I have only recently read “0-130” in the last week and just joined the forum. It has already taught me a great deal.
My research of the past couple of weeks has lead me to discover that +CF IPs are very hard to find anywhere in Australia at this point in time. I have also noticed that a lot of you seem to think NZ is the way to go.
My 3 Questions:
1) Is there anywhere left in Australia where these +CF properties can typically be found?
2) What areas in NZ would you recommend and what type of dwelling generally has better returns?
3) What are the legal and tax obstacles, benefits, ramifications for investing in NZ?
Thanks
PatrickHit Rosebery, Tasmania HARD. Go son!
I am new myself and would also appreciate any NZ feedback.
patricklynch74 – check out houses in Mt Isa.Regarding NZ, do a search on the forums. Places have been discussed manyyyyyyyyyy times…
Cheers
MelPatrick,
When Steve wrote his book, he was able to buy suburban properties that were cashflow+. This is generally not the case now. Think of it like cars… when Steve wrote the book, he was able to buy oldish commodores, lasers and mazda 626’s- and able to profit from them. Now the equivalent would be purchasing datsun 120Y’s and escorts… The market has changed.
You can still purchase CF+ properties- no worries- depends on what you’re looking for. The repair issue would concern me- have you got spare cash to do some fixing?
Also, tenants in this market can be very vulnerable to landlords upping rents to get that elusive 10.4% rent. As for me, I’m happy to get less rent, keep my IP’s competitive in a growing rental market, and buy a property that won’t have repair problems.
If you’re looking for pozz geared properties, you’ll find them, but if you’re seeking a bit of growth, and about 8% return, you will have a far broader choice, and will be buying places that tenants will want to live in.
kay henry
Excuse me Kay,
Can you please tell me which areas are returning 8% rental, and are these returns “gross” or “net”???
I find most people are struggling to achieve 5% in most areas. But then, maybe you are having more luck than most.
Jo
Regarding investing in NZ, visit the PropertyTalk forum http://www.propertytalk.co.nz
GP
Hi Patricklynch174,
Steve has just released a CD of an interview he held with someone in the know re: NZ and all the implications. I’ve bought it but only started listening to it in the car today.
Cheers,
Gatsby.
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