These loans are just for short term holding; ie buy, settle and then on sell immediately at retail (not wrap!), so the interest rate is not of the utmost importance as the property will be held for say 120 days max.
Stuart, with the Eurofinance loan mentioned, are there are loan break fees and post code…[Read more]
Been a way for a while. It is true that this subject has been bled to death.
In my experience, the best deals are not found on the internet at all. They have been found, just walking around looking in real estate agent’s windows….
The internet certainly works as a filtering tool for possible investing areas, but just looking at the…[Read more]
Well said Mr Trass for articulating perfectly my views about why it can be hazardous to invest in small rural NZ towns.
Coming from such a knowledgeable and authorative source as yourself, I hope others will take heed of your words of wisdom.
When you say ‘bought’, what exactly do you mean? Have you signed the contract yet?
If so, be careful, you may be in a position where you have a legally binding contract and will be forced to purchase despite your reservations. Check the contingency clauses in your contact if this is the case.
My advice for what it’s worth (and this…[Read more]
Here’s a link that will explain wraps in a bit more detail
Personally, if I was you, I’d pay EXTRA special attention to the ‘Critical Success Factors’
I 100% agree with Elysium-M.
In a situation whereby you employ the services of a valuer who will effectively ‘roll over’ for you , there are two (or more) possible consequences
i) The valuer will get blacklisted by the lending institution
ii) The valuer will sue you
This is what is happening in NZ to ESC (RichMastery)who are currently…[Read more]
No probs. Real estate is essentially a game; play by the rules, you get what you want… Everybody is happy.
Also forgot to add, in putting together comparable sales, EXCLUDE any recent sales that will not benefit you; eg property a few doors down sold cheaply due to a distressed sale will NOT add to your case, so do not include it in…[Read more]
In this current market, valuers are extremely busy and in carrying out a valuation will just look at recent sales which in most cases are in excess of 6 months old. This is a problem in a fast moving market.
To ensure you get the valuation needed, YOU have to do the homework for them; ie provide them with 5-6 recent comparable…[Read more]
I don’t think the vendor is being too greedy. You both have agreed to the purchase price, so there’s no real need for the vendor to reduce the price REGARDLESS of the valuation.
Unfortunately, I believe the vendor understands your pysche, ie i) You are a newbie ii) You are an out of towner. Put i) and ii) together and you get a highly…[Read more]
I understand what you are saying but I feel that’s closing the stable door AFTER the horse has bolted.
My point was that UPFRONT research would have uncovered these distasteful tactics that yourself and many people are unhappy with; ie a refund would not have been required as the research would have led you to the correct decision in…[Read more]
Not meaning to stir up a hornet’s nest but…
First of all, I’m no fan of HK or of anything that he advocates.
However, in my opinion, people who are prepared to pay in excess of $15k for a seminar WITHOUT doing their due dilligence about the company or the officials behind it (ie eyes wide shut)in the remote hope that it will be a PANACEA…[Read more]
Basically NOTHING… Well not much anyway
No stamp duty on loan
No stamp duty on mortgage
Costs will be:
Application fee for loan
Inspection costs; building, pest and LIM
Minimal settlement fees
That’s about it!!
P.S also NO capital gain tax if it’s bought as a long term buy and hold
Thanks for that post… My spiel was for the general info of ‘Non-Kiwi’ newbies who may be confused with all the terminology and its relevance.
I already know you have your system down pat. 
Sooshie… No probs
Bruce… Lemming…? I doubt it… I can confidently say that you’re ONE of a kind.
My strategies for reducing risk are as follows:
i)All my loans have now been reverted to p & i
ii)I have 3 months worth of cash in the bank to cover absolutely worst case scenario of having all my properties empty.
iii) The combined LVR of all my properties is…[Read more]
Just a note of caution about using GV as a proxy for the market (real) value.
GV’s are basically government valuations carried out by local councils every 3-4 years by use of an almost ‘adhoc kerbside’ methodology.
They are also known as CVs (Capital Values). Capital Values = Land Value + Value of Improvements to the land (ie the building…[Read more]
Let me put the quote into context.
It was made by a U.S journalist 3 months PRIOR to the crash of the internet (Dot Com) sector.
To paraphrase, he was basically saying was that one could normally predict the bust of a bubble because normally record and unprecedented levels of activity precede the impending crash.
I think in this case the…[Read more]
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