Right which is the best Auckland suburb South of the Harbour Bridge to BUY a reasonable price Apartment min 2 bed, bathroom, car lock up..[8D]
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Right which is the best Auckland suburb South of the Harbour Bridge to BUY a reasonable price Apartment min 2 bed, bathroom, car lock up..[8D]
City Centre offers the widest range, but I prefer parnell, newmarket area.
Other than that, theres really no where else.
There are apartment developments in other isolated areas around the city. Aside from numerous terrace developments there are bona fide high rise apartments in Remuera, Takapuna, Henderson, even Manukau. Also City fringe locations like K Road, Grafton, Eden Terrace, Grey Lynn, Ponsonby, Herne Bay.
As with Huds I like Parnell and Newmarket although I also like selected CBD locations - mostly character buildings clustering in a triangle around Albert Park, Shortland Street and Queen Street. I suspect this segment of the apartment market will hold up best because they can offer character, location and in some cases not to be built-out park view benefits all those dodgy offers along the Hobson and Symonds ridges fail to match. (in the last slump, perenial character apartment favourite "The Brooklyn" held up quite well despite some cut price offers elsewhere).
Has anyone had anything to do with NZ Finance & Investments Ltd. They are selling apartments in Auckland, they organise the finance (100%), the property etc and use tax savings as an incentive. Any comments would be appreciated.
New Zealand Finance & Investments is a subsidiary of Bluechip. I personally avoid investments that require or are sold on the basis of "tax efficiency". With real estate such an equation invariably involves you being "negatively geared", which is a nice way of saying leveraged and loss making.
If you want to invest in an apartment be patient and buy what makes sense at the front end of the equation, not the fancy stuff that involves accountants and salespeople. The high dollar is still impacting student numbers and there is plenty of supply coming online in the apartment market.
I am sure that Bluechip and their brethern will all offer those enticing rental and maintenance guaranttees and that wonderfully low insurance policy that only they could source for your short-term 2-year benefit, then they will cast you adrift in the real world of market rents, vacancies, property managment fees, maintenance costs and escalating insurance costs. Then to finally cream you off the price of the apartment drops!
what do people tink of apartments at albany?
Very big glut of apartments over there, some of which (especially those around the Old Albany Highway) are aimed at the Asian student population, i.e., 95% at Massey Albany campus. Due to a considerable drop of Asian studnets, those apts are not driving high rents at the moment. Peak time traffic is atrocious in Albany, and with no upgrade to the Auckland motorway within our lifetime, it is likely to get worse, regardless whether you work in the City or in North Shore. This would definetely impact on demand for such properties.Quote:
quote:Originally posted by Dazza
what do people tink of apartments at albany?
Personnally, if I wanted to buy something in Albany, I would go with land only, possibly more towards Dairy Flat, and subdivide.
any advice for apartment purcahses in CBD. Daughter at university. For resale what must I look for
If you want to do it for approaching 2007 academic year I'd pick that paying rent would be money better spent than paying interest or opportunity cost on an apartment. Unless you spot a bargain / cheap mortgagee sale I don't see much scope for capital gain and for all but the crappiest apartments yield is marginal versus interest / cost of capital. I'm not yet convinced the interest rate cycle has peaked either despite persistently hopeful commentary in the media.Quote:
quote:Originally posted by Tim
any advice for apartment purcahses in CBD. Daughter at university. For resale what must I look for
In terms of long term value rather than a special situation:
Something overlooking a park or sea. Don't count on planning laws or surrounding low rise buildings to protect your views. Don't be fooled into thinking it's an "investment" so these things don't matter. The kind of tenant you would prefer would like these things too.
One carpark per bedroom. Even if not needed it helps resale.
Most banks apply lending restrictions on apartment below a certain size. Depending on the lender around 35 to 40m. This reduces the scope of the purchasing market to cash buyers or people with alternate security. So avoid small apartments despite tempting yields or be prepared for slow resale.
On size also - apartment living comes with different expectations in terms of size but experienced apartment dwellers know what to look for... Storage, Convenient waste disposal, High Stud Lifts or Service Lifts, Adequate Lift Ratios, Secure Postal Boxes and Lobby, On site management, On site parking, Proximity to amenities (Think "micro proximity" - people living in the CBD only drives cars when they leave the CBD - so the right mix of shops and amenities within a few hundred metres is a huge advantage).
