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Ive bee renovating since 2000 in SE Qld and then back in NZ when the key government messed up by printing money and propping up a market that could have lost 20-30% and only lost 4%. So Gen Y and Z have no concept of markets going backward and people commiting suicide over investing millions of other peoples money in the stock market.
Given Bloomberg saying NZ and Canada are the 2 most at risk property markets of MAJOR correction.
I think the Auckland Plateau over last few years is a good sign of this occurring. Our country has borrowed more money than it produces annually. Possibly a lost gen thing in personal lending but a lot of it is mortgage.
As someone who has always gotten in an out before dips in suburbs and markets in general, it has worked for me. So the above even if we drop 30-40% .I dont believe that, but going on 9% from 1999, we should be at about 650k median in Auck not $800k, a 20% correction will be max. Of course some property types could lose 50% like 2008, holiday apartments, apartments, basically anything with no land to justify the ridiculous prices.
I try to ignore noise, I do my thing, get in and get out. I dont rip people off by converting 1 bedroom units into 2 with tiny rooms and splitting a window. I do however buy below market value and I dont renovate to add value, I renovate to increase its chances of selling quickly. Now all that still works in a market that poops itself provided you have bought WELL below market value.
All of that is well and good. But I want to try my hand at property development, no not adding a wall for a new room, or turning the rumpus into a self contained granny flat.
Im thinking unit/villa development.
Now these things take much more time, I cant get 60 days early access and sell them before I owe a cent like with general renovate to sell.
How do I negate risk in this type of development? Is it a case of waiting? (for a market to pop or have some reason for stability, not likely in an economy driven by milk and propaganda tourism, both at odds with each other).
What is my first step in finding the right property to convert to multi dwelling, find the right town planning of course, but what else should I look for?
What is the easiest, quickest and safest multi to dip my toes in?
Both myself and my partner who is a Dr but also a project manager are both project managers at work and have found this side of things not too difficult. But a bit scared of the unkown.
Given Bloomberg saying NZ and Canada are the 2 most at risk property markets of MAJOR correction.
I think the Auckland Plateau over last few years is a good sign of this occurring. Our country has borrowed more money than it produces annually. Possibly a lost gen thing in personal lending but a lot of it is mortgage.
As someone who has always gotten in an out before dips in suburbs and markets in general, it has worked for me. So the above even if we drop 30-40% .I dont believe that, but going on 9% from 1999, we should be at about 650k median in Auck not $800k, a 20% correction will be max. Of course some property types could lose 50% like 2008, holiday apartments, apartments, basically anything with no land to justify the ridiculous prices.
I try to ignore noise, I do my thing, get in and get out. I dont rip people off by converting 1 bedroom units into 2 with tiny rooms and splitting a window. I do however buy below market value and I dont renovate to add value, I renovate to increase its chances of selling quickly. Now all that still works in a market that poops itself provided you have bought WELL below market value.
All of that is well and good. But I want to try my hand at property development, no not adding a wall for a new room, or turning the rumpus into a self contained granny flat.
Im thinking unit/villa development.
Now these things take much more time, I cant get 60 days early access and sell them before I owe a cent like with general renovate to sell.
How do I negate risk in this type of development? Is it a case of waiting? (for a market to pop or have some reason for stability, not likely in an economy driven by milk and propaganda tourism, both at odds with each other).
What is my first step in finding the right property to convert to multi dwelling, find the right town planning of course, but what else should I look for?
What is the easiest, quickest and safest multi to dip my toes in?
Both myself and my partner who is a Dr but also a project manager are both project managers at work and have found this side of things not too difficult. But a bit scared of the unkown.
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