Apartments

[duncan macgregor]

SHREWDCRUDE, Its not what we think that matters stick to the golden rules.
1,Only invest in what you understand.
2,Never ask for advice.
3,Keep your investments where you can keep close watch.
4, Learn to speak their language or you are sitting duck material.
Other than that it sounds great.macdunk

[Crypto Crude]

quote:duncan macgregor
SHREWDCRUDE, Its not what we think that matters stick to the golden rules.
1,Only invest in what you understand.
2,Never ask for advice.
3,Keep your investments where you can keep close watch.
4, Learn to speak their language or you are sitting duck material.
Other than that it sounds great.macdunk

hey mackdadunk,
1. I understand that 34k max is cheap and no loan will be required let alone a 30yr one here in NZ
the apartment is in this area where air quality is far better than in the city... Theres like a whole shopping district being setup, and within a few yrs the whole area will be built up...

on the other Hand, then One child family means that population will be falling in the Future dramatically... so excess apartments... still wondering if this could be offset by higher wealth,(so prices rising) through large GDP growth expected to continue...

as for renting it out, Id be likely to get 220 Yuan per week or just over 40bucks
don't have to pay deposit until October...

2. I don't stand by this suggestion at all... thats just rubbish... im just a kid growing up and if I didnt ask for advice then I wouldnt be where I am today... maybe a wiser head like yourself doesn't need suggestions... But if thats the case then why do you post at Sharetrader mackdadunk?... personally Im here to give a few tips as well as feed off other posters... surely you have invested off someone elses recommendations!... I have!


3. Yes I would be living there if I got it...also friend would have the apartment next door, so between the two its in safe hands...

4. found a chinese girl to teach me the goods...also great friend who I trust dearly is fluent translator...

sound advice bar #2...
[8D]
.^sc

[coge]

Shrewdie, you can't go wrong for 34K. At the very least look at it as an educational opportunity. Go for it.

[duncan macgregor]

quote:Originally posted by coge

Shrewdie, you can't go wrong for 34K. At the very least look at it as an educational opportunity. Go for it.

Dont give my mate the wrong advice when all he needs is a kick up the backside to make him see sense. He goes over to china gets his leg over, and she is all out to get him nesting. KEEP RUNNING MATE STUFF THE APARTMENT[:0][:0]. They are all the same mate regardless of which way their eyes are pointed, You will be drying nappies out the bloody window if you dont come right. Macdunk

[Crypto Crude]

quote:duncan macgregor-Dont give my mate the wrong advice when all he needs is a kick up the backside to make him see sense. He goes over to china gets his leg over, and she is all out to get him nesting. KEEP RUNNING MATE STUFF THE APARTMENT. They are all the same mate regardless of which way their eyes are pointed, You will be drying nappies out the bloody window if you dont come right. Macdunk

Mackdadunk...
she has nothing to do with it... all I said was that I have a girl to teach me Chinese so I wouldnt be a sitting duck as you say with the language barriers....
and infact I never met the chick in China, she is from my home city..
CHCH...
The girl doesnt even know about the apartment...
nor shall I tell her or anyone else wanting to latch on SC...

mackdadunk, the only nappies I'll be drying are yours after NZOOD get exercised in the money[]

.^sc

[Brut]

Hey Shrewd Crude, you only live once so go for it!

My suggestion would be to go and live there for 6mths before buying the Apartment. I'm sure after 6mths you'll know whether China is the place for you...

There will still be Apartments for sale like the one you mentioned & you won't be tied to anything. If I was your age again, I think I'd travel the world before getting married & having kids (& changing nappies as Macdunk would say)

[duncan macgregor]

quote:Originally posted by Shrewd Crude

quote:duncan macgregor-Dont give my mate the wrong advice when all he needs is a kick up the backside to make him see sense. He goes over to china gets his leg over, and she is all out to get him nesting. KEEP RUNNING MATE STUFF THE APARTMENT. They are all the same mate regardless of which way their eyes are pointed, You will be drying nappies out the bloody window if you dont come right. Macdunk

