Commercial finance

[Bobsyouruncle]

Well maybe you are Hype :-)

[Davo36]

I am not a agent. ..all I know is properties like
4343 Great North Rd Glendene Auckland were offered to me ...call Simon Child Colliers 358 1888 I passed it on to my mate who brought it ...10pc net yield ...
As I always say higher yield higher risk but they do sell at 10pc yield ...I purchased last year a lessors interest that now yields 6.4pc net ...but you can't compare a lessors interest with a property with a property that depreciates and has risk of vacancies and non payment of rents
My next door neighbour in wgton was wanting 11pc net
Not certain what he sold it for ...44 Wainui Rd Seaview

Hi Beano, yes with 4343 Great North Rd Glendene Auckland I can see how that might sell on a high yield for various reasons. I looked at it just now on Google maps and interestingly you can still see the for sale sign there - since Google only update it every so often. Did your friend buy one unit there, or the whole lot?

If that other one in Seaview is/was available at 11pc why didn't you buy it?

[Beano]

Hi Beano, yes with 4343 Great North Rd Glendene Auckland I can see how that might sell on a high yield for various reasons. I looked at it just now on Google maps and interestingly you can still see the for sale sign there - since Google only update it every so often. Did your friend buy one unit there, or the whole lot?

If that other one in Seaview is/was available at 11pc why didn't you buy it?

It was just part of the whole site ...unit title with bc ...the yield he got is actually over 10pc as the site was managed. ..fees charged to the tenant ...he has taken over the management
I have switched to lessors interest (although substantially lower yield) ...no depreciation, no maintenance , virtually no management, and sadly no vacancies. (You can take over the building in the event of default ...generally the bank will pay to avoid cancelation of the lease )

[Don't believe the Hype]

Interesting.

You generally have sensible things to say (IMHO) DBTH. And I think you write quite differently to Beano, so not the same person as far as I can see.

I have met many people who set these kinds of goals. And it's often because they can't stand the idea of doing nothing, not achieving, not constantly striving for the next goal.

And so I always wonder why these people can't be comfortable in their own skins, with what they have. What's wrong with sitting around doing nothing if you've earned the income to be able to do so?

Of course it's very difficult to do nothing. But there are many things that can be done that don't involve making money.

Here's a few which I may or may not do, and may or may not value:

Raising a family - spending time with young kids.
Learning things - this could be anything from playing a musical instrument, to a language, to computer skills etc. etc.
Charity Works - or other good works of various kinds.
Church Involvement - again, helping people, or just being a group of like minded people
Full time work - sometimes people decide that they actually want a job where they can be useful.
Environmental and/or conservation work - kinda comes under the good works thing again.
Philanthropy - if you're seriously wealthy, then you can spend all your time giving the money away e.g. Bill Gates.
Travelling - a lot of well off people like to see the world.


I guess if you enjoy doing property stuff then it would be a good thing to do.

Thanks Davo36.

You're right that it's not all about chasing $$$... the thing is that our plan allows us to chase those targets (especially when you consider the compounding effect of the investments we've made over the years) whilst giving us the freedom to do some of the things you've outlined.

Raising a family - Interestingly what we do now allows the flexibility to spend much more time with my wife and kids - My wife and I used to work for a large corporate - one of the worlds largest. We would alternate weeks in our regional head office meaning we'd fly up on a Monday home on a Friday we essentially lived single parents with the one left in our home location juggling work and parenting. We chose to pull the pin on that life with the No. 1 reason to spend more time with our family.

Learn Something - As a family we're learning Mandarin - thought it might come in handy in the years to come, especially for the kids

Travelling - With our passive income and flexibility on the work front we try to spend a month at a time (min) away from NZ. Might not make it this yr but planning 3 months in 2018

Charity/Conservation/Environment/Philanthropy - There will be a time for that but to be honest haven't done much on that front. I'm a big believer of charity beginning at home and i do my best to help out friends and family that need it.

Church stuff - Not in a million years... I have a pretty strong opinion on that topic which i'll keep to myself.

Full Time work - (defined as working for someone else) Never again, not on your life... for no reason ... ever!

[Nick G]

Nice. I agree particularly about the risk management and also when you hit a goal young what are you going to do, not work on anything? Some folks might jump into non investing projects, which is cool too.

For the doubters...
I've met DBTH, great guy, and Beano and I have a mutual friend and have messaged each other a few times, so the conspiracy theories are good for a laugh but way off.

[Davo36]

It was just part of the whole site ...unit title with bc ...the yield he got is actually over 10pc as the site was managed. ..fees charged to the tenant ...he has taken over the management
I have switched to lessors interest (although substantially lower yield) ...no depreciation, no maintenance , virtually no management, and sadly no vacancies. (You can take over the building in the event of default ...generally the bank will pay to avoid cancelation of the lease )

Thanks Beano.

