Have been frantically organising and renovating rooms. We had to make some beds available prematurely for the recent Lions Rugby game, the town was absolutely packed.

Anyway, managed to get about half the rooms (10)painted, carpeted, new bathroom fittings, lighting and beds etc all spruced up for about $25k prior to the game and are…[Read more]

It works in times of high capital growth and rental growth as well. You still need a large portfolio but this can be…[Read more]

Firstly, not many people can accumulate a $2,000,000 net position…[Read more]

Lower sales numbers doesn’t necessarily mean lower supply, it could be lower demand. However the tightening of supply would have a positive effect on prices as you’ve pointed out.

I guess you need to “Watch this Space”, there could be some opportunities if the market has turned.

Cheers
Jeff

Formula is: Equity plus CGain -L/E -Ann Int =Closing Equity
Year 1 2.000m plus 200000 -100k -7000 =2093000
Year 2 2.093m plus 209300 -100k -14490 =2187810
Year 3 2.1878 plus 218781 -100k -22504 =2284087
Year 4 2.284m plus 228409 -100k -31080 =2381416

etc etc
Year 15 3247358 plus 324736-100k -175903…[Read more]

Sorry, but I am not trying to torment you. If you don’t agree with my figures perhaps you could prepare your own and post them so we all can see otherwise.

You asked someone to ANSWER some questions perhaps this is why you don’t get any answers – you…[Read more]

So $2.093 plus 209.3k = $2.3023
Less $114k = $2.1883m

Can you see that?

Where you are going wrong with this example is the growth rate applied is 10% not 5%. The funding is 7% so you are actually capitalising just under 5% and living off just over…[Read more]

While I am not fussed on the strategy I have applied it in order to free up my time so that I could concentrate specifically on…[Read more]

Cheers
Jeff

1. You need to know the market you are buying in before making hasty purchase decisions.

2. Valuations are based on “historical evidence” and will always be behind in a rising market. Comparative sales analysis is used as evidence to justify a recommended value, that is, actual sales in the area. Keep in mind…[Read more]

I also see the intended objective for the Govt. being a waste of time and money. If someone saves $5k and qualifies for the FHOG they will have $10k towards a house.…[Read more]

Don’t start living off equity until you have enough equity to live off. And if you don’t spend the equity in your lifetime, someone else will.

Michael Yardney has pointed out the tax advantages of living off equity

My reason for living off equity was to become full time in property investing until I established enough…[Read more]

Buying a property investment – you’re mad

Borrowing all that money – you’ll go broke

Make any money – you were lucky or you’re a crook

Make any more money – you’re rich you can afford to pay more when you get contractors to do work for you.

Established – those who knocked you on your way up are now seeking advice, or a loan so they can…[Read more]

I think it’s a bit of an insult. While I agree with the encouragement to save to qualify for the entitlement, it is too restrictive.

Labour had a similar scheme about 20 years ago. You paid into a Post Office Home…[Read more]

Problem is, by the time you’re entitled to it the properties would have gone up $10,000

Cheers
Jeff

Regarding the 4 P’s there are some aspects I am stuck with such as the physical position of the building. The rest of the marketing mix has to revolve around this. The place was originally called The Grand Hotel but today it would be difficult to compete with more modern complexes without major…[Read more]

Some years ago I visited a friend who had recently bought a large house in Auckland, NZ. There were 7 or 8 properties within a secured area with a video monitor at the gate. Extremely lavish and secure, each property was on approx 2000m2 of land and then there were some common facilities such as tennis courts and gardners shed.

I…[Read more]

As a rough rule of thumb, Moteliers work on 1/3 of turnover for rent, 1/3 for operating expenses and 1/3 for profit. As you increase your turnover…[Read more]

The more common clause is the property must be offered to you at whatever price someone else is prepared to pay. In other words, it cannot be sold for less than the amount offered to you for.

Check the clause in your…[Read more]

I’m getting a little confused here. You want to quit your job and you need to derive enough income to survive.

You want to renovate your PPOR and onsell for a capital gain and then purchase another one.

