Hi, is anyone looking at NZ properties? Would like your thoughts on this.
Any region is OK.
KY
Any region is OK.
KY
anyone looking at NZ?
- Thread starter kum yin lau
- Start date
This would be a tiny proportion of the market. Maybe 1% or less, unless you are specifically looking for an Auckland central city apartment.
Hi, I still hold the student apts.
The managers are really excellent & for 9 years, they have been set & forget type of investments.
I'm looking at buying something else because now I have to pay tax on them!
Yields are good, interest rates low, 2 year fixed rates at 5.6% give or take.
BTW, I've never even seen my properties, just the bank accounts!
However, this time round, I'm thinking of taking a more active part as in buy & renovate or redevelop.
KY
The managers are really excellent & for 9 years, they have been set & forget type of investments.
I'm looking at buying something else because now I have to pay tax on them!
Yields are good, interest rates low, 2 year fixed rates at 5.6% give or take.
BTW, I've never even seen my properties, just the bank accounts!
However, this time round, I'm thinking of taking a more active part as in buy & renovate or redevelop.
KY
But have you had any capital gain on the student apts?. As a NZ'er in a previous life I was back visiting a short while ago. Personally I would rather invest in Australia which has a lot stronger economy. NZ's economy is like a roller coaster. Also interest rates in NZ are traditionally higher than Aus. The interest rates in NZ at the moment reflects the state of the economy.
Hi, to answer the qn, the CG has been very small. Eg of the best CG is 1BR unit bought for $95K now sells for $125K tops.
But the rent is going up & yield will be around 9.5% net
The stability is what stops me from selling them.
INXS, your comment about the roller coaster nature of the economy is really interesting to me.
Buying when interest rates are low [economy is crap] is akin to buying straw hats in Winter, isn't it?
KY
But the rent is going up & yield will be around 9.5% net
The stability is what stops me from selling them.
INXS, your comment about the roller coaster nature of the economy is really interesting to me.
Buying when interest rates are low [economy is crap] is akin to buying straw hats in Winter, isn't it?
KY
Hi everyone
I flipped a property in NZ some 12 months ago and Mark Honeybone, MH Ventures helped me with this deal. It worked out very well and I can recommend Mark
There are some great cashflow deals for sure in NZ, but I ended up purchasing properties in US and am back investing in Australia. Here is a link for those interested.
http://www.property-investors.co.nz/
Cheers, MTR
I flipped a property in NZ some 12 months ago and Mark Honeybone, MH Ventures helped me with this deal. It worked out very well and I can recommend Mark
There are some great cashflow deals for sure in NZ, but I ended up purchasing properties in US and am back investing in Australia. Here is a link for those interested.
http://www.property-investors.co.nz/
Cheers, MTR
Wanganui is a gang town. We went there and thought it was a lovely place, didn't see any of the gang elements there.
Re the NZ economy I think you have to live there for a period of time to appreciate it is completely different and far more vunerable than the Aussie economy. My experience was it was hard to get ahead in NZ with low wages and an economy that limped along not providing anything like the opportunities available in OZ. Why do you think there is so many of us here!!. 52,000 kiwis moved to Perth last year, that tells a story. Yes NZ is good for yields but I think capital growth, especially outside the major cities is limited. Also a lot of the housing stock is small 1960-70's weatherboard homes with high maintainance costs. Also a lot of potential tenants are struggling economically and I would think rent arrears could be an issue. In summary I would say the grass is not always greener on the other side of the investing fence, go in with your eyes wide open. A lot of Aussies lost money in Tokoroa (small forestry town in middle of North Island) about 8 years ago because they were blinded by the yields.
Thats correct, the population in NZ is not growing. In fact, there is a net loss of people leaving the country every year, usually to OZ. That is why, I do not believe NZ property investment is worthwhile. It would be a nice place to retire. I would love to spend summer in Takapuna and winter in Oz.
I do have a property in nz as i am from there. Cashflow is good. Cg not so good. Wages are very low compared to aus and job security is not that flash. Hense alot of people come to aus. For example same job in aus is double the wage or more and plus 25-30% extra in the exchange rate. Crazy.
Plus i wouldnt be suprised if they bring in stamp duty and cg tax in the near future.
Cheers
Plus i wouldnt be suprised if they bring in stamp duty and cg tax in the near future.
Cheers
anyone looking at nz
It all depends on the way you look at it and your investing strategy. I live and invest in ChCh New Zealand. I buy positive cashflow properties with the aim of providing myself with an income now and leveraging to buy more property. Capital gain is a bonus. I am hands on with property and think it would be difficult to manage from Australia without a good property manager. I carry 25% level of debt.
It all depends on the way you look at it and your investing strategy. I live and invest in ChCh New Zealand. I buy positive cashflow properties with the aim of providing myself with an income now and leveraging to buy more property. Capital gain is a bonus. I am hands on with property and think it would be difficult to manage from Australia without a good property manager. I carry 25% level of debt.
I went to school at Takapuna from primary right through to Takapuna Grammar! It's a beautiful place. Some great memories! Spent a lot of time in Devonport as well which is also a beautiful spot. Many great friends and many good nights through the years down at the North Shore Rugby Club
.However, I'd have to agree with China the economy is weak and unfortunately people are leaving the country because of this . I think there is some fantastic opportunities right here in Australia with exposure to CF and CG and our economy is a lot more robust.
Jack
Hi, thanks for your input. Some interesting comments from the Kiwis amongst us.
Looking at the current prices of houses, can it true that there's no CG?
Wouldn't it rather depend on your starting point?
Of course, the valid point too is that properties may not sell at all & the further collolary of how low they can go!
There's some indication that Auckland properties are not at all lagging in spite of the fact that many people cannot afford to buy.
Well, wait & see.
KY
Looking at the current prices of houses, can it true that there's no CG?
Wouldn't it rather depend on your starting point?
Of course, the valid point too is that properties may not sell at all & the further collolary of how low they can go!
There's some indication that Auckland properties are not at all lagging in spite of the fact that many people cannot afford to buy.
Well, wait & see.
KY
