Capital Growth Areas

[Tim]

Selling house in Rotorua. Scared to be out of property market for too long. Have alternative accommodation. Looking at investing 500 -600000 in rental property for long term. Capital growth reflects areas where there is high population growth. What is the best type of property to look for? and where?
Mt Maunganui is very expensive and so are the desirable parts of Auckland.
Any thoughts appreciated.

[duncan macgregor]

TIM, lifestyle properties within driving distance to any major city, especially Auckland.
The house with enough land for a couple of ponies with pos subdivision later when the rules change. macdunk

[Tim]

Thanks macdunk for reply. Is a house on section much better proposition than good apartment say in Newmarket. ? At the mount you buy standard alone garbage for $400-50000

[duncan macgregor]

Stay out the apartment market in the short term.Their will be a big price correction opening up buying opportunities. Mortgageee sales [if you have the time and patience] will be on the increase is the way to go. macdunk

[neopole]

duncan,
the rules are changing re: subdivision of rural property.........they are trying to ban it out right.
the reason is, the rural landscape is turning in to suburbia.
in franklin, carving up prime land for townies and their ponies is all but over.
they are how ever still allowing the carve up of rubbish land.
sad to see A GRADE farming land covered in houses and ponies.......just drive around the northern parts of pukekohe to see what i mean.
where i live.....south of puke, prices for larger blocks have trebled in the last 18months......these are the last larger LSB's available.
outside of auckland things might be different, but in franklin, the rush is on to secure a block.
lsb's a king.......and for a long time to come.

[huds]

What do you classs as large size blocks?

[duncan macgregor]

Large size blocks anything between 5 and fifty acres that are uneconomic to farm and to big to mow. They normally get cut up to house, and couple of ponies size. When cities encroach they get cut up again to section size, with the cost of compliance skyrocketing. macdunk

[huds]

Thanks dunc. Regarding subdivision regulations, wouldn’t they be different with every council, district scheme plan? Out our way, they allow 2 x 2 hectare lotts for subdivision. They used to allow one extra as a retirement lott but since scrapped it.

[duncan macgregor]

HUDS, the councils, [ and i speak from experience here], all go right out their way to be as contrary, and as expensive as they can. It is straight out ignorance is bliss, its a folly to be wise attitude, that is sending most builders overseas to work. Building in NZ is controlled by ignorant stupid people, that have wrecked the industry, with their incompetence, costing millions to the unsuspecting public, who in the end are left to pay the piper. 100 years ago, before treated timber, before all the new and better products appeared on the market, and before leaky homes eventuated they built homes that are still the pride and joy of their owners. What went wrong is the fundamentals of construction are completely beyond the rule makers, who really are not qualified, with the result that they blame everybody else for their incompetence. They dont understand that an airtight thermos wall creates a vaccum with the external pressure greater than the inside preasure leading to water being sucked up hill, which leaves building a leak proof house extremely difficult. The design and building regulations from 1975 untill 2005 are a complete disaster. I fought them all those years refused to build certain type houses published great warnings was told not to be so stupid, get with it by building inspectors, watched home of the year awards go to leaky homes etc. All my warnings come true all the good builders are moving out, the industry requires a major clean up, we need proper apprentises to learn the hard way. The people that make the rules to be qualified trades people. macdunk