Hi JoeKing, sounds like you did some vendor financing deals - lease options or wraps or similar. Well done on your success.
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Hi JoeKing, sounds like you did some vendor financing deals - lease options or wraps or similar. Well done on your success.
WNS
Yes, WRAPS. SO!! easypeezy, gratifying and rewarding having someone ring and say "thank you for the opportunity to buy our own home, come for coffee and see the new bathroom", instead of "Mr Landlord someone ran over the letter box when ya gonna come fix it!"
Cheers
JK
I'd like to throw my tuppence worth in here.
My son-in-law and daughter started out about 8 years ago with Sweet FA. My son-in-law could hardly read or write when he left school but decided to self teach himself by reading books on property investment ( I guess I don't have to say who the author is). While working on a farm and with 3 kids under 4, they bought their first investment. A cheap section in rural Waikato and a "house to go" in Hamilton. The house and section were married up, a bit of tarting up on the inside and out (by the kids themselves and they are not builders by any means) and putting in a tenant who is still there 8 years later. Total cost to the kids (or should I say their bank, $65,000.) Three years later this was followed by a stint in Oz for about 2 years. When they came back, they started back into the propery market while all the time, milking cows twice a day, seven days a week.
Second house, a mortgagee auction in very rural Waikato. House was pretty run down so they lived in it for a year while still working on a farm. (They rented out the farm cottage they could have had with the job). They put in a basic kitchen, basic bathroom and a bit of paint inside and out. Put in a tenant after a year. Cost of purchase two and half years ago, $49,000 plus the cost of a bathroom and kitchen which they bought all the bits from a guy who recycles house bits and pieces. Last week they got a contract to sell the place for $205,000.
Third house, again in another rural Waikato town. Bought another Mortgaee auction about 2 years ago for $65,000. Now have a contract to sell for $165,000. They've done nothing to this place.
Latest project, bought a Dairy Company house for removal. Bought a section in Rotorua and currently relocating the house to the section. They'll sell it when completed.
Two years ago they bought an acre of urban land for about $35,000. Sold it a year later for $115,000.
They've decided to pack up and move to Oz because their boss had sort of promised them a 50/50 sharemilking opportunity next season. He's decided to wait another couple of years and leave the kids milking for him.
Well, no way Jose, by the time they have sold up their properties plus some farm equipment that they've managed to accumulate, they will be heading off to Oz with the best part of $600,000 cash in their pockets. I don't know all the details about interst rates, rental incomes etc etc but I do know the rental income has always more than covered their outgoings.
So when I hear people moaning an groaning about how they will never get the chance to own their own home, I'm afraid it is falling on deaf ears here.
Year of The Tiger
BRAVO!!! Your daughter and hubby!. Just LOVE to hear success stories from/of ordinary people with extra-ordinary determination and attitude.(5 percenters)
Yep! it's true... YOU CAN! IF YOU BELIEVE YOU CAN!
For those who may be interested there is a DVD available called simply "the secret" a google search will show you where you can buy it. It will not be for everyone but for those genuinely looking for "the secret" to success it will be the best $60 you will invest.
Cheers
JK
Discl. I have absolutely no financial interest in sales of "the secret" DVD.
PS. I had breakfast with Robert K. a few years ago. A real down to earth guy, we talked about everything but property.
gj
yes its great
but i live in auckland.........
thats the thing peeps.... akl = 500k for a decent home...
my my has property gone off!
and SEC, dun u worry im all tied up in the ASX :D
great stories JK, and YOTT
U are a savage cat JK, a freak of nature... your sharemarket growth is highly comendable...
so you are getting approximately 300% growth per year, wow, what have been some of your best picks?... im looking at 100% growth min this year... best pick I made in 06 was AED...also got 55% off ppp (annualised return) last year...
Property is a topic where it is very hard to change a set mind...If you are currently in property, then no doubt you have been successful... if you are successful at something then it is hard to see the other side... and the other side is that 1st homebuyers are priced out of the market... end of story
The whole idea of a business man is to find, cheap discounted assets, not expensive ones..
There is no relationship between past performance and future performance... a guaranteed return, or percieved guaranteed return...creates increased inflow of investment... which leads to over priced, over hyped assets...
I have put 80% of my total wealth into australian dollars (ASX shares)... I dont want to hold NZ dollars when exchange rates and interest rates are unsustainably high... over the next 5-10 years its a guaranteed hedge against falling share prices...
show me current guaranteed property investment going forward....
currently I am a full time student, part time worker, mid time share growth investor...
I study at Uni... consider myself savvy.... not savvy enough for Property i guess...
[8D]
.^sc
Yes, the Sydney rental PE ratio may retrace fairly rapidly in the next few months as baby boomers flood the market with investment properties for sale to transfer money into their super funds before June 30 to take advantage of tax-advantageous transitional arrangements. House prices down, rents up. However I'm not sure rents are 'rising strongly' quite yet - the latest stats for Sydney indicate they're only up 3.4% for 06.Quote:
quote:Originally posted by cantab
The thing I take from Sydney is that people are choosing to rent whereas investors are not buying rentals, accordingly the vacancy rate is now very low, about 2% and rents are rising strongly.
