NZ 1st homebuyers are ScReWeD...

[Aaron]

"Bernard Hickey peels through the layers of the Reserve Bank's hopes that this time the 'one-way bet' for housing is about to turn"
https://www.interest.co.nz/property/...ay+4+July+2022

I like Bernard Hickey, probably because I mostly agree with him. Sad that Labour said the RBNZs job re housing was "sustainability" and not "affordability". The RBNZ was sustaining high house prices before the wording change, it just highlighted what a bunch of two faced liars Labour are when they talk about being concerned about poverty and inequality. National are no different so it will be interesting to see if there is an alternative to both of them by the next election.

[snigmac]

So you can still buy a house in NZ and in snigmac's case one every year. Good to hear.

I obviously sit and moan too much.

That is a pretty quick accumulation of properties. Out of interest and being nosey what sort of gross and net yields did you purchase the rentals on?

I purchased my first property with over 7.76% gross yield in 2019. The 2nd and 3rd properties had around 7% gross yield but dropped to around 4.74% after I realized I couldn't rent one proportion of the property out. Property 3.5 has a 4.7% ish gross yield. Properties 2,3 and 3.5 are all around 600m2 and can be developed on. Property 3.5 is in a 4/6 storey high density zone. Properties 2 and 3 have resource consents to develop into 3 new stand alone houses but i'm holding off as it is a a high density zone and residential heritage zone (i'm waiting until August to see if rules change). All yield calculations are based off purchase price.

Christchurch is a great market to look into

[Aaron]

I purchased my first property with over 7.76% gross yield in 2019. The 2nd and 3rd properties had around 7% gross yield but dropped to around 4.74% after I realized I couldn't rent one proportion of the property out. Property 3.5 has a 4.7% ish gross yield. Properties 2,3 and 3.5 are all around 600m2 and can be developed on. Property 3.5 is in a 4/6 storey high density zone. Properties 2 and 3 have resource consents to develop into 3 new stand alone houses but i'm holding off as it is a a high density zone and residential heritage zone (i'm waiting until August to see if rules change). All yield calculations are based off purchase price.

Christchurch is a great market to look into

Thanks for that.

For a first home buyer you must have had a bit of savings or finance behind you or was it funded through equity increases in a rising Christchurch market. Sounds like you have done a fair bit of research as well, well done.

[snigmac]

Even if you go onto Trademe now, u can pick up a 3-7 bedroom house (oldish) in Linwood, Christchurch from 550k which is in my opinion a up and coming area (it could be the next Ponsonby of Chrsitchurch in 15 years time. The property is also likely to have 500m2 of land approximately.

I save alot... most of the funds have come from intense saving and equity gains. I did get some guarantee type help from family (but without any funds contributed).

[JBmurc]

Great to here your doing well .. risks are worth taking .. I use to do some residential property investing.. not really interested these days .. I like really high net returns gross can sound good but once you take off all the costs and maintenance $$ hoping for Capital gain in little old bubble NZ with one of the highest property values to income in the world .. I just don’t believe we will see the growth in value like we did over the last 30yrs

[Crypto Crude]

Great to here your doing well .. risks are worth taking .. I use to do some residential property investing.. not really interested these days .. I like really high net returns gross can sound good but once you take off all the costs and maintenance $$ hoping for Capital gain in little old bubble NZ with one of the highest property values to income in the world .. I just don’t believe we will see the growth in value like we did over the last 30yrs

LOL jbmurc likes really high net returns LOL....

He likes high return but he doesn't invest in high return...

[snigmac]

Property is a very long term investment. It's just not as liquid as shares, especially with bright line and development tax rules. However, if u structure things right, u can get 150/200k of passive annual income and can retire early (/this is the plan).

[JBmurc]

Property is a very long term investment. It's just not as liquid as shares, especially with bright line and development tax rules. However, if u structure things right, u can get 150/200k of passive annual income and can retire early (/this is the plan).

Yes I hope it does for you I've known of a few guys that have done very well in Res Property and live of the now sizeable net income after AISC.... but of course they were buying back when you could get 8-10%+ yields ... on low rents to NZ incomes ..(unlike today where many renters are tapped out just paying the sky-high rents)

.. the only RES home rental I ever held I was getting $300pw from renting out the rooms ...paid $143k ..that wasn't too bad ..but was an old 1940's brick roughcast Invercargill home... that soaked up 20k pretty quick on some minor refurb in the first year..I was happy to walk with 50k profit for the year hold .. I really couldn't be assed dealing with tenants anymore ..

Did buy couple HUGE wooden blocks of 8x RES flats when I was young n dumb ...14% return ... but I could see the massive refurb costs coming down the road in the not too distant future so SOLD ASAP>>>

I like commercial ... got one 10.5% net yield .. really nice cashflows, great long term tenant ... like being able to send the rates/insurance bills to the tenant to pay ..as they aren't getting cheaper..

---Yes Crude ... I like high returns ..is How from 18yrs focused on trading/investing I've been able to grow wealth from pretty much nothing to being able to hand my notice in to become a full time trader / investor earlier this year..... no more Boss, no more Home Mortgage ... only just turned 44

Anyone can do it .. I don't have any Qualifications(I think I only passed metal tech from high school) no special teaching ..no handouts ... good timing for sure ..HEAPS of research ..school of hard knocks

If someone can do that with RES NZ Property Brilliant ... or Crypto (and keep it !!) I'll be the first to shout you a drink in congratulations of your success to be your own BOSS>>>

[Bjauck]

As a first home buyer, I couldn't afford a place in Auckland... so instead I bought my first property in Christchurch. Fast forward 3 years, i have around 4 properties here. Christchurch is still a great market for first home buyers.

Do you still live in Auckland but invest in ChCh properties? Or, did you have to move down to ChCh? You are no longer a first time buyer, so your last three purchases in your portfolio were as an investor.

First home buyers (as per the title of the thread) and buyers of their first investment residential property investment probably have different requirements and ability to pick the cheapest town in which to make their purchase. There are differences in buying a home in which to live and/or to raise a family and buying a house as an investment.

[kiora]

"To be fair, it isn't clear where all these changes are about to settle. But the very recent trend is sharply lower from two weeks ago"
https://www.interest.co.nz/personal-...ay+6+July+2022