Quote:
quote:Originally posted by duncan macgregor
WINSTON001, Different strokes for different folks.
1. Buy 2-3 sections in central otago is not to exciting an idea to me. Rates come off for starters plus selling cost against likely profit margin.
2. Buy a large section with a view to subdivide is not for a novice. Unless you know exactly what you are up against, dont even think about it, you will be shocked at all the unexpected cost and crap involved.
3. Buy a geared commercial property that is already up and running is your easiest option. You can do all the sums work out profit margins etc etc.
4. Buy industrial property. Be carefull of what it is Factories have a habit of closing down do your homework on what it is.
5.Bare land and build not if you are a first timer you must be experienced for this.
6. Property is the easiest way to make money. Look at mortgagee auctions,remember you are a cash buyer only buy a completely checked out bargain. Get it up and running first, then do your sums. Work out rent, rates, upkeep expences, against what you can borrow on the property so that the property is self supporting keeping in mind that you dont want to show a profit. When you worked out the sums borrow that ammount and buy your next one.
If you buy right you will get about 90 pc of your money back, do this over, and over again. All you want is a capital gain when you sell, which you do next time the market peaks. Doing it that way with enough cash in reserves for a rainy day is the easy way to make money. BE a cash buyer that insists on a bargain. To make real money you must use the banks money. macdunk
Wow - totally agree with all that. I did no.2 - and believe me Mac is right. Still have the property and it has increased 100% in value at least, but I'm not going to subdivide now because of the costs involved.