Yes this whole lessors interest is interesting. I was wondering if you could take the building(s) in the even of default. Cool how the bank always steps up!

[Davo36]

Thanks Davo36.

You're right that it's not all about chasing $$$... the thing is that our plan allows us to chase those targets (especially when you consider the compounding effect of the investments we've made over the years) whilst giving us the freedom to do some of the things you've outlined.

Raising a family - Interestingly what we do now allows the flexibility to spend much more time with my wife and kids - My wife and I used to work for a large corporate - one of the worlds largest. We would alternate weeks in our regional head office meaning we'd fly up on a Monday home on a Friday we essentially lived single parents with the one left in our home location juggling work and parenting. We chose to pull the pin on that life with the No. 1 reason to spend more time with our family.

Learn Something - As a family we're learning Mandarin - thought it might come in handy in the years to come, especially for the kids

Travelling - With our passive income and flexibility on the work front we try to spend a month at a time (min) away from NZ. Might not make it this yr but planning 3 months in 2018

Charity/Conservation/Environment/Philanthropy - There will be a time for that but to be honest haven't done much on that front. I'm a big believer of charity beginning at home and i do my best to help out friends and family that need it.

Church stuff - Not in a million years... I have a pretty strong opinion on that topic which i'll keep to myself.

Full Time work - (defined as working for someone else) Never again, not on your life... for no reason ... ever!

Yeah property investing does allow for more time with the family.

I'm not a church person either, but plenty of people are I guess and if it helps them, and they don't push it on me, then that's OK by me.

I often think of getting a job again, but then I remember how I've done this in the past, enjoyed it for like 3 months, then gone out for a walk in the sunshine and been so crestfallen about having to go and sit in front of a screen again... so then I quit

[Beano]

Thanks Beano.

Yes this whole lessors interest is interesting. I was wondering if you could take the building(s) in the even of default. Cool how the bank always steps up!

In reality you could never take the building ...if it had aNY value. ..they would sell their interest
Yes two years in a row the Westpac bank paid me the rent including penalty interest !

[Davo36]

In reality you could never take the building ...if it had aNY value. ..they would sell their interest
Yes two years in a row the Westpac bank paid me the rent including penalty interest !

Right, OK, I understand.

Nice that Westpac had to pay up!

[JBM]

I would have 10mill income pa easy but first I need the banks to loan me 100-120mill !!!

....and it's that just the crux of become richer unless your a hollywood star or football player etc....

how much and at what terms will the lender lend you the funds ....Maybe I don't kiss enough ASS ...but the banks are like getting money from a dutchman most of the time... going try next week going through a broker to get tiny 300-400k loan for 10% net yield commercial property on 10yr fixed term lease ...will only take me to 50% LVR over all my debt to assets ..both westpac BNZ ASB did talk 8-9% rates 15yr payback which is a Joke over the last year or so when I approached them ....see what a broker can do for me

--total gross income easy cover loan interest by over 4 times after taking out living costs @ 4.5% ....

When I read on here and mags etc kiwis being able to build up muti million property portfolios from pretty average incomes >> man I just don't get it

[Davo36]

When I read on here and mags etc kiwis being able to build up muti million property portfolios from pretty average incomes >> man I just don't get it

Well getting money is hard just now, but is often very easy during upward swings. Especially if both in the couple have good jobs as well? Are you self employed?

And where is this property? A smaller town I'm guessing? That might be part of the reason for finding it difficult to get finance?

[JBM]

Well getting money is hard just now, but is often very easy during upward swings. Especially if both in the couple have good jobs as well? Are you self employed?

And where is this property? A smaller town I'm guessing? That might be part of the reason for finding it difficult to get finance?

No same PAYE job for last 22yrs 85k av pa wife bringing in another 10-15k ....just added another passive income business adding another 16k+ ....

Had over 19x Morg all paid off never missed a payment ...so high credit rating ...debt free own home @ 39yrs old,,,,

Issue is I also have run my own share/property trading company for last 11yrs ....and as we know with trading you have you good years and bad ....banks only seen the bad and even though at present my debt is fully covered by Liquid assets (actually now positive territory after last few months of cap increases)

So at present debt full covered .....but Mr bank ASB,BNZ,WP what to charge high rates for loans not even using up half of available equity >>

Yes properties I've been keen on are in small to tiny rural townships ....But rural based industry buildings 67%+ NBS high Net incomes
long fixed leases in place >> then get offered funds at 9% $#%@@%% off