NZ 1st homebuyers are ScReWeD...

[clips]

well said Joe, i've had a very similar property path, yep paid 24% on the first house i bought, still own it and the three more that i leveraged into off the first. Built and live in the big house out in the country ..... all this only happened because i wanted it to happen and took the plunge

[Bel]

quote:Originally posted by JoeKing

In 1999 I bought the section (2 acres) where I now live. Paid $158k cash, borrowed $280k to build and landscape. A registered valuation 2003 valued this property at $380k.

Can you please tell us in dollars how much money buying this section has put in your pocket.

This is a forum for investors not farmers counting there chickens before they hatch.

Converting useless money into securities such as property will always be a great scheme but the points are that property is not the only vehicle for investing nor is taking out a mortgage the only method of purchasing a house.

A a great question would be how much money has you buying this section put in the banks pocket.

[duncan macgregor]

Whats wrong with you guys dont you understand the crude one is young and stupid, the same as us at his age. Jeeze was i ever the dumb one at his age, its lucky i fluked my way into the house market.
I remember i was so smart that i thought POISIDEN mining shares in Australia were over priced at $15, and watched them go up to $230-00.
The crude one thinks the share market is the way to go, up to the first slump, then perhaps hopefully he fluked buying a house before that happens. When you understand the property market and how easy it is to make money then sharemarket is only for a bit of fun.
macdunk

[Steve]

You could always find somewhere cheaper to rent to help build up your deposit? CLASSIC!

Pigs may fly before people live in this converted sty again
A pig farmer converted a sty into four residential flats that she then rented out for $150 a week to Aucklanders desperate for accommodation.

In one of the most unusual tales to come from Auckland's super-heated housing market, a building where up to 150 piglets a week were born was turned into flats that were soon snapped up by eager tenants.

But, when the local council got wind of the unusual redevelopment, it was underwhelmed and took the owner to court.

[JoeKing]

quote:Originally posted by Bel

Can you please tell us in dollars how much money buying this section has put in your pocket.
Bel sorry cannot put an exact figure, but somewhere else (maybe another thread?) I briefly outlined how I used $20,000 equity in our home and turned it into more than $1 mill in less than 3 years, and used not one penny of my own! At one stage I owned 37 houses. At a guess I would say probably 2mil+ (without selling our home) Could have been a lot more but I gave up property investing a couple of years ago.

This is a forum for investors not farmers counting there chickens before they hatch.
Ahem... this thread is entitled NZ 1st homebuyers are ScReWeD...

Converting useless money into securities such as property will always be a great scheme but the points are that property is not the only vehicle for investing nor is taking out a mortgage the only method of purchasing a house.
I don't think anyone is disputing this, tho I have never actually had any "useless money"

A a great question would be how much money has you buying this section put in the banks pocket.
Perhaps a more relevant question might be "how much money has the bank put in my pocket"? If the bank has done ok as well thats fine by me.
I have a very nice orchard, people say virtually everyday when they come to pick fruit "look the birds are murdering your plums - peaches - nectarines - grapes whatever," my reply is "as long as I get what I want, they are welcome to what is left, the same as you are"

There a literally millions of people who would dearly love to own their own home. Most don't, simply because they have been told, and believe they can't.
When I bought my first property as above I was 43 and had been adjudged bankrupt 6 months. I approached the Official Assignee and asked "is it illegal to have a mortgage" he said NO! "so long as you disclose your position to a lender, but the chances of a bank lending to you are pretty slim." True! I tried every lending institution I could find and got knocked back. Then the newly founded United Building Society opened an office in Rotorua and I found a sympathetic ear and became the first(and possibly only) undischarged bankrupt in NZ to have a mortgage. A little later I became the first (and again possibly ony) undischarged bankrupt to be registered for GST.
It is true... If you believe you can, you are right. If you believe you can't, you will also be right.
A wise word from me for all you doubters:
Unlike a marriage, a mortgage is just as easy to get out of, as into. If you decide it is not for you, you can always just sell the problem, with a chance of coming out better off.
Cheers
JK

[Crypto Crude]

Joeking what did you pay for your first property back in 1986? have any ideas what it may be worth now?
[8D]
.^sc

[JoeKing]

quote:Originally posted by Shrewd Crude

Joeking what did you pay for your first property back in 1986? have any ideas what it may be worth now?
[8D]
.^sc

Hi Shrewdy, It was/is a 2 b/r concrete block unit strata titled in a block of 5, close to city centre.
We paid $39k (GV was $43k) for first unit (lived in it 5 years) and purchased the rest over 12 years as they became available. Latest RV (rateable value) around $118k each, but as we own the total block and zoning has recently been changed to allow for hotel construction, although the units are not all that flash..I do all the maintenence and enjoy pottering with a hammer and paintbrush to keep them in good repair. (under rented but still returning 20%+) the total section is very valuable. I had thought of demolishing existing units and constructing 8 multi level nice apartments then flicking them at around $360k each,(about the going rate) but have instead decided to wait till someone else wants to do something similar and comes a knockin with a hand full of dollars, or alternatively sell them one at a time for say $125k each.
MMM not a bad return for $39k outlay, oops-(plus interest of course I'm sure someone will figure how much over 5 years). All the subsequent unit purchases and maintenece have been paid for by their own incomes/rents, and we have been able to claim all GST and tax incentives to boot.
Cheers
JK

[Crypto Crude]

JK awesome....
Using historical performance and comparing it with present/future performance is a waste of time... your return is approximately 300%
using your historical return and putting it into present time you get
Say I bought a house for 280k
280k * 3= 840k
in dollar terms your $ increased 118-39=79k
in dollar terms mine has to increase = 560k
for us to be equal
mine has to increase 700% in dollar terms more than yours....!

quote:duncan macgregor Posted - 23/01/2007 : 08:52:28 AM
Whats wrong with you guys dont you understand the crude one is young and stupid,
The crude one thinks the share market is the way to go.
then perhaps hopefully he fluked buying a house before that happens.
When you understand the property market and how easy it is to make money then sharemarket is only for a bit of fun.
macdunk

"Whats wrong with you guys dont you understand the crude one is young and stupid" ... I maybe young but certainly not stupid... I am certainly not wrong to way up all the costs rather than ONLY look at the benefits...
in present tense, there are costs.... namely a falling market amongst MaNy...
but you guys don't seem to want to talk about the costs....
the way to get around this is to talk past performance.....

"The crude one thinks the share market is the way to go"
....I don't think the share market is the way to go.... I have said (more than once) that I only have a 2-3 years left in shares... I believe the last 3-5 years performance can be put down to Baby boomers that have kept markets liquid.... they will pull out.... and I will be out of this game.... (or maybe I might go short!)

" then perhaps hopefully he fluked buying a house before that happens"
.... IF I buy a house it will be no fluke....

"When you understand the property market and how easy it is to make money then sharemarket is only for a bit of fun"
this is not a house vs sharemarket thread.... you cannot compare leverage vs non leverage... with sharemarket leverage my AED would kick house butt... not comparable buddy...

you cannot compare past to future.... as you cannot compare 79k to 560k....
[8D]
.^sc

[clips]

hey joe... how do you claim gst on residential property ?

[trackers]

This would set you up shrewd:

http://www.trademe.co.nz/Trade-Me-Pr...htm?key=298346