peterhutchyMember@peterhutchyJoin Date: 2003Post Count: 16
Can any one tee up +ve cashflow property for me in NZ for under 50K preferably around 40k
I am willing to pay a spotter fee once a deal has gone throughFluffyMember@fluffyJoin Date: 2004Post Count: 35
You are best to contact Minimogul, Castledreamer or Westan on this site. They find cashflow properties in NZ.
All the best.
FluffyYorkerMember@yorkerJoin Date: 2004Post Count: 306
Good luck my friend. However if you look closely there are certain areas in Australia that you can pick up properties for under say $60k that is positive. I’d post them for you, but would prefer just to email them to you discreetly.PropertyGuruParticipant@propertyguruJoin Date: 2003Post Count: 1,502agileParticipant@agileJoin Date: 2004Post Count: 50
From the little I know of NZ RE I would agree with you. Perhaps Peter could arrange a joint venture with someone?
You never know, you can sometimes pick something up. the thing is that the cheaper the deal the more people want them!!
but yeah, we have something under 50 for sure
You would have to be on our mailing list though
joy to the worldpeterhutchyMember@peterhutchyJoin Date: 2003Post Count: 16
Thanks for your help everyoneVaslavMember@vaslavJoin Date: 2003Post Count: 86
Nothing is impossible.
i manage to get 2 deals in NZ less than 50000 NZD in 3 months period from MiniMogul
one 45K and one 48K both giving a return of 15% and 13% respectively
More to come
There’s no Such thing as No Can’t Do!!!!!
Ok, I’ve been looking at properties around 50k myself. My main concern is that I could be buying a “problem”, for example the place needs painting throughout and tiling work.
Now I understand that buying a problem and solving that problem is a way to make significant steps in investing, BUT (and I think it deserves a big BUT) there seems to be significant risks associated with this that investors may be ignoring for the sake of high returns.
If the investor lives in WA or in many other areas of Australia you canâ€™t just pop over to NZ when things arenâ€™t going well. Iâ€™ve personnel found that if I have a tradeâ€™s person do some work for me I generally have to make sure a) it gets done b) the quality is to the expected standard. I would not expect a PM to manage this for me.
So ok you get some with a good reputation to do the work â€“ the problem here is everyone has a bad day once in a while and how do you plan to solve that problem?
I know this is a little negative sounding but I thought it important to mention as Iâ€™ve not really read anything highlighting these factors lately.
So to conclude, donâ€™t just look at the returns and become blinded by them, risk is ok only when managed correctly. Many of the NZ properties Iâ€™ve seen (email or internet) have looked great but do your homework!
I suspect that in a year or so we may see a significant number of NZ properties on the market because they have become rundown and the current owner canâ€™t (for what ever reason) fix the place up.
Cheers for reading [biggrin]
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our database
Yes I agree.
however all other things being equal, the amount you would spend to tidy a place up should capitalise the same way into increased rent. Such as spending 5k doing a place up should add another ten bucks a week to the rent. Spending 10k should add another 20 bucks a week to the rent.
For example mine in NZ. I had to spend 9k on one and I got it up from vacant and previously rented for 95, to 115 a week now. That’s $20 a week more for a 9 k spend so 11.5 return on the reno. and purchase in the first place was based on purchase price vs 95 per week as is. So it was CF+ve both before and after the reno. But a much ‘safer’ investment after and more likely to perform as desired.
My second property I spent 14k on including new bathroom but the rent went up from 100 p.w to 130 per week. so it was worth it there too. Again, the CF+ve-ness before the reno and after wasn’t actually that different, but the chances of it lasting many years as a cash cow went way up.!!
not to mention that I added value.
And on the second one I didn’t lift a finger except to make phone calls. So it can be done and yes it is still worth it, but yes, some of the (NZ, cheap, CF+ve) properties need a bit of maintenance. Luckily the 50’s and 60’s houses as a lot of the cheaper +ve ones are were solidly built and can be renovated reasonably cheaply – I mean you don’t need to put smeg appliances in them or anything!
Making it work is about what you need to calculate when you buy based on your builder’s report and the estimated cost to repair. I could walk through a house now and tell you how much $$$ it would cost to get it up to scratch, it doesn’t take long to figure out a ballpark figure once you have done a reno or two.
also worth discussing with a rental manager the maximum price that could be achieved and tell them your plans. they could guide you as to what is a popular feature for that market. It might be anything from heating to fencing to garden sheds for firewood etc. Actually on that note one tenant said ‘I really like the place but it doesn’t have a shed or garage for bikes (it just had a carport and a verandah.) so I told the tenant if she was willing to pay an extra $5 bucks a week I would put up a shed. The shed cost $500 bucks for a kitset one and including a proper concrete pad underneath etc so it will last and not rust out. return on shed – 50 percent per annum, i.e. free shed in 2 years! All those kind of little things do affect the bottom line. Steve would say ‘money follows management’.