As a former apartment dweller I preferred character, high stud and large windows for natural ligght. Was happy to sacrifice bedroom size for living area size although character places often provide bigger rooms all round because of their lower sunk cost. People moving form the burbs to the CBD often have inappropriately sized furniture for CBD dwelling so a large living area provides attraction in more ways than one ...later once I'd tried and liked apartment living I gained an appreciation that the living area gets lots more use than in a suburban home and needs to be a refuge. Something tiny struggles to deliver this.
I like advice, trying to find 2 bedroom apartment in city for 2 daughters. Cannot understand $350 will rent only a small aprtment you will likely go insane in 45m2.
Where can I get a better deal.
Can I suggest that one of the best things about leaving home is actually 'leaving home'. Going to varsity in a new town, having to find your own flat and deal with crap flatmates who eat all your food and don't pay their bills etc is actually one of the best places to start learning the realities of life. You may be doing your daughters a disservice by providing them with their own place to live.Quote:
quote:Originally posted by Tim
I like advice, trying to find 2 bedroom apartment in city for 2 daughters. Cannot understand $350 will rent only a small aprtment you will likely go insane in 45m2.
Where can I get a better deal.
Just a thought.
Interesting to see if he does get $500 week rent.What increases property returns is leverage which is difficult to do with GPG and IFT.
From a US site 'Smart Choice Realty', but the figures should be similar. There are also some Estimated Appreciation Tables on the site showing end values, etc.
http://www.forsmartchoice.com/charlotte.asp
[i]Housing can be a good investment
How do stocks compare with home investment?
The National Association of Realtors reports the median existing-home price increased a little over 4 percent last year, while Freddie Mac said home values increased 7 percent in 2000. At the same time, stock indexes finished in negative territory.
However, the true return on a home investment should not be based simply on home appreciation, but also the amount leveraged. Homebuyers typically use their own money to cover only 5 to 20 percent of the home purchase price, yet the appreciation they realize is based on the total value. In other words is a leveraged buy-in.
In addition, homebuyers receive tax benefits for their investments, in the form of deductions allowed for mortgage interest and property taxes. This leveraging of borrowed funds gives housing a return far in excess of the market's appreciation.
"Housing is not a quick-in, quick-out investment.” However when purchased for the long term, housing is one of the safest investments a consumer can make. In addition to the savings accumulated through a buildup of equity and the tax advantages, a home provides shelter. Absolutely no other investment provides this benefit.
How does buying stock on margin compare, you may ask? Most people can only buy stock on 40% - 50% margin, and you cannot buy stock on margin in a tax-advantaged account such as a 401K or IRA. But for the sake of argument, let's say you purchase $15,000 worth of stock with the original $10,000. Now let's assume that the stock and the house go up in value by 7% over the next year (a likely probability in the case of the house, since the average home price in the United States has gone up 7% per year for the past 50 years.) At the end of the first year, our stock investor has made the tidy profit of $1,050 ($15,000 x 7%). Our property investor, on the other hand, has made $7,000 in equity on his or her rental home ($100,000 x 7%). PLUS the tenant has paid down some of the mortgage (albeit a very small amount in the first year). The effective rate of return for our stock investor is 10.5% on the original $10,000 invested. Our property investor has made a 70.0% return on his or her initial $10,000 investment.
Much like stocks, the yearly increase is a compounding return on investment. Unlike stocks, property rent will rise over time and the house will yield a positive cash flow (income) as well as build equity. Some stocks may pay a dividend, but it pales in comparison to the income that will be derived from property rent and appreciation over time.
Property investments also have leverage advantages over stocks. In the example above between the investors, the difference in the rate of return (10.5% stocks vs 70.0% property) is a result of leveraging. A bank or financial institution will lend you most of the purchase price of real estate since it is considered a low-risk loan. Although this money is borrowed, you as the investor do not have to share the increase in property value with the lender. In effect, the lower your domain payment, the higher your rate of return will be.
As you accumulate property and it appreciates in value, you can refinance, obtain second mortgages or use other financing methods to purchase additional property. As rents increase over time, the higher rents will most likely cover the additional equity utilized. This is an example of the tremendous advantages of leveraging available with real estate investment. In time it is entirely likely that your real estate holdings will provide the equity to purchase more property, relieving you from using your personal capital ("sash on hand") to keep investing.
Another distinct advantage property investment has over other forms of investing are the tax breaks. While your rental properties are appreci
Does anyone know where to get a comparison of current market rentals vs existing rent guarantees to try and estimate the capital effect once the rent guarantees expire?