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?
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Looking at Christchurch
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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.
RossBook a free chat here
Ross Barnett - Property Accountant
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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.
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Quantum Strategic in Christchurch
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. !Last edited by Orkibi; 26-08-2015, 06:28 PM.New Zealand's #1 Marketplace for Property Investors & Sellers!
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Here they are: http://www.q28.co.nz/
i forgot to mention that new builds and speck housing slowed down significantly in Christchurch.New Zealand's #1 Marketplace for Property Investors & Sellers!
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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.
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