Apartments

[moimoi]

peterafaj..........best way to assess value is to get hold of some sale statistic's in the building.(call an agent...or a valuer)

-2 bed on the 26th floor i imagine your looking at 450k+...possibly up to 600k depending on what shape it is...ie: an 03 or an 08
-body corp is high in this building as part of it is run as a hotel.
-if you want a c/p then you'll pay another 55k for one.(and there are bugger all available)

duncan macgregor

-i would look forward to your posting when you've located an apartment that will self service at 90% finance..(thats in a reasonable building). There are not many about....
95% is available on some of these apartments...westpac will give to most folk 95% on H47 for example....westpac's property finance boys funded the developer so they need to get their dough back from the end purchasers.


cheers
moi

[Bling_Bling]

If you have bought into a property 2-3 years back, you would have at least made over 100% capital return. Who has made that much in an apartment investment apart from the developers?

[Halebop]

Four years ago a former work mate of mine bought a studio apartment at mortgagee sale for about $110k using 10% deposit. About a year ago he told me it had been valued at $150k. Also been returning cash at gross 10% on the purchase price. The return would have to be well over 100%.

Pleased with his efforts he bought another small apartment off the plan about three years ago. This cost him around $125k on a $16k deposit (12.8%). Although he calculated gross cash returns at 10% this one has been vacant quite often and he's only acheived 8% but it's still almost been self funding. Valued about a year ago at 140k. Although cashflow negative this one still managed a 100% return.

I'm not enthused with the outlook at the moment but he is taking a very long term view and his debt exposure is still quite low in absolute terms rather than ratios. He's on the prowl for a couple more.

[duncan macgregor]

MOIMOI, look about ask the questions failng all that see me. macdunk

[Bling_Bling]

The apartment market is stuffed. Wont be long before it is all over. Abit like the Gold Coast a few years back. Doggy developers and sales techniques follow with dumbass investors who think they are getting a bargain.

[duncan macgregor]

The apartment market is not stuffed as you say, but is starting to come right for the buyer. Anybody with half a brain would have got out at the top to sit on the sidelines, waiting on the opportunity to buy at the bottom. Every thing works in cycles, buy at the bottom sell at the top. Higher inflation, looming slow down in the market, bargains from forced sales. The real people in property are starting to sharpen the pencil and get the sums right, and will lay off buying until the price is right. Understanding the cycles is easy, look up the past, it is all a big merry go round, knowing when to jump on and off is the secret. Nothing rises fast forever without a correction.
macdunk

quote:Originally posted by Bling_Bling

The apartment market is stuffed. Wont be long before it is all over. Abit like the Gold Coast a few years back. Doggy developers and sales techniques follow with dumbass investors who think they are getting a bargain.

[willy the plunger]

Studios of around 30 square metres which were originally being sold for around $150,000 are now only worth about $100,000

http://www.tvnz.co.nz/view/page/411415/614362

When they get alot cheaper I will buy some and there will be some good money to be made in the medium/longer term.

WTP

[duncan macgregor]

WILLY, bide your time, wait on interest rate rises, the falling NZ dollar, and mortgagee sales. The correction must come. The sellers are selling in a dropping market. macdunk

[willy the plunger]

macdunk

Yes, that is my intention. I am now out of all my residential properties (except my personal dwelling - which is also mortgage free). I'm fully cashed up except for a couple of commercial properties.

Just trying to decide the best thing to do with all this cash if the NZ dollar is shaky. Any brilliant ideas?

Current term deposits offering 7.04% - 30 days. 7.12% - 60 days.

WTP

[duncan macgregor]

WILLY, You and i both know that the time always comes to stop swimming. start to paddle water, then take your bearings. Nothing rises forever corrections make smart people rich, and dumb people broke. macdunk