Rentals, Investment, Advice. Same old but need opnions

[MrMonkey]

Right.

So have about 900K cash to fill a hole of 20K per year. Want to keep it all secure bundled up as to yield that 20K per year and grow on it.

Investment ideas.

Property? Rentals? Managed Apartments? HNZ Lease Homes?
Auckland or Queenstown Lakes?
1, 2 or 3 propertys?
Managed or Self Manage?


Term Deposits in NZ, are they really save with the RBNZ hair cut policy?
Are they that safe and lucrative in the short term?
What about offshore bank accounts & term deposits?
Can one invest cash in Australia and earn interest and transfer back to NZ and not lose too much?


Any advice and thoughts and opinions I can eat and throw at the accountants would be awesome. Good to get some ground level stuff thrown about since some of those guys in the offices dont have a clue whats going on so like to challenge them with interesting stuff.

[fungus pudding]

Right.

So have about 900K cash to fill a hole of 20K per year. Want to keep it all secure bundled up as to yield that 20K per year and grow on it.

Investment ideas.

Property? Rentals? Managed Apartments? HNZ Lease Homes?
Auckland or Queenstown Lakes?
1, 2 or 3 propertys?
Managed or Self Manage?


Term Deposits in NZ, are they really save with the RBNZ hair cut policy?
Are they that safe and lucrative in the short term?
What about offshore bank accounts & term deposits?
Can one invest cash in Australia and earn interest and transfer back to NZ and not lose too much?


Any advice and thoughts and opinions I can eat and throw at the accountants would be awesome. Good to get some ground level stuff thrown about since some of those guys in the offices dont have a clue whats going on so like to challenge them with interesting stuff.

Are you for real? Do you really only want 20k yield? Lend it to me and I'll pay you the 20k, plus a bonus 5k per annum to give you the growth.

[MrMonkey]

Of course not. Im only saying 900K has to atleast turn out 20K net pa so obviously want options that can grow on top of that bottom line which is not hard to get

[fungus pudding]

Of course not. Im only saying 900K has to atleast turn out 20K net pa so obviously want options that can grow on top of that bottom line which is not hard to get

With that sort of money I doubt if you could beat commercail or industrial property. Conservatively geared would give you 80,000 plus, and if you learn the market you're in - you'll make good capital gains. Direct ownership - self managed, and no need to restrict yourself to Auckland or Queenstown. In fact Queenstown is hopeless for C and I.

[JBmurc]

Yes commercial here in Qtown are very low yielding an the higher yield residential 6-7% is very higher risk from shorter termers damage,unpaid rent etc the best buys here are the higher end properties 700k+ many 20-30% cheaper than 5yrs ago couldn't build them for 000's k above the asking prices

[MrMonkey]

Yes commercial here in Qtown are very low yielding an the higher yield residential 6-7% is very higher risk from shorter termers damage,unpaid rent etc the best buys here are the higher end properties 700k+ many 20-30% cheaper than 5yrs ago couldn't build them for 000's k above the asking prices

Yeah that was one option going for a high end property either around the 900K mark or we could push cash higher to 1M+ and do luxury rental but were unsure how well that works out if you do it privately or self managed...

MrM, I think you're almost answering your own question ... If you're after safety and it appears you are ... The answer is to spread it around ... They call this asset alocation.

Yeah I get that but in WHAT, what would YOU do?

[JBmurc]

[QUOTE=MrMonkey;365454]Yeah that was one option going for a high end property either around the 900K mark or we could push cash higher to 1M+ and do luxury rental but were unsure how well that works out if you do it privately or self managed...

well friends rent their 650-700k lake hayes est 4brd home out on book a bach 250-300 per night usually 3-4 weeks per year
but if you do rent out for more than 30-40days not 100% the local council will take higher rates.. their house would rent longer term for 520-550pw

if I see anything I'll post it up or PM ya

have lived in most parts of Queenstown an have spec built 5 homes here an owner a few section's over the last decade

[fungus pudding]

Yeah I get that but in WHAT, what would YOU do?

Well, I'd start by reflecting on how I made the 900k. Assuming you earned it, why wouldn't you stick with something that obviously works for you?

[MrMonkey]

[QUOTE=JBmurc;365463]

Yeah that was one option going for a high end property either around the 900K mark or we could push cash higher to 1M+ and do luxury rental but were unsure how well that works out if you do it privately or self managed...

well friends rent their 650-700k lake hayes est 4brd home out on book a bach 250-300 per night usually 3-4 weeks per year
but if you do rent out for more than 30-40days not 100% the local council will take higher rates.. their house would rent longer term for 520-550pw

if I see anything I'll post it up or PM ya

have lived in most parts of Queenstown an have spec built 5 homes here an owner a few section's over the last decade

Thanks for the info. So the council will clip the ticket on longer term rentals down there!?

[JBmurc]

[QUOTE=MrMonkey;365475]

Thanks for the info. So the council will clip the ticket on longer term rentals down there!?

just on the higher short term stay rentals i.e if your running you house/unit on a per night basis

I remember when I lived up Queenstown hill a 1.5mill-2mill pad next door was set-up $800-1000per night rental use to be quite busy too