I would like to know the advantages & disadvantages that arise when investing in a property OS,
Besides the obvious I was wondering if any one has done this and has had problems regarding any hidden pit falls. Or nay hidden costs and charges and how hard it was to find an estate agent that is trustworthy and can manage the property,And when purchasing this property it was only seen over the internet and not in person, but had someone look at it. To advise of what it looks like
Also I was wondering how hard it was to keep up the maintenance on the property
And for the purpose of this question I, would say that the house is in NZ,
lister
Hi Lister,
I bought all of my NZ IP’s via Internet (planning a first visit around April) and I would say one of my biggest problems so far has been getting tradies to firstly quote and then get started on any work that needs doing.
I would also advise explaining from the very outset that you require your PM to inform you of all and anything that occurs with regard to your IP the day it happens.
9-months down the line and I am now very close to the light at the end of the tunnel with a new PM and lots of e-mails and phone calls to tradies.
Long distance and sight unseen investing can be done it just requires patience, due dilligence and an ability to nag at people until you get the results you desire.
I am sure that many other forumites will add their 2-cents to your question.
Cheers, Nobleone. [biggrin]
“Making mistakes is just another another tool for learning.”
Originally posted by lister_79:I would like to know the advantages & disadvantages that arise when investing in a property OS,
Besides the obvious I was wondering if any one has done this and has had problems regarding any hidden pit falls. Or nay hidden costs and charges and how hard it was to find an estate agent that is trustworthy and can manage the property,And when purchasing this property it was only seen over the internet and not in person, but had someone look at it. To advise of what it looks like
Also I was wondering how hard it was to keep up the maintenance on the property
And for the purpose of this question I, would say that the house is in NZ,
lister
Different Laws – similar but different. Can be changed at anytime both here and OS. If the OS country siezes your property who are you going to complain to? Certainly not your local member.
Different currency – Notice how our dollars value fluctuates on the news everyday? Well it changes more often than that. You’d better hope for favourable conditions or at least that the status quo remains
Different customs and culture – Are you aware of the ethnic problems? The ways of dealing with said problems. Speaking of NZ what if your tenant decides that he/she will take out the All Blacks loss on his stupid Aussies property?
Different Language – Kiwi’s use different terms – get this little detail wrong and you may have to prepare to feel serious financial pain. New Zealand has two official languages.
Distance – nobody will look after your property like you will. A PM may look after it but at the end of the day emails and phone calls will not replace your physical presence. If the proverbial brown stuff hits the fan you are a long expensive way away. Heaven forbid that you need to be there any length of time or need to go back several times.
Are you aware what happens to interstate and foreign buyers at the Gold Coast QLD? Well you may find out that it happens elsewhere as well.
These are the pitfalls in investing in property OS in my opinion. As for the pitfalls in investing in property in any western nation at the moment…. well you could consider “due dilligance” with the phrase House Price Crash, or Interest rate hike or Negative Equity
Gee Torachan,
Would you like to possibly add anything negative to your post? [blink]
So nice to see such optimism… Have you by any chance been burned by overseas investing?
Cheers, Nobleone. [biggrin]
“Making mistakes is just another another tool for learning.”
Investing OS?? what could the dangers be?Kiwis![biggrin]
Originally posted by Nobleone:Gee Torachan,
Would you like to possibly add anything negative to your post? [blink]
So nice to see such optimism… Have you by any chance been burned by overseas investing?
Cheers, Nobleone. [biggrin]
“Making mistakes is just another another tool for learning.”
Don’t get me wrong. I am very optimistic. Things are going extremely well for me. I am very bearish on housing for the medium term. Long term it will be a great investment again but not until after the crash. Many bargains on the immediate horizon [evo]
Would you like me to candy coat the risks of borrowing large sums of money, buy an asset in a foreign country, which may or may not be what Lister thought it was?
Buying property is a large investment. Some advise that for every hour you spend earning investment dollars you should spend researching the investment. Looking up a kiwi web site and checking out some digital photo’s is just asking for trouble. For instance there are serious structural problems in houses built xxxx – xxxx (I won’t say exactly when because I know for a fact that some on this forum have CF+ houses that are a timebomb…. you can’t tell them)
So Lister if you want to “invest” large sums of money that you have to repay if things go wrong then be my guest. As I said if it goes pear shaped you’ll lose lots of money and I’ll get a cheap house. Thanks in Advance (BTW if you are buying for me 3-4 bedrooms and a nice yard at 30-50% below today’s figures)[party]
Foundation, you just gave me a huge laugh – and I’m a Kiwi! I daren’t ask you to elaborate!
Nobleone – possibly the problem you have with tradies at present is because of the housing boom in NZ – builders and all others tradies are flat out with work. Things should improve as the housing boom slows down and then I think you will find the NZ tradies are very reliable.
Shar
Hi Torachan,
For instance there are serious structural problems in houses built xxxx – xxxx (I won’t say exactly when because I know for a fact that some on this forum have CF+ houses that are a timebomb…. you can’t tell them)If you feel so strongly about assisting Lister to make the right decision regarding his O/S investment plans then please share the info you have alluded to above, so that any other potential new investors (including Lister) do not buy into the same ‘timebomb’ that ‘some’ current forumnites have bought into.
We are all here to share any information, insights, theories, pitfalls and plans that we may consider helful to the persons posing the questions so please share what you know.
Cheers, Nobleone. [biggrin]
“Making mistakes is just another another tool for learning.”
Hi Shar,
I agree with your explaination re NZ tradies.
I think NZ needs a bit of a poulation boom with an emphasis on importing tradies.
Alternatively the govt could ask the electricity Co to shut the power off between 6.00pm and 6.00am so that Kiwis would have nothing better to do than make babies… I suppose then the govt would also have to impliment special kindy school lessons with the emphasis on training up tradies… But I don’t think I can wait that long to get the jobs done on my IP’s. [biggrin]
Cheers, Nobleone.
“Making mistakes is just another another tool for learning.”
Cheers for all (most of the information gained) just to add a little bit of spice to the topic,
having a large family spread all over in NZ the investment would be well looked after, but I will not be renting to them that’s 4 sure[biggrin] but I do know that getting tradies to work would be no problem as having someone else apart from the PM to look after the property and get things looked at and actioned is a good thing,also that would save travels os to check on the investment and all the costly phone calls as well, and as for market changes would get first hand news on that frount [biggrin]lister
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