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  1. #11
    Join Date
    Apr 2016
    Posts
    2,343

    Default

    You can't have future data. There is just no evidence to support your statement. It has never happened before so suddenly it ill start now. Not very likely. There are no predictions of years and years of no rental growth or capital gains. So where ever you get that from you need to get a new source of info.

  2. #12
    Join Date
    Aug 2009
    Location
    Auckland
    Posts
    1,070

    Default

    Quote Originally Posted by donna View Post
    Thanks Ross - great post! Yes and to add further to Nick's post if you can't add a bedroom - try and add an extra bathroom or at least a toilet particularly for rentals of 3 or more bedrooms. An ensuite for example does add $$ to the rent grab and add value to the property.

    cheers,

    Donna
    We've found that adding bedrooms are far more cost effective than a new bathroom. There are far too many different costs involved in adding a new bathroom. Plumbing and waterproofing is not simple or cheap
    www.PropertyMinder.co.nz
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  3. #13

    Default

    An extra $10 per week valued at a 6% net yield adds approx $8K in value to the house. So if you spend $15K adding a bathroom and you add $40pw in rent then you're ahead.

    At the same time, bedrooms are generally better value for money because people rent bedrooms. The cost will usually be less and the return a lot more depending on the area.

    In wellington uni area where I invest right now a bedroom goes for $180-210 per room (more for 1-2 bed places). You add extra bathrooms to support the # of bedrooms because 5 bed / 1 bath flats can get cosy in the mornings :-)

    Check with your PM though.
    Free online Property Investment Course from iFindProperty, a residential investment property agency.

  4. #14
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,312

    Default

    I'm be looking more at the cashflow from renovations.

    If getting $40 extra rent per week, that is $2,000 approx. if it cost you $15,000 then that is a 13% return on investment. Which is a lot better than a lot of investors who are buying a new rental giving a 4% Gross Yield.

    With the renovation, if you are paying interest on the $15,000 borrowed which is $750 per year approx, you still should be improving your cashflow by $1,250 per year.

    Ross
    More Profit from Property? Learn How HERE.
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  5. #15
    Join Date
    Mar 2008
    Location
    Auckland Wide
    Posts
    1,232

    Default

    Inflation eats away at debt, it doesn't matter what the market does in the shorter term. No one can predict when the banks will start to lend aggressively again. I can see the value of cash flow in this kind of a market though. I'm holding a little presentation on tiny apartments next Thursday as another strategy, come along if you are close to Onehunga. Details here, mortgagesonline.co.nz/dont-need-lawns/
    Last edited by Marc; 26-07-2017 at 05:44 PM.

  6. #16
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    540

    Default

    Quote Originally Posted by mortgage broker View Post
    Inflation eats away at debt, it doesn't matter what the market does in the shorter term. No one can predict when the banks will start to lend aggressively again. I can see the value of cash flow in this kind of a market though. I'm holding a little presentation on tiny apartments next Thursday as another strategy, come along if you are close to Onehunga. Details here, mortgagesonline.co.nz/dont-need-lawns/
    What do the apartment yield ?
    Ps I can't make this presentation as in Wgton but do you run these often?

  7. #17

    Default

    The media does say there is a HUGE shortage of accommodation in Auckland. But when I look at rentals available on trademe there are HEAPS in certain areas. 640 in the city centre available today! I would have thought if there was a massive shortage there would be people lining up to rent every single property. The alternative is people can't afford the rents. Either way it is capping rental prices as you can't rent out what people can't afford no matter how big the shortage....

  8. #18
    Join Date
    Apr 2016
    Posts
    2,343

    Default

    Very area centric Kazz. Lots of suburbs having 30, 40 people turn up to a rental viewing. And half of them are great tenants.
    In Pakuranga and all the Eastern suburbs there are under 100 family homes for rent. And quite a few of those are high end so expected to take a while to let.
    Last edited by Bobsyouruncle; 01-08-2017 at 05:33 PM.

  9. #19
    Join Date
    Feb 2015
    Posts
    267

    Default

    I hate to catch a falling knife.




  10. #20
    Join Date
    Feb 2015
    Posts
    267

    Default

    Quote Originally Posted by Frezzinghot View Post
    For me, anything that pays for itself, look to increase current rents, look for discount on asking, should be plenty out there now. Big issue is lending limits. Timing, best time to buy would be now before election.

    FH
    You may be right

    “If this is a ‘normal’ cycle, we’ll lose 10% or so from current peak prices over the next 4 or so years. A dead cat bounce will look good in a year or 2, but that will peter out

    http://www.propbd.co.nz/housing-cycle-rate-last-4/


 

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