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  1. #41
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    Yes I agree Enigma. The main word in those types of property notices is "potential". As I pointed out, with changes like Manukau has implemented, that potential could be very expensive to realise.

    Each property does need to be researched, but if the Granny flat is free standing (which Mac Dunk was talking about)and at least 2m from the main dwelling and the kitchen has been permitted, as opposed to a sleepout that has had a kitchen added without a permit, then it is most likley you can let it out to the general public. If a flat within a home has been specifically built and consented with the appropriate fire ratings installed, then there is no reason whey that too cannot be a home & income.

    In the Botany area in the late 90's, early 00's a large number of homes were constructed with legal minor household units attached to the main dwelling so as to be home and incomes. The min section size to do that 'as of right' was 600m sq. So many in fact, were being built that in future stages of the subdivision, the developer reduced the section sizes to under 600m sq to stop it from being done, as the covenents couldn't stop it.

  2. #42
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    DINOSAUR, I have an idea that you may need to question the advice you are getting. Personal experience from someone that did it. I built about thirty 2brm granny flats complete with garages or car ports in the eastern suburbs of auckland two further south, three in rodney. All were rented out as income producers, some through reinz agents some properties were on sold etc etc etc. One buyer bought about 27 in total, over a three year period, he only bought properties that he could build a grannyflat on then onsold the properties with absolutely no problem what so ever. The rules and sizes are different from one suburb to the next, but most places in the Auckland area it is 65 sq mtrs living area. Land cover comes in to it normal height restrictions apply you can connect services to the existing house, ex one power meter and one water meter for both houses. Or if it is rural connect to the existing septic tank and save yourself a fortune. It is for the switched on investor. By the time the herd wake up they will have rules to stop it. The one thing my investor got out of it all is he now is a master builder because he successfully did all those homes problem free. If you want to worry about something worry about that. macdunk

  3. #43
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    Macdunk. My advice is correct, I'm involved directly, although haven't done a minor unit in Rodney. Yes I know you can put garages verandahs on etc.

    The rules USED to be quite slack but are/have changed re minor household units (MHU) as councils are using the RMA to control infill housing. Especially Manukau, as mentioned, where the size for a MHU is only 60 sq mtrs and you now have to apply for a subdivision consent, even though you are not subdividing as such. It's getting harder all the time. ARC have also got envolved on rural lots re septic tanks which even effects a straight bedroom addition. Have to get the current system assessed now.

    Point taken on the MB bit. Just like mechanics, there are some good ones and bad ones. Personally I prefer Certified Builders, which you can't join just because you built a house or two, but the Building Practitioner regime will change everything beginning 2007.




  4. #44
    ronaldo
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    Quoted rental returns are misleading.Its always the gross return.Nett should be quoted as expenses are considerable,rates insurance,maintenance.vac while awaiting tennants or repairing.Return on property investment is only worthwhile because of Capital gain.Thats what its all about.Forget about the rental return-better to have money in bank.Capital gain is what makes it worthwhile

  5. #45
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    RONALDO, You are pretty near to what it is all about. Capital gain is the profit. rent is living expences. Juggle the two with someones elses money work out the numbers and do it. macdunk

  6. #46
    Property Management rentex's Avatar
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    Just found this old thread, how are you all going with your investments now?
    There have been large fluctuations in mortgage rates, plus increases and decreases in capital values in the past 11 years. Council rules keep changing too.
    Properties that support multiple tenancies continue to provide acceptable yields.

  7. #47
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    Quote Originally Posted by rentex View Post
    Just found this old thread, how are you all going with your investments now?
    There have been large fluctuations in mortgage rates, plus increases and decreases in capital values in the past 11 years. Council rules keep changing too.
    Properties that support multiple tenancies continue to provide acceptable yields.
    I'm happy enough with my set up.

  8. #48
    Property Management rentex's Avatar
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    Quote Originally Posted by fungus pudding View Post
    I'm happy enough with my set up.
    That's great, thanks for the quick response.

