- muppetMember@muppetJoin Date: 2003Post Count: 900
Nice to hear from you. Thanks for your association’s newsletter. Good to read your posts on housemouse.
Yes there certainly has been a huge capital gain in Nelson. It’s getting too expensive to invest there now unless you want to be -ively geared.
RegardslifestyleMember@lifestyleJoin Date: 2003Post Count: 22
Hi ya, I’m ex pat kiwi living on goldcoast.Have two props on coast and am neg third one in Christchurch where I come from. I have a friend/partner in ChCh who keeps an eye out back there while I keep an eye out over here. We have come up with our own prop template and if one comes up there we move on it or vise versa. Present deal 3bd town house,inner city,block of 4.$182.500. Renting @$300.00.No capital gains tax I think, and NO BODY CORP.My other friend is an owner builder, he say’s there is a building boom in CHCH at the moment. So be aware of over supply.MiniMogulParticipant@minimogulJoin Date: 2002Post Count: 1,414
>Hey you fellows sure know how to pick the rotten places to >invest. what is the point of buying in a town that is almost >dead.
what rotten/dead town are you talking about???
>there is absolutely no point in buying in a place that has no >capital gain.
Yes there is – cashflow! (even if that were true – and even towns like T**** have capital gains.) Buy at 5k in 1991, worth 50K now.
(actual figures from KtKiwi a while back if I quoted correctly.)
At 5K back in 1991 it was rented at 20 per week. Sounds ludicrously low eh!!. But the rent (for the 5K house) is $130 these days. That’s a pretty good return if you add together all the rent you got back over the years, indexed for inflation and slowly going up from $20 to $130 per week. After the 5th year that would be like ‘free money’.
I’m sure that people buying the $50K houses rented for $120 per week *now* will be doing similar calculations in ten or 12 years time. Capital gain will happen. And I reckon the growth won’t even be that different from the national average.!!
Anyway so you have your cashflow properties which support the shortfall from your capital growth negatively geared properties. So you don’t have to work more hours of earned income just to keep buying houses, and so you don’t max out and can keep buying indefinitely. i.e. Steve McKnight 101!!!
>buy in a city that has high population growth and high capital >gains.
I am not arguing with the fact that a balanced portfolio would have some of those properties in it.
>If you have trouble finding a good tenant in a bad area then >often you have to compromise by taking a dodgy tenant then >you can quickly eat up your imagined profits.
That is true and from now on i am going to make sure there are no gang members in the streets where I buy!!!
>Buy in Nelson and get me to manage your property.
If I can ever afford to get in to Nelson…yeah fer sure! Hey – if you ever find a dump in structurally sound condition for a bargain, let me know! for a cut of course!!
MinimuppetMember@muppetJoin Date: 2003Post Count: 900
Great to have a chat with you the other night. I hope your trip to NZ was successful.(where did your posting go?)
It certainly helps to make a reconnaissance trip to areas you are interested in. I think you get a better feel for the area and as Mini said you can check to see if there is a gang headquarters nearby.
Min, I see the prices have escalated by 58% in Nelson during the previous 12 months. I wonder if the rent is keeping pace with the increase in house prices? It will definitely be harder for the lower income people to live there.
RegardsRodCMember@rodcJoin Date: 2002Post Count: 335
I didn’t actually add a new posting, I just edited an old one to get rid of the email address and I think this bumped this topic back to the top again.
I had a great trip – spoke to lots of people and learnt heaps. There’s only so much you can learn via a computer screen. You get a much better feel for any place by meeting locals and walking the streets.
Rod.watsonnrMember@watsonnrJoin Date: 2003Post Count: 2
Hi QueenBee. To qualify myself, I am a New Zealander now living in Australia with IP’s in NZ. You don’t pay GST when you purchase a residential property in NZ. The only time you would pay GST is if you are buying property as a going-concern, such as a farm.CrazyCatParticipant@crazycatJoin Date: 2003Post Count: 4
It’s so great to have so many knowledgable heads all together in one place! I’m hooked! I’m so intregued, I can’t even hear my kids moaning and fighting with eachother! It’s so therapeutic![^]
I’m heading back to NZ in November after 2yrs in the UK. I know I want to start up my portfolio of IP’s in NZ but where???? My Dad has 10 acres and 3 bed place up in Dargaville…he’s not lived there yet as has been visiting me over here. Does anyone have any insight on property up Northland way??? All I know is you can buy a 3bd family home on 1/4 for $80k….Should I just grab one of those freehold, rent it out, then borrow against it to buy another prop say in wgtn/kapiti coast, where the rest of my family live???
I’m just a umming and arring here!
Any advice? I too am just a newbie in the NZ market. Just sold my first ever house here in the uk. I bought it a year ago for £39k…just sold it for £74k. It would be a big deal if I was staying on here….but i’m not! I’m sending it on to NZ and getting those NZD’s.
Thanks again to everyone who has taken part in this discussion…i’m now a clued up woman!
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