Has anyone looked at investing in Greymouth? What was it like? Were there any problems getting tenants? Or good tenants?
Are the returns good.
I am thinking about adding it to my portfolio and I would love to hear from anyone that has done a recky through there.
Thanks
Hi cymberlineshakespeare
i like greymouth, for the following reasons
largest center on the South Islands West Coast, it will always be a major town for that reason,
It could have some upside with the Coal deposits in the area.
Nice little city.i don’t like greymouth for these reason
the price has already risen heaps and will struggle to have much more upside in the near future.
Yeilds therefore aren’t that attractive anymore.thinks to watch out for
all the highest returning properties are leasehold (something to be aware of)
I wished i bought there back in 2003 when i was considering it [
].
regards westanhttp://www.nzpropertytogo.com
check it out !Hey Westan,
Thanks. I agree on all the reasons for liking and disliking [biggrin]
Have you checked out the leasehold scenario? Are there any catches? Why is leasehold high return? What is the risk?
Thanks!
cymberlineshakespeare
with leasehold you don’t own the land, just the building, in theory the lease may one day change the arrangement ie -put up lease etc.
Napier has large areas of lease hold land they will soon or have recently dramatically increased the annual lease fee.
regards westan
http://www.nzpropertytogo.com
check it out !Westan,
Thanks – that gives me an idea of what to look out for – sounds like I need to scrutinise the leasehold contract carefully!
Thanks
Cymber
Hi All
If memory serves me correctly didn’t Greymouth get hit by a tornado a few months ago? It has a bit of a reputation of being NZs tornado ally or so the article I was reading stated. Don’t know if I would buy in a place where your roof got blown off on a regular basis.
Kerwyn.Hi Kerwyn
you are right about a “torando” ittting greymouth recently, as far a a repution for strong wind damage that’s news to me, i’ve not heard that before (but that doesn’t mean its not true). I thought it was a freak event ?
regards westan
http://www.nzpropertytogo.com
check it out !Hi Westan
Hmmm! can only report what the article I was reading said, may be the journalist was being flippant, or hoping to embellishing his story?
Still weather patterns are changing and there could be more incidents in the future.
Kerwynkerwyn,
I had forgotten about the tornado. However it seems to me that insurance is for those risks – just as if you were buying in Wellington or Gisborne which are highly prone to earthquake, or flooding in manawatu.
You have to accept some risks in your IP’s, and you hedge with insurance.
Cymber
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