SEC
In simple terms residential property prices in NZ have risen at a far greater percentage per annum over the last 4 - 5 years than have wages and rents. To me, at some stage, either property prices have to stagnate for several years, but at the same time rents and wages would need to increase by economic growth, OR property prices need to drop about 20 % to bring everything back into line. The price increases appear to have been fueled mainly by more mortgage debt and there is only a certain amount people can borrow and service. Once everyone is "mortgaged to the hilt" the main driver for property price increases is gone.
There is a very simple reason for the increase in property prices above the rise of inflation.Quote:
quote:Originally posted by Hommel
In simple terms residential property prices in NZ have risen at a far greater percentage per annum over the last 4 - 5 years than have wages and rents. To me, at some stage, either property prices have to stagnate for several years, but at the same time rents and wages would need to increase by economic growth, OR property prices need to drop about 20 % to bring everything back into line. The price increases appear to have been fueled mainly by more mortgage debt and there is only a certain amount people can borrow and service. Once everyone is "mortgaged to the hilt" the main driver for property price increases is gone.
1, Compliance costs for land developement.
2,compliance cost for building.
3, We now require an engineers report to cover minor problems.
4, It costs double to have your plans drawn up which must show every last detail.
5,If you are silly enough to think that the price of houses will drop, then good luck, try meeting the requirements to develope a new block of land and build on it.
6,Not only have the costs gone up but to develop new land normally requires a certain ammount to be gifted back for parks etc.
The price of houses will continue to rise at an ever faster rate. MACDUNK
Duncan I accept your point. I know people who have built new houses over the last few years and they are saying that building costs per m2 have gone up substantially over the last 2 or 3 years.
But at the end of the day people can only borrow so much and they can only pay what they can afford. People's incomes / wages must be the limiting factor in the end.
Duncan, do you have the current average m2 building costs to hand? I recall that you have posted these figures maybe a year ago
Sorry steve I dont have the latest figures. I got out the building game along with so many other builders because of all the stupidity, and rule changing. The building costs of compliance is unreal, i would hate to go along with all the crap of today. We never had a leaky home problem before the seventies, then we had rule changes by idiots who continue to change them. I have been warning people about this since the eighties. Had great arguements with councils, its time to move on. The price of new houses will increase faster than inflation. MACDUNKQuote:
quote:Originally posted by Steve
Duncan, do you have the current average m2 building costs to hand? I recall that you have posted these figures maybe a year ago
Hommel, Shrewdy and others.
It sounds like you have already resigned yourselves into the "rental rut". Unless you completely turn your thinking 180 degrees thats where you will stay.
Instead of looking at a dozen reasons why your CAN'T, just find ONE reason why you CAN...NOW!
Shrewdy...quote: "if you are successful at something then it is hard to see the other side... and the other side is that 1st homebuyers are priced out of the market... end of story"
Rubbish! I worked my **** off for 27 years before I bought my first home. Not the big 3 BR house I always wanted but a very modest 2 br flat in Rotorua for $39k, on $7k deposit 24% interest, and lived in it 5 years. Still have it plus the other 4 in the block!
I could have done the same thing 20 years sooner, with the right attitude.
You say Auckland properties are over priced. Why do you have to buy in Auckland? Why not buy a $80k property in say Opotiki, rent it out, build some equity for deposit on a modest Ak home, rent part of it to yourself and be ready to take advantage of the next property cycle in 3 years?
REMEMBER, McD's advice.... wealth is created using OPM (other peoples money).
Learn the difference between good and bad debt.
Think outside the square.
You CAN! do it today if you really want to.
You don't need spreadsheets, expensive strategists advice, consultants, etc etc all you need is to wake up in the morning and ask... "HOW! am I going to do it TODAY!"
DO IT!!!
Cheers
JK
Hi Joe. Not in the "rental rut" here. Own a very nice freehold home thanks. I just have no desire to own rentals I would rather invest in the sharemarkets. Alot of the "money" people have made in property has been made from capital gains, especially in the last few years. The real earnings growth (rent) has not been a great factor. It all works fine while prices are going up. Sooner or later if prices go up and up no-one can afford to buy any more.
I can't see house prices dropping, $2000m to build a decent house in Christchurch, plus rising immigration. Average house $300,000, deduct land component $250,000 and the building and improvements only cost $50,000
Rents stink in Christchurch and have to go up, then buying an investment property will make sense. It's happening in Sydney:
Tenants get the blues as landlords rub their hands
http://www.smh.com.au/news/national/...104983576.html
Investment property is hands down the simplest, safest, you're in control way to generate wealth using the banks money - not at a 5% gross yield though.