If you were me..

[sp275]

Im just after a bit of a feedback to get peoples opinions who have far more knowledge and experience than me, on what the best course of action to achieve my goals.

Im 30, living in China and have no property. I save anywhere between $4500-$7000 NZD a month, and my ultimate goal is to have 1 OO and 4 IPs. Ideally OO and 1 IP in Auckland and the rest maybe around Hamilton.

Im in a confusing situation. My contract finishes here in Beijing next August. I should have 120k NZD as a deposit by then as a realistic/slightly conservative estimate touch wood.

If you were me, what would you do in August?

My options that i can see so far is:

A) Stay another 2 years and return with about 200k. This should get me in to two places (3 at a stretch?) but who knows what the market is doing then.

B) Come home in August for good and take advantage of the 5% first home buyer deposit, and may be able to get the second property soon after with remaining funds.

C) Buy, rent it out and go back to China. However it would be counted as an IP right? and therefore require a 35% deposit? 600k house = 210k. These numbers wouldnt work if thats the case.

D) Thats the extent of my knowledge. Im not aware of a possible option D.

As a side note, i want to get on the ladder and dont want to miss the boat, but im also kinda scared about the wage id come back to and the reality of how hard it is to save. Love NZ and want to live there forever, but when i can afford to enjoy it. Maybe getting into property ASAP is the answer, maybe not.

Would love to hear your ideas and thoughts. Really appreciate anyone taking the time to drop and knowledge on me, no matter how big or small.

[donna]

Hi sp275,

So you're a Kiwi citizen? Where do you want to live right now? No doubt you're up to speed with the curb on offshore sales.

cheers,

Donna

[sp275]

yes i am an NZ citizen. I raised this exact question about offshore purchases on the property investors group on facebook and many kiwis and brokers replied that it is still possible to buy even overseas. i am really just not sure if its best to leave what i havr here and get on the ladder, or wait another couple of years and maybe come home with 200k ish and maybe be able to buy 2 straight away?

[Don't believe the Hype]

If you're happy in China earning good money I'd stay - if you can get funding in NZ to invest in NZ while you're there look for strong cash flow properties in good locations (not small regional towns) that can be managed by a good PM.

The 5% FHB is a distraction to your long game and not worth focusing on.

Don't worry about missing the boat - I started buying properties in NZ when I was paying around $200k/house... I knew people who had bought years earlier for under $100k if I focused on what they paid vs. the fundamentals of what I bought I'd still not own a property. I'm not saying be rash with your decision making but make sure the investment meets your criteria and go forward.

Utilize your time in China earning the big bucks to invest in assets (might not only be property) that replace your income - when you come home you can then take a job (if you need one) that you like vs. one that pays enough to fund your lifestyle.

[Nick G]

Agree. Sock away all the money you can get. Cash is king. Many things helped me get ahead but a biggie was I earned a lot while I was quite young and didn't spend much, so I could invest.

Personally if I were you I'd see what I could buy sooner and try to get started. You can always trade up into the properties you want down the line.

Side note: you can invest while overseas. My agency helps lots of kiwis do it and I did it myself for years while in Japan.

[sp275]

i really appreciate the advice. i want to come home a wee bit, but i know once i get home I'll regret it and kick myself for leaving so i just have to keep focused. great advice. "Dont believe the hype", ok duly noted about buying in good locations but not in regional towns. I need 35% to buy outside of NZ, so how about somewhere like Dunedin? I see a fair few places for 300k and i could get 35% together not too long after feb next year. Outside of that, im always worried about CHCH and earthquakes, and couldnt afford anywhere else other than Dunedin or Invercargill. Bloody cold places so im glad i wouldnt be living there! no offence to those from down there!

[sp275]

and Nick G, once im closer to 100k saved ill flick you a message👍

[chris_gee]

You might look at how possible it is to get your money out of china. I understand it is restricted.

[sp275]

been doing it a year and got it sorted. but in general its restricted.

what are thoughts on auckland apartments? seen some for 230k with about 6.7-7% yield and relatively low body corp fees, $1800-2000 p.a. books ive read have all been a bit wary on them though... anyone have any success with apartments in akl cbd in here?