He would say that someone else that had bought those same deals as me could have potentially had a nightmare with them because they didn’t ‘manage their investment’ the same way. Not meaning property management either, meaning, the decisions and choices you make, the information you get, the relationships you make, etc. A property manager (for example) can push your house harder than others on the market or work hard for you if you need a tenant, just because they like dealing with you and find you easy to work with and prompt, business like etc. All that kind of stuff goes in the mix and will determine whether when you ‘buy a CF+ve property in NZ’ it will work great for you just like in the text books, or not!
i.e. it’s up to you. And BTW when the landlords get the one they think is a lemon and give up saying it won’t work, just sell it – I want out – then guess who will put offers on them, buy them, and and sort them out? and unlock the CF+ve yields that were there all the time if only the landlord had had a clue what they were doing? people like me and my business partners and other people who are experienced investors in NZ and know what to do to make it work as desired.
joy to the world
Points well made, very good examples [happy3]
I think there is a lesson to be learnt there, that is isn’t just a simple “buy and let the cash flow in” approach you’ve actually added value to maintain a long term cf.
How easy is this for people to manage that donâ€™t live in NZ, I assume you have some examples of good and bad situations – the info may be of help to people on this thread as a small indication of what is required to succeed in NZ.
I live in Karratha and for a fee find quality cash positive deals there, email me at [email protected] to join our databaseSupa FreakMember@supa-freakJoin Date: 2004Post Count: 101
Dear Mini ( and other NZ gurus)
Is it necessary for Aussies to go to NZ to set up their finance, organise a power of attorney, check out the market…etc.
Or can the bird gods (oops!!) do that for us!!
re: finance, no you shouldn’t have to go there to sort pre-approval though it might take a few weeks. If it’s quicker well that’s awesome. We recommend clients get preapproval first. you will be dealing with a NZ lender most probably but for example the link for finance at this very site is a joint venture between aus. and NZ brokers, a lot of the form filling is done at this end. some of our clients have used these guys to get preapprovals sorted. we don’t have any kickback or anything. also there are many other NZ-friendly brokers floating around, have a little looksee around the place
re: power of attorney, that’s between you and your solicitor to organise. you may or may not need it. during your pre-approval process you will find out if you need it or not, it’s usually to do with finance rather than purchase itself. as far as I know you don’t need power of attorney to buy properties, you can do it all by fax. we have a special fax clause in our contracts as standard. we definitely have several solicitors we recommend that have proven to be on to it and reasonably priced but you are welcome to use whoever you want. we recommend a NZ lawyer not an australian one for nz purchases.
re check out the market – yeah that’s basically the leverage in a nutshell is our knowledge of the market.
You may or may not end up using a bird dog or you might like to go over yourself and check it out. whichever way you go make sure you do your homework as the less question marks you have about everything from rental demand, the neighbours, the rental manager, the condition of the house, the area, the street, who’s going to fix it if it goes wrong and how much, etc etc etc the more likely that it will work out for you.
hey scottB, re: “added value to maintain a long term cf.” yeah – I didn’t have much capital to start off with so I chose to buy a dunger at the bottom of the bottom of the market. and do it up as compared to buying an already done up one the yields were going to be heaps better. basically you pay top dollar for the ‘nothing to do’ properties and the more problems you solve the more you can make. however if you have more money than time then just purchase them at a premium from someone who has done the work. So i did it the reno way because that is how come mine ended up 20 percent plus yields on purchase price. plus I was trying to create equity for myself to get started. It worked.! I am particularly proud of my second reno where I didn’t lift a finger except to make phone calls. that’s my kind of reno.
joy to the worldRodCMember@rodcJoin Date: 2002Post Count: 335
If you’re pushed for time you’ll will probably get great leverage out of using one of the birddogs who operate in the areas you’re interested in.
If you can possibly manage a few days though, I would recommend going over and driving through some of the areas to get a feel for the place.
Things can be quite different when you’re “on the ground” compared to photos on the internet.
Even if you subsequently purchase through one of the bird dogs, you’ll have a greater appreciation and understanding of what you are being told.
Mini’s quite correct. It’s best to use a NZ lawyer and also a good idea to get preapprovals sorted out prior to purchase.
Rod.robstaMember@robstaJoin Date: 2004Post Count: 22
Im a kiwi, and have lived in most areas from Auckland to Gore, so have a good understanding of most of the country. If you are still looking, I would be happy to source a property for you just PM me the details and your requirements and we can take it from there.
Rob[cap]pgrimParticipant@pgrimJoin Date: 2004Post Count: 21
i have a quick question about NZ property. if the property is 20 years old or less can you claim depreciation as a tax right off?
thanksRodCMember@rodcJoin Date: 2002Post Count: 335
NZ doesn’t have the same age limit on depreciation on buildings that Australia does.
You should be able to claim depreciation on your NZ tax return. I don’t think you’ll be able to claim NZ depreciation on an Aussie tax return.