NZ 1st homebuyers are ScReWeD...

[arco]

JONES ON PROPERTY (the property game for fun and profit) 1977

I picked that up at a book sale a few years ago (for 20c).......a very good read.

This hard back book of 250 pages, " Jones on Property " ( The Property Game For Fun & Profit ) was written by Bob Jones and published by Fourth Estate Books Ltd in 1978. Good condition (watchers offered reserve)

" As a successful capitalist, outspoken political critic and radio talkback host, Bob Jones is a household name in New Zealand. He is also a practical authority on commercial property development and ownership. "

" In the early 1960s, when he started to make sizable sums of money, Bob Jones carefully analysed investment opportunities, including the sharemarket and 'various property investment alternatives.' He found his answer in commercial property. ' Everything swings for the property investors, ' he says. " And commercial property in particular stands our clearly as the best form of property investment. "

" This book is a distillation of practical advice about how to tackle the property field, and the pitfalls to avoid, based on his own hugely successful career. There are also, in his brightly written text, typically pungent swipes at the things he doesn't like. The list is a long one and includes Labour politicians, intellectuals, public servants, insurance salesmen ... "

He has another book written much later and called 'My Property World' which I borrowed from the library - again very good read.

[spook]

I agree - it's a great read. He does talk about residential rentals as being fine for beginners on the property ladder, and for a small investor like myself I would hate to be exposed to commercial real estate during hard times.

At least with residential, it's always possible to find a tenant if you bought well. The biggest risk with commercial is not being able to let your property when you've got $2000 PW going out in interest. However for a switched on investor he points out a number of ways to turn a dead duck property into gold.

[Brut]

Macdunk, I remember you saying on this thread back on 24/07/08 that you should "always get a fixed three year loan." At the time the OCR was 8.25% now it is 6.5% & still may go lower.

I hope not too many people took your advice.

Brut

[duncan macgregor]

Macdunk, I remember you saying on this thread back on 24/07/08 that you should "always get a fixed three year loan." At the time the OCR was 8.25% now it is 6.5% & still may go lower.

I hope not too many people took your advice.

Brut

BRUT, What a short term risk taker you are. When you take the risk out of it you wont go broke when it goes the wrong way. To have peace of mind in a volatile market is worth any little that you might or might not lose. Inflation and interest rates my friend are very unpredictable. I would hate to risk all on a gamble of what might happen in the next three years. macdunk

[duncan macgregor]

Underdog. If ever i get it wrong i feel sure you will be the first to show me where. Last year i was invested in a nickel mining company that boasted about selling only at market rates, with nothing being hedged. This year now that nickel is selling at half that price the company is scratching to show a profit. Interest rates along with inflation is in the lap of the gods, always keep the numbers in control. Remove as much risk in business as you can, get the basics to an understandable level in this wild west market place. If you want a good case study of risk free expansion, just study MHI against RBD about how to expand, and in the RBD case what not to do. Macdunk

[George]

We are fixed at 8.3 for 5 years and with over 3.5 yrs to go
were in two minds about the recent lowering of interest rates.
So today rang our bank about the penalty imposed - either a fixed
charge or a percentage for changing to a lower rate.
The guy went away for a while then said that there would be NO CHARGE
to fix at the lower rates.
This puzzled me as surely they would have to at least charge
for doing paperwork etc. but evidently there is still a
lot of competition and one may be able to negotiate a good deal.
So fixed originally to lock in certainty if rates went up
but with the benefit of now being able to adjust downwards FOR FREE.
Will check this out next week in case the guy was mistaken.
George.

[Sideshow Bob]

Which bank was this at? Would be interested to know the results, as we are in a similar situation.......


Cheers
SSB

[spook]

BRUT, What a short term risk taker you are. When you take the risk out of it you wont go broke when it goes the wrong way. To have peace of mind in a volatile market is worth any little that you might or might not lose. Inflation and interest rates my friend are very unpredictable. I would hate to risk all on a gamble of what might happen in the next three years. macdunk

Gotta back you up here MacDunk. If you do a fundamental analysis on the property investment at purchase time, and the figures stack up, it makes sense to lock those figures in for as long as possible.

It's all about insuring your investment. Sometimes it's better to insure against higher interest rates and risk missing profit if the rates go down.

[George]

Bob
Bank is BNZ. Rang them today and can do a 'restructure' for
no charge. However, their only lower rate is the 7.99% fixed
for 1 year so there's no point. The 5 yr is 8.89 so still ahead there.
If rates do drop as in the US etc. possibly to 5% or less, then
we will obviously change, they simply post the documents, we sign and
send them back. Perhaps there may be a silver lining on this black
cloud - as long as we can keep working of course. If things get so bad
they have to drop rates (is 1% possible?) there may be a lot of jobs lost
with people unable to pay their mortgage principal, let alone interest.
George

[George]

This out today, family charged 15 grand for ending a 5 yr fixed.
They are selling up and moving to Aus. Perhaps there's more to
this than meets the eye and one should double check that there is
indeed no charges if 'restructuring'.
http://www.stuff.co.nz/4741009a13.html