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  1. #1
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default Don't believe you can't buy at a discount

    Just to encourage those of you in Auckland who believe cheap properties don't exist.......
    Bought 2 properties today in Papatoetoe.
    RV 230K PP 185K 19.6% below valuation
    RV 270K PP 215K 20.4% below valuation

    You just have to keep putting in offers. The deals are there!!

  2. #2
    Join Date
    Aug 2003
    Posts
    7,588

    Default

    What are you going to do with those properties Dean?

    Trade? Hold?

    I understand the deals are out there to buy under valuation - however do all the numbers stack up? Are these properties going to produce healthy yields too?

    Or is the focus these days to trade property not buy and hold?

    Keen for your feedback.

    Cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  3. #3
    Join Date
    Aug 2003
    Posts
    7,588

    Default

    Our neighbour's property was on the market for $100K less than valuation. CV (rateable value) was $450K and BEO was $350K.

    The house in question has leaky building syndrone where two houses were joined to make one larger home. My neighbour said initially they were told the cost to repair would be around $25K - however on further investigation that figure rose to over $100K and that's why they put it on the market.

    The property sold for $380K. Would this be considered a good deal? It did sell for $80K under the valuation.

    Cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  4. #4
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Hi Donna, haven't decided finally yet. Probably trade one and hold one. One of them is over 8%, the other I can onsell to an end buyer and put the profit into the other one.
    I'll end up with a 2 year old brick and tile property paying me 10%

  5. #5
    Join Date
    Aug 2003
    Posts
    7,588

    Default

    umm that definitely sounds attractive!

    Well done.

    Cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  6. #6
    Join Date
    Nov 2003
    Location
    Auckland
    Posts
    524

    Default

    Yes, it's turning into a buyers market (in Auckland at least).

    I bought one last week -
    RV $290K PP $240K 17% below valuation

    and put a back-up offer on one in Remuera today -
    RV (Feb 2004) $590K PP $490K 17% below old valuation

    And there's plenty more out there.

    I am planning to trade or lease option these.

    Cheers,

    Grant

  7. #7
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Yeah that was my other thought, lease option them both.

  8. #8
    Join Date
    Oct 2005
    Location
    Auckland, NZ.
    Posts
    618

    Default

    Hi What exactly do u mean by lease option ?
    Are u able to please explain that one ?

    Cheers,
    Matt.

  9. #9
    Join Date
    Aug 2003
    Location
    auckland
    Posts
    413

    Default

    Hi Poomba

    I was wondering if when you buy, whether you look at a suburb and then become selective about the locations within the suburb?

    Tamara
    You don't know how great things are until you loose it.

  10. #10
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Hi Swiss Kiwi,
    Lease optioning is effectively a rent to buy tenant. They have the option to purchase the property when they are able. Very complicated to explain in detail here, but it attracts great tenants and gives you top rent!!

    Hi Tamara,
    As you've probably read from me elsewhere here I believe that researching an area is everything when it comes to buying well. In the case of these 2 properties I knew you couldn't buy a free standing 2 brm house in Papatoetoe for under 200K. I think there is 1 on Realenz. And you definitely can't buy a 2 year old brick and tile property in Papatoetoe for under 250K.
    I checked the rent stats and both tenants are paying median rents so I knew they were a good deal. BEcause Papatoetoe is out of my normal patch, (it's too expensive), the only thing I didn't know was whether the street was bad, but I decided the numbers were so good I'd take a punt on that. Have since found out the street is good!!


 

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