    The properties that we have been managing since this thread was started are doing well.
    Many have had carpet, plenty of curtains, lots of appliances and a few have had majors like bathrooms or roofs but overall solid.
    Rents now are $150-300 up on 10 years ago depending on property, location, condition, etc, and this is not including any MHU additions. Don't have a bunch of property valuations handy but could get an overview by looking at median sales price stats on landlords.co.nz

  9. #49
    FEAR n GREED JBmurc's Avatar
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    sold my investment/spec properties long time ago that I held ....looking to buy again ....but will be in the deep south not interested in buyer for neg gearing in the big smoke etc... looking at 4-5% return after AISC(interest,rates etc)
    Last edited by JBmurc; 22-05-2016 at 11:13 PM.
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  10. #50
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    Bought a 14 unit property in February x motel complex now being used for long term rentals going extra well seems to be hitting 15% on purchase price
    less costs so very pleased with this.

  11. #51
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by Kees View Post
    Bought a 14 unit property in February x motel complex now being used for long term rentals going extra well seems to be hitting 15% on purchase price
    less costs so very pleased with this.
    Sounds good ....been looking to buy something along the same lines ...

    Many look good from the outset but once you take out all the costs out (and the fact it's going to have a higher up-keep costs etc) the 15-20% gross yield ends up much the same as some 9-12% yields etc

    Commercial property certainly has many more issues around insurance NBS min rules etc ..
    Last edited by JBmurc; 23-05-2016 at 12:03 PM.
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  12. #52
    Member Kees's Avatar
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    Quote Originally Posted by JBmurc View Post
    Sounds good ....been looking to buy something along the same lines ...

    Many look good from the outset but once you take out all the costs out (and the fact it's going to have a higher up-keep costs etc) the 15-20% gross yield ends up much the same as some 9-12% yields etc

    Commercial property certainly has many more issues around insurance NBS min rules etc ..
    Quite happy with 9-12% property was well looked after although we are slowly doing them up and lucky to have good management on site
    so hopefully no worries although with tenants specially residential there are always surprises.
    Insurance was ridicules specially earthquake cover is a wrought if I was a bit more adventurous I would not cover for that seeing the place is build like a brick sh3house (its actually block) and build by real tradesmen and material.
    the upkeep cost should be no different then stand alone units if not less because the tenants live in a close community they seem to look and take pride in their living standard but time will tell early days yet . Usually been into industrial buildings so a different kettle.

  13. #53
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    No Home or investment property... Trying hard to find one in Auckland tho with no luck

  14. #54
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    Quote Originally Posted by Kees View Post
    Quite happy with 9-12% property was well looked after although we are slowly doing them up and lucky to have good management on site
    so hopefully no worries although with tenants specially residential there are always surprises.
    Insurance was ridicules specially earthquake cover is a wrought if I was a bit more adventurous I would not cover for that seeing the place is build like a brick sh3house (its actually block) and build by real tradesmen and material.
    the upkeep cost should be no different then stand alone units if not less because the tenants live in a close community they seem to look and take pride in their living standard but time will tell early days yet . Usually been into industrial buildings so a different kettle.

    Don't assume that block will be immune to earthquake damage. Timber is the best material in a quake.

  15. #55
    FEAR n GREED JBmurc's Avatar
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    Yes looking into a industrial building with a couple of tenants in dunedin 100k under RV ... 10% yield .. tenants pay all costs ....banks talking about 1% cash back on purchase price
    People don't have ideas, ideas have people

  16. #56
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    Quote Originally Posted by JBmurc View Post
    Yes looking into a industrial building with a couple of tenants in dunedin 100k under RV ... 10% yield .. tenants pay all costs ....banks talking about 1% cash back on purchase price
    Leasehold or freehold?

  17. #57
    FEAR n GREED JBmurc's Avatar
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    leasehold ..port of otago
    Last edited by JBmurc; 25-05-2016 at 01:41 PM.
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  18. #58
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    Quote Originally Posted by JBmurc View Post
    leasehold ..port of otago
    Now Chalmers properties. Good luck.

  19. #59
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    Quote Originally Posted by fungus pudding View Post
    Don't assume that block will be immune to earthquake damage. Timber is the best material in a quake.
    Having gone through all of ChCh eartquakes I don't assume anything.

  20. #60
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by fungus pudding View Post
    Now Chalmers properties. Good luck.
    yes correct -http://chalmersproperties.co.nz/portfolio/dunedin/

    something wrong with them ?? looks like they own the vast bulk of the commercial land close to CBD/PORT
    of course they will continue to lift lease of the land reviewed every 7 yrs
    Last edited by JBmurc; 25-05-2016 at 02:29 PM.
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