage and was reasonably good buy with good solid Brick and tile bones.
The market there slow down now and rents dropped in some places... So we must watch for not over capitalizing buy even 5k-10k... Auckland much more forgiving..

I own a 1012m2 medium density land (can build 6 units on it) there which i purchased back in 2007 for 380k, and it was "good deal" at a discount then.
2010 it was worth what i paid for it, now its around 550k. its in inner city suburb.

In AKL same property would be worth well over a million. Ie. Purchased one in Glen Eden 2013 for 380k, (it was worth 450k then) now its worth 800k.

thees companies try to sell new build, but low yielding (you will have to prop them up unless your LVR is 50%) at discount of 5%-10%. this is essay to do in any market.
In Chch you will wait 15-20 years ti see any gains from this type of investment.

i know few people made A LOT of money in chch after the EQ but they are seasoned investors or builders with boots on the ground who took advantage of the opportunities.
Not much opportunities left in chc, many insurance claims have settled and the supply is back slowing the market.

i wouldn't buy anything there as long term hold unless it has amazing cash flow and at list 30% equity upside at the right side of town.
Ha, and it must have insurance. !

[Orkibi]

Here they are: http://www.q28.co.nz/
i forgot to mention that new builds and speck housing slowed down significantly in Christchurch.

[nzbayleys]

Thanks all for your advice. I'm comfortable with the Quantum model and the team that have gathered around the company. We had plenty of opportunity to use our own lawyer, accountant etc and our research showed there was adequate autonomy not to be dodgy. I'll continue learning and researching the market before making a decision.

[andyp2010]

Sigh. Hope it is spam