[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 25, 2010 - 8:57 pm

Excellent outcome! Good on you for taking action.  It sounds like you're going to have a more positive experience with the new manager.

Let there be abundance for all.
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 21, 2010 - 7:26 pm

You might want to look into http://www.masteraccountants.co.nz on the NZ side, they have a lot of Aussie property investor clients.

Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 21, 2010 - 7:10 pm

When you're doing your research for the new property management company, ask them what their vacancy rate is too.  And, find out if some times of year are generally easier to tenant than others.  As you've already experienced, Dec/Jan is a hard time to find a tenant!!

Here in NZ, I put all my tenants on a fixed term tenancy, so that I HAVE CONTROL of when they leave; if necessary give them a fixed term of an odd number of months, and be up front with them, tell them why you're doing it.

Generally speaking, you don't want a tenant vacating your property in Dec or Jan, or in the winter as it will probably be harder to tenant.  So design their fixed term tenancy around periods when there will be more renters looking for accommodation, and you'll have less vacancy.  What I do is visit the tenant about 6-weeks before the fixed term tenancy is about to expire, and ask them if they're planning on staying.  If so, they enter into another fixed term to my liking, if not, at least I have lots of lead-time to find a new tenant, and know exactly when they'll be leaving/paid up to.

And lastly, be firm with the property management company. It's your property, you tell them how you want it run.

Cheers,
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 21, 2010 - 5:14 am

If I was you I'd be finding another agent NOW  … before you're in a right PICKLE!!!!!

Clearly the outfit you're using are inflexible and only prepared to work certain hours, which doesn't encompass the weekend, which is when most working people (i.e. the kind of tenant you probably want!!) are available to view a property.  So many of these outfits forget who is paying them. 

Let's face it, YOU found the tenant for them, and they're going to charge YOU a regular weekly commission for you allowing them to collect the rent for you?!!

That's my 2-cents worth – dump 'em.

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 19, 2010 - 6:53 am

Sounds to me like you need to kick your agent for touch!  Two months is a long time to be vacant and it sounds like they are not focussing on filling your property.  Find somebody else who knows what they're doing!!!!

Good luck, I'm sure it'll get sorted.
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 19, 2010 - 6:53 am

Sounds to me like you need to kick your agent for touch!  Two months is a long time to be vacant and it sounds like they are not focussing on filling your property.  Find somebody else who knows what they're doing!!!!

Good luck, I'm sure it'll get sorted.
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 19, 2010 - 6:48 am

V8GHIA – Sapphire's post regarding lending in NZ is correct.  Most banks are requiring 30% deposit from Aussies.  Us Kiwis can get away with 20% if we can show good serviceability.  You will need bank accounts set up in NZ for ease of transacting rental income and mortgage payments.  Roost mortgage brokers, who facilitate Kiwibank loans, are required to meet you in person before a mortgage will be given.  

SAPPHIRE – email me (go to my website for details) about your $800/week income 7% deal, with more info, i.e. what suburb, so I can give you informed feedback.  Personally, in the Hawke's Bay, a multi-income 7% yield would need to be in a super good area and in mint condition.

I prefer to be hitting the 8.5% + for multi properties in either Napier or Hastings.  As an example, I have a 9.57% 2-income property, recently refurbished (3-bed house and separate 2- bed house on one title) returning $530 week coming available late next week.  With a 30% deposit and 7% interest rate mortgage, it is $5000 positive a year on a principal & interest loan and $8000 positive on interest only. 

I look forward to meeting you when you're over this way.

Cheers,
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 18, 2010 - 8:51 pm

Ima,

The 11-second solution works in any currency because what you're comparing is the same.

In the current state of the economy, I would expect you will need to show income to support a mortgage, even if you do have equity. The banks everywhere have tightened their belts on lending.  In your situation, my first priority would be to get cashflow coming in weekly via a permanent job or two so that you look better to the banks.

Good theory you have, just a few boxes to tick first.

Good luck.
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 18, 2010 - 9:09 am

Ian, if you get over to NZ and come to the Hawke's Bay, contact me via my website and I'll give you the "grand tour". 

Cheers,
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 18, 2010 - 3:37 am

Hopefully the "Powers That Be" are paying attention and can start up another section for selling goodies of all types on!!

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 17, 2010 - 10:18 am

Maybe the people running this forum could create a "BS" section specifically for spruikers to post in.  Our NZ site, Property Talk, has a special section called "caveat emptor" where the spruikers can post deals to their hearts content!!!

Just a thought …..
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

February 17, 2010 - 10:11 am

Yes, finally we're starting to see some great positive cashflow deals come to the market in NZ – YAY!!!!  

I'm a property finder in the Hawkes Bay (Napier and Hastings area) and after 3 years of low yields and difficulty getting finance, it is refreshing to be finding good quality +CF deals.  Whilst still few and far between, they are out there, like a dual income (3-bed and 2-bed on 1 title) for $288K with combined rents of $530 a week — that's 9.57% in Napier with over $6K of cashflow a year.

So Ian, shop carefully – you can do way better than 7% if you know where to look.

Good shopping,
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

January 24, 2010 - 3:34 am

Ah yes, Tokoroa!!   Tok was good to Steve in the early 2000s, he had so many houses there at one stage — all painted the same colour — that you could drive around Tok and know exactly which ones he owned!! 

Personally I would not be buying in Tok these days due to the GFC, and especially if you're a remote landlord, you'll be wanting a more stable location with better upside growth. 

There is talk of interest rates rising after the budget in May, so if you're planning on buying here in NZ and want to lock in a good long term low rate, do it before the middle of the year.  I can also recommend getting yourself pre-financed as that will help with negotiations if you know what you can fund and are able to make good solid cash offers.

Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

January 23, 2010 - 10:35 am

You probably won't get the growth you'd get in Aussie cities that are going off at the moment (Sydney), but at the moment NZ is a fantastic place to buy cashflow – which you may struggle to get in any of the big Ozzie cities.

It really depends what your strategy is.  Are you wanting capital growth?  or  cashflow?  There is no stamp duty and no capital gains as yet in NZ.

Provided you're buying good quality properties in desirable cities, there shouldn't be a problem.  You will need a good property manager though.  I recommend staying away from the really small and/or lower socio towns, even though you can get better yields there, because they will have higher tenant turnover and generaly be harder to keep tenanted.

Good luck in your hunt!
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

July 25, 2009 - 4:38 am

Hi Fitzer,

I'm pretty sure you can claim neg gearing and depreciation, but highly recommend you speak with your Oz accountant, who should know how to work the system to your advantage.  Ideally, it would be good if your accountant understands both the Oz and NZ accounting info in order to take best advantage of everything available for you.  I've worked with a lot of Oz investors in the past and they seem very happy with owning over here in NZ, and are especially happy with their buying power at the moment. 

I would highly recommend you get pre-financed if you can before going on your NZ spending spree, as the NZ banks have definitely tightened their lending criteria in the past year or so and will require you to have a cleaner credit history than you may have got away with 3-4 years ago. If you need a local mortgage broker, I'm happy to recommend. 

As for interest rates, check out at http://www.interest.co.nz/mortgages.asp  for a list of current mortgage rates. I am a local Hawke's Bay property finder and have been finding yields from 7.5% and above recently.  Single family homes in lower socio neighbourhoods (i.e. easy to tenant) are in the 8%-9% range and blocks of flats, depending on age and quality 9% – 10.5%.   

Current rent rates are available here … http://www.dbh.govt.nz/market-rent .  Personally, I am getting above these figures, i.e. Flaxmere 3-bed upper quartile is listed at $260 a week, I am getting $280 a week and the tenant is WINZ direct (WINZ deposits the rent directly into my bank account, so there's never a problem with missed rent) — I love Winz-direct tenants   Again, personally, I am not finding any problem with vacancies, contrary to the article that Clint has identified.  Clint is definitely right about structuring your portfolio to protect yourself from rental decreases — it's iimportant to fall in love with the bottom line, not the pretty house that you'll never live in!!

Something that is worth thinking about is leasing to horticultural workers over the season here.  The Hawke's Bay has an influx of about 14,000 horticultural workers (mostly pickers) over the season which runs from about mid-Nov. thru end-May.  There are a couple of options, one is to furnish the property and rent by the bed (about $90/bed per week) or rent unfurnished for market rent on a fixed term tenany to one of the companies managing the picker programs.  Workers (mostly men) come in from the Pacific Islands and Asia and there are a few rules to play by (such as max 8 people to 1 toilet) but all in all it's proving a good way to increase yields!!!  After the season, landlords are putting regular tenants in over winter on fixed term tenancies ending at the beginning of the next picking season.

I hope this is helpful to you.

Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

April 22, 2009 - 6:27 am

SHALES – depends on what your buyer wants. 

Most people I work with need/want a minimum of 10% under a live (recent) registered valuation, and 10% gross yield.  I have others who are happy to take neutrally geared as they are more interested in future growth and better quality property.

Line up your buyer, then go find the property.

Contact me via my website and we can take this out of the forum and go into more nitty-gritty details if you wish.

Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

April 21, 2009 - 8:15 pm

BLOGS – you're right, achieving massive growth over the coming few years is going to be virtually impossible compared to the last 10 years, however what we are in NOW is CASHFLOW SEASON!!!!  It's currently not about growth, we are in the "winter" season of property, it is now all about CASHFLOW, CASHFLOW, CASHFLOW.  And, there is TONS of it out there.

So, really, it's just a different strategy that needs to be applied to meet the requirements of the situation.

My 2 cents worth!
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

April 21, 2009 - 10:46 am

LINAR you've had legendary results and it's wonderful to hear your story.  Well done, you deserve the credit.

Cheers,
Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

April 21, 2009 - 6:12 am

SCOTT NO MATES – I always contract with lots of due diligence that I can back out on.  Have never been caught with a property I don't want. 

LINAR – Amen. Thank you!!!!

SHALES – Yes, bird dogging will definitely give you the confidence and you'll get really good at writing contracts!!   It also depends who you want to work with,  i.e.  the main audience you sell to.  My understanding of "buyers agent" in Oz is that you could be selling to mum-and-pop wanting a home to live in, i.e. a "purchase of the heart".  That is VERY different to what I do.  I only sell to investors, and the purchase is purely a bottom-line, do-the-numbers-work purchase.  Much more black-and white than selling family homes!!  Personally, I don't like the "advisor" role as I feel I could tell someone the wrong information that really doesn't work for them investment wise.  I find it much safer to just deliver what the buyer wants.  That said, I do work with advisors, but only on the finding end.

Vicky

[Playa ChickenMember@playa-chickenJoin Date: 2004Post Count: 128]

April 20, 2009 - 8:27 pm

SCOTT NO MATES —  I contract the property  from the vendor and assign the same contract to the investor for a fee.  Over time, I often sell more than one property to the same investor because I build a relationship with the people I work with, and if there's a renovation to be done, I project manage that, so the income stream doesn't necessarily end at one contract.

As I said above, it's all about giving the buyer what they want.

BLOGS — Clearly you have a lot of spare time and know you can do a better job yourself, so you wouldn't need the services of a buyers agent.

Happy buying everyone!
Vicky