You will only do it 2 or 3 times so you don’t have to pay CGT.

What’s the difference between paying tax on profits from trading…[Read more]

I do however, see what resiwealth is on about when you see topics like this posted.

https://www.propertyinvesting.com/forum/topic/17306.html

Cheers
Jeff

Try using the Insert/Function properties in your Excel spreadsheet for NPV and IRR formulae.

Cheers
Jeff

Perhaps a bulldozer and a new development might be less hassle and possibly more lucrative.

Cheers
Jeff

So what do you do when your returns drop off for a few years?

I now have a very strong commpercial property portfolio with longterm leases to national and international tenants and regular rent reviews. I endeavour to protect the cashflows derived from my properties.

How does your family eat and…[Read more]

It is quite feasible to average over 10% per annum over a period of time however, as property cycles move in waves it cannot be consistently relied upon each year.

I would rather have one property with 80% equity than 4…[Read more]

The theory is based on 10% per annum compounding growth which assumes a property doubles in value in 7.2 years. We all know in reality this cant happen every 7 years on a consistent basis but it is an example of how…[Read more]

The buy and hold strategy I adopt is more of a “never sell” strategy – hence, even in Australia CGT would not…[Read more]

While a company…[Read more]

I’m in Tauranga, New Zealand – the climate is supposed to be okay for olives but would need to do some major planting to make it commercially viable. The land value here is too expensive to justify it. The big thing at the moment is Avocados but they take a lot more looking after.

We’ll get a crop this year but…[Read more]

120 Dundas by any chance?

Jeff

The lease will tell you what the lessee is responsible for and what the lessor is responsible for, rent, term, reviews if any, guarantees if any,…[Read more]

Cheers
Jeff

1. Price for land and buildings – return required
2.…[Read more]

If you did end up with the business, what rentals could you achieve?
(ie $60000pa divided by 52 weeks divided by 22 rooms = $52.45…[Read more]

When your yield is less than your interest costs you would be relying solely on capital gains to arrive at an X dollar figure – to me that’s specualtive.

Unfortunately a 7 percent increase in property prices is not consistently achievable year in and year out. While I appreciate you did say “average over the longer…[Read more]

This sounds like the house I lived in. Inadequate heating, outside toilet and laundry, easy staggering distance to the Gardens Tavern. It was still there 2 years ago and has had little or…[Read more]

In property this is caused by various economic factors, interest rates being one of them. Alternative investments competing for the same dollar, exchange rates in various sectors (eg import/export), industry closures and redundancies, relocations, commodity prices etc etc can all cause…[Read more]

Cheers
Jeff

Are you restricting yourself by placing certain parameters on you buying eg price.?

Are you looking at alternatives to add to the cashflow?

If the deal is good, no matter what price and whether you can afford it or not, it will be worth something to…[Read more]

You could try http://www.quotable.co.nz
This site gives a free national demographic profile but you have to pay a few dollars for a localised one.

The other site is http://www.stats.govt.nz the last census was 2001, the next is 2006

Cheers
Jeff

I just prefer dealing directly with businesses that have a vested interest in keeping…[Read more]

Leaving it as residential may cause some problems depending on the type of industry close by (noise, odours).

You would have to assess the pros and cons of the particular property and have a plan…[Read more]

Location is still important and high street or highway locations will generally perform better than the properties one block…[Read more]

Jeff

My reference was only to this comment and the fact that money can be made by positive cash flow alone, hence my example.

Cash flow is only really of concern when you’re looking at servicability. You won’t make your millions out of five bucks a week on $20K down. Its the CG where you make your bucks, and the WHOLE market is headed for a…[Read more]

Why is it that we apply one scenario for one strategy and a reverse scenario for the other strategy.

For $2m you could buy a service station leased to an oil company or a motel on a 20 year lease.…[Read more]

Let me explain my raw example:

Purch Price $100k
Deposit 20k
Loan 80k @ 7%
Interest 5600
Net Rental 9000
Net Surplus…[Read more]