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  1. #11

    Default

    You grow along with your mistakes, but making them at the beginning saves you thousands...

  2. #12
    Join Date
    May 2004
    Posts
    2,859

    Default

    Educate yourself first as there are many fish hooks.

    Join your local PIA. Ask ask ask.

    Read. Tenancy Services website. The Residential Tenancies Act. Healthy Homes regulations. Unit Titles Act if looking at apartments. Minister Faafoi's announcements about changes on the way. Some good books around, recommend Matthew Gilligan Tax Structures 101 and Property 101. Check out a lot of Tenancy Tribunal decisions especially for the location you are interested in.

    Run the numbers.Get a property accountant, but read IRD booklet Rental Income first.

  3. #13

    Default

    Thanks, very informative.

  4. #14

    Default

    Quote from artemis: (in my abbreviated form)

    "Educate yourself first as there are many fish hooks.


    Join your local PIA. Ask ask ask."

    ASK, take it or leave it, and trust your gut feeling.



  5. #15
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,100

    Default Stuff of Nightmares

    Quote Originally Posted by artemis View Post
    Read. Tenancy Services website. The Residential Tenancies Act. Healthy Homes regulations. Unit Titles Act if looking at apartments.
    Although good advice, the RTA is one of the most incomprehensible and indigestible pieces of legislation on the NZ statute books. Seems almost specifically designed to turn people's brains to mush.

    Quote Originally Posted by artemis View Post
    Read the IRD booklet Rental Income first.
    Much less a nightmare to read and get a fair understanding.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #16

    Default Property management fees

    Property management fees range from 7% all the way up to 12% +gst i have found while working in the industry. I have found if you go with the lower ones, which is what most people like to I have found that you often get bad information (on RTA Acts and other legislation) and would be better running your property yourself. Companies with higher fees hold themselves more accountable and you are often dealing with a property manager who has got properties of their own.

  7. #17
    Join Date
    May 2008
    Posts
    3,682

    Default

    Should I avoid becoming a landlord ?
    No.
    Should I manage the property?
    No.

  8. #18

    Default

    Quote Originally Posted by Bob Kane View Post
    No.
    Should I manage the property?
    No.
    I would manage the property yourself , have a look at a basic tenancy agreement from say Barfoot & Thompson , see how they cover the various pitfalls , much better than the basic one that is available from the governments Tenancy site.

    Your best insurance to "win" at this game is in your selection of a good quality tenant. Check not only their current landlord reference /contact but more importantly the one prior as you often get a more unbiased truer account of what kind of tenants they really were.

    Learn some simple handyman skills if you don't have them already as this can save you hundreds rather than having to look for trades people all the time.Many are not really competent and leave jobs improperly finished .

    Get to understand basic tenancy law most essentially, notification periods of rent increases and 14 day advisory notices for rent arrears etc.

    Treat the tenant well, have in mind it is your house but their home . Avoid - unless as a last resort - filing for Tenancy Tribunal hearing. It is time consuming and stressful, no matter what the outcome is.

    Property management fees are around 6 to 8% plus gst , That works out as a hefty sum over 1 year - close to 3k on a rent of $600 pw

  9. #19

    Default

    Thank you mrsaneoerson

  10. #20
    Join Date
    Apr 2018
    Posts
    225

    Default

    Quote Originally Posted by jimO View Post
    the main problem with being a LL is having tenants
    And other elitist LL's you just nod up and down to and club meetings :-) hehe

    I personally prefer the ASX to the NZ property market now, but there are still good buys to be had, you can lower your gross yield risk by buying property for as low as possible, some would call this Evaluated Market Value haha, if you can get 10-20% below this, you have lowered your risk to both housing corrections and your yield lowering. And of course you are buying for the income so yield should be your main objective (although nothing wrong with a mixture of yield and CG).

    It all comes down to, can you afford it, does it make financial sense (ie it gives you an income better than easier options), is it a good buy, is it not in an overcooked pocket etc. You can only know that by looking around and bouncing it off experienced investors.

    As far as the personal side of it as a lifestyle choice, being a LL is ok, the more hands off while retaining a good income the more enjoyable it is.

    Good luck to you :-)
    Last edited by OnTheMove; 23-01-2020 at 11:07 AM.


 

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