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  1. #21
    Join Date
    Jun 2004
    Posts
    10,426

    Default

    Quote Originally Posted by Bluekiwi View Post
    You can get high yield any time you want, you just have to ask for it, the question is really now, what the bank will lend you.
    What does that mean?
    How do you just 'ask' for yield?

  2. #22
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,903

    Default

    Quote Originally Posted by Wayne View Post
    What does that mean?
    How do you just 'ask' for yield?
    Its pretty simple Wayne, you tell me how much yield you want, and I will give you the answer.
    Paul Magill B.com
    Bluekiwi Property Consulting

  3. #23
    Join Date
    Feb 2013
    Posts
    355

    Default

    Quote Originally Posted by Bluekiwi View Post
    J

    Thirdly, don't do subdivision in Auckland unless you want to go broke..
    Agree 1 into 2 types of submission costs money unless you just sell the second lot. hassle free cash.

    Unless you bought the Sub dividable land a long time ago and essentially freehold. Still , very low margins for the risk/headaches.

    You could perhaps (for even higher risk/reward) look at building 10+ multi units instead.


    Problem, is if you are in Auckland, houses/land are so bloody expensive , opportunities are very limited and everyone is competing with each other.

    I see big trouble for the apartment markets ahead. Even host Hobsonville builders are under stress , cant sell so renting it out
    Last edited by BlueSky; 06-09-2019 at 11:21 PM.

  4. #24

    Default

    Quote Originally Posted by Rosco View Post
    - So if starting now and can trade successfully (which is very hard), then can accumulate a lot more buy and hold properties than could have with just holding!

    Ross
    Hi Ross,

    Why is trading successfully so hard in your opinion? What trip should people up?

  5. #25
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,347

    Default

    Quote Originally Posted by Bluekiwi View Post
    Its pretty simple Wayne, you tell me how much yield you want, and I will give you the answer.
    That doesn't make any sense to me. Could you explain further?
    Squadly dinky do!

  6. #26
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,903

    Default

    Quote Originally Posted by Davo36 View Post
    That doesn't make any sense to me. Could you explain further?
    You mean this statement "If you want yield, you just ask for it" - how more simple can it be ???

    Step 1: Decide how much Yield you want, lets say for example you want 6%.

    Step 2: Find a house you like, lets say for example there is a house on the market for $1,050,000 that you would like to buy for 6% yield.

    Step 3: Find out the rent, say its $835 per week.

    Step 4: Calculate the price you need to pay to buy the house at, which will give you 6% yield, so (835x52)/.06 = CIRCA: $725,000

    Step 5: Put a cash unconditional offer in at $700,000 - negotiate and buy it at $725,000

    So you want a certain yield, you just have to ask for it, and eventually you will get it.
    If you don't ask, if you don't try, then you wont get it.

    If you don't believe me, well the above example is exactly what I did in May this year.
    CV 1050 and RV of 1.1m
    Paul Magill B.com
    Bluekiwi Property Consulting

  7. #27
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,627

    Default

    Quote Originally Posted by House Hunter View Post
    Hi Ross,

    Why is trading successfully so hard in your opinion? What trip should people up?
    The uncertainty on sale price at the end. One of the issues is that a lot of real estate agents don't have a clue what a house is really worth at the end either. They say, buy it, do up the kitchen and bathroom and it will sell easily, but they kind of miss all the other costs associated.

    And also from watching many traders not make any money, or lose money. Plus trying residential trading myself.

    Ross

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  8. #28
    Join Date
    Feb 2015
    Posts
    378

    Default

    Quote Originally Posted by Bluekiwi View Post
    You mean this statement "If you want yield, you just ask for it" - how more simple can it be ???

    Step 1: Decide how much Yield you want, lets say for example you want 6%.

    Step 2: Find a house you like, lets say for example there is a house on the market for $1,050,000 that you would like to buy for 6% yield.

    Step 3: Find out the rent, say its $835 per week.

    Step 4: Calculate the price you need to pay to buy the house at, which will give you 6% yield, so (835x52)/.06 = CIRCA: $725,000

    Step 5: Put a cash unconditional offer in at $700,000 - negotiate and buy it at $725,000

    So you want a certain yield, you just have to ask for it, and eventually you will get it.
    If you don't ask, if you don't try, then you wont get it.

    If you don't believe me, well the above example is exactly what I did in May this year.
    CV 1050 and RV of 1.1m
    Rent not achievable pre reno
    Current yield 3.9
    Still in the market after 4 months
    https://www.trademe.co.nz/property/r...cc9ca02299-003

  9. #29
    Join Date
    Apr 2009
    Posts
    1,003

    Default

    My 2 cents worth...
    4 months is too long, listing goes stale.
    Better to remove from market.
    Perhaps rent and repost again later spring. Relist without a price and take it to private sale by tender.
    It didn't sell before for 1.05M. You bought for 700k+, better to sell even if 900k and keep the trades moving.
    The tender will find the market value.
    Okura is lifestyle so be careful when market flattens and you're expecting quick re-sale it's better to have a more sought after location.

  10. #30

    Default

    Quote Originally Posted by flyernzl View Post
    I wouldn't.
    The market has changed.
    Sometimes I went seven years between buying, at other times I bought three in one year.

    There is a time to buy and a time not to buy.

    It will change back at some stage.
    Interesting thought. So times like these when the market isnít showing great yield returns you just sit and sit for years and then buy in downturns (such as 2009-2010?)

    In the meantime do you just pay back loans or invest in alternatives (share market funds for example)?


 

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