Anyone out there got any property investments in fiji who would like to share there experiance.
Thinking of investing in a complex at denerau.
There are two reasons for investing in property. (1) Income (2) Capital gain. Income is the most important one in spite of all the nonsense spouted, and capital gain can be a bonus. Do you see any hope of either in Fiji?
You don't have to rely just on Rod. There are several wonderfully honest and upright Kiwis over there developing 'fantastic investments' flat out, simply out of the goodness of their hearts to assist less fortunate fellow NZers.
Bayleys were pushing developments over there about 2 years ago big time....I had a look and almost spewed and the building standards ...then I looked at the politics of the country...a huge red flag jumped at me...couldnt get back on the plane with my wallet closed quick enough...the wife was keen
Anyone out there got any property investments in fiji who would like to share there experiance.
Thinking of investing in a complex at denerau.
I suspect few native Kiwis have much experience of Fiji Property Investing. The market is after all tiny. Not many "global" markets New Zealand could move but this is one of them!
I have a Fijian friend who was a landlord in the local (rather than tourist) market. Essentially prices are cheap but returns are low.
Fiji is politically unstable. This is a red flag. You may however earn a return buying after a coup - but more probably buying something already built and in distress than something off the plan. Aside from the politics they are a tiny, third world country (astoundingly we are a giant, highly developed, first world economy in comparison). This means the market will be volatile and unpredictable. If we think the New Zealand economy can turn on a dime, imagine an economy not much bigger than a provincial city?
Risk Snapshot:
Fiji is for those with a higher than normal risk profile
Cycles change sharply
There will be periods where your investment costs you money rather than pays you rent. A debt funded investment will require a suitable cash buffer or alternate security and an amenable bank manager
Tax outcomes can be capricious between two countries
As can Forex (and its impact on tax and lending ratios)
doesnt surprise me....what a shambles the place turned out ...mind you there are plenty here in NZ at presentunder Bluestar...heard of one development where they sold the appartments several times over through their own different companies...of course clipping the commision ticket as they went through...hope they get time in the slammer
I think investing in Fiji RE is very high risk, potentially very low reward.
Fijian government risk
Fijian economic risk
The number of Kiwis/Aussies looking to buy an international vacation property is likely to crash hard with slowing economy and fast rising fuel/travel costs
If the price of oil was crashing, and the Fijian military government was declaring elections I'd still run, rather than walk away due to the illiquidity of Fijian RE.
Fiji
Reply With Quote
Originally Posted by ritchie
Bookmarks