Mackdadunk...
she has nothing to do with it... all I said was that I have a girl to teach me Chinese so I wouldnt be a sitting duck as you say with the language barriers....
and infact I never met the chick in China, she is from my home city..
CHCH...
The girl doesnt even know about the apartment...
nor shall I tell her or anyone else wanting to latch on SC...

mackdadunk, the only nappies I'll be drying are yours after NZOOD get exercised in the money[]

.^sc

Thank goodness for that shrewd one, I was a worried boy for a moment or two.[^]macdunk

[wns]

quote:Originally posted by Shrewd Crude

Ive just been over to China....
and While I was there I got a chance to have alook at a few apartments, traditional housing as we are used to is non existant (in citys), and with land ownership rights controlled by Govt, makes apartments the only real way to go ahead in the industry...
...
looking at a brand spanking new apartment Block in Harbin, 30mintues drive from central city, all Infrastructure, and motorways in place...... 70meters squared...
seems quite small, but was fairly spacious for how the Chinese live (IMO)....
190k Yuan... or 34K NZ...
could negotiate slightly better deal...
Great mate wants one and suggesting to me....
any thoughts?
[8D]
.^sc

Hi SC,

What's your reason for buying the apartment (if you do in fact buy it)? To rent it out an earn a cash flow from it? Or to make a capital gain? Or both?

220 per week on a 190,000 rental price is a 6% gross yield. You could earn that by putting your money in a bank term deposit (with less hassle).

Then you've got expenses...

- Property management fee?
- Body corporate?
- Insurance?
- What's the likely vacancy rate?

How much is left over after those expenses are subtracted from the rent you receive and what return does it represent on your investment?

I suspect it will be less than 4%. Is that acceptable for you?

From that point of view, even though its "only" $NZ 34k, it doesn't seem like a screaming buy to me.

What yields are investors are purchasing at?

What are the factors that will affect the future possible price of the apartment? Will they have a positive or negative affect on the future value?

Those are the questions I'd be asking.

I have no idea what the future price of the apartment will be but from a yield point of view, I wouldn't buy it.

Hope this helps.

[Crypto Crude]

good questions WNS...
I can't answer all of those Q's...
I never went there to buy an apartment... and I had bugger all time to look into it further, as I was there on other dutys...

I'd be looking at living in it to start off with, and then sell the thing when I left after a few years..... I have met a few contacts and would be well looked after with a real decent job....... wages probably on par with NZ when taking into a/c exchange rate, but far higher than what the rest of their Pop earns...
same wages but can save a hell of alot more as its so so cheap to get by there...

I don't have my heart set on it... but im thinking about it, thats all... I'm likely to re-visit next year...

management fees-with my friends family living next door there would be no property managment fees...
4% would not be acceptable for me, It would be all about future expected capital gains...
rubbish apartment in the city much smaller 50M^2 200k Yuan...

the Chinese are only getting richer over time...

the apartment block is being sold off in two stages and the first stage is almost sold out...

quote:What are the factors that will affect the future possible price of the apartment? Will they have a positive or negative affect on the future value?

as I mentioned in one of my earlier posts there are numerous positive and negative future effects that could swing this one...
including the Beijing Olympics...
moving away from a fixed exchange rate into floating would be good as currency is held undervalued by Govt...
There is a growing number of Chinese who are now becoming alot more wealthier and is set to continue...
increased foreign workers coming into country...
and my unexperienced mate reckons this area will be real built up over time...
major highway around the corner...
hospital around the corner...

negatives- falling population due to 1 child policy...

cheers for your feedback...

[cookiemannz]

What are peoples thoughts on the Metropolis nowadays? What seems to be the market rate of a 1 bedroom apartment in metropolis? If I was to buy there I would live in there myself.

Does anyone see an increase in demand for the apartment market? Would a successful Americas cup challenge or the rugby world cup 2011 make a difference?

Last question, has anyone dealt with Apartments in Auckland? What are they like? How much do they charge in commission if I was to rent the place out for a while?

Appreciate any comments on this