flipping houses in NZ?

Question

Dean Letfus · Answer

YEs that's true. Average buy price is 700K plus in Auckland, it is almost impossible to do contemporaneous settlements and if you buy a home cheaply, onsell quickly at a profit and the sellers complain you can actually be prosecuted. Plus we have no blighted areas and no REO or foreclosure industry. We don't even have a note industry virtually all lending is 100% controlled and owned by banks. I can show you how to make a ton of money in Memphis starting from nothing. In NZ you'd need at least a million in the bank and have a very high risk tolerance. And make less money than America!!!

Dean Letfus · Answer

It really isn't easy in NZ Aleff. I have "flipped" many houses in NZ over the years and it is very difficult now.  Our market is nothing like the USA, that is why I flip in the USA.

Hadar Orkibi · Answer

Unfortunately the regulations in NZ have tightened so Wholesaling as you know it in the US is somewhat "unethical" here...

The best way to trade properties in NZ is to buy renovate or add value in anyway and then sell.

Take in account that you will need to pay 15% GST and then income tax, this could be up to 33%.

So potentially 48% Tax to pay on any trade.

sorry but there is no quick fix... get rich quick is not available in NZ.

Unless knowing your financial situation it's hard to comment, but it's best if you have some sort of employment income while starting the PI jeurney.

Hadar Orkibi · Answer

@Aleff Pimenta What do you mean by wholesaling in NZ?

NZ is not the US and you can't safely assign contract for a fee like it is done in parts of the US.

We use to do that almost 10 years ago but now the rules changed....

The REAA will deem you as an illegal agents and could fine you up to 200k or there about...

I also recommend you read the NZ Property Investor Magazine to keep current with the market.

Auckland is the best market to be in for trading or buy and hold....

Hadar Orkibi · Answer

Hi @Aleff Pimenta, I see that you are based in Auckland, I suggest that you join the local RIA called APIA, this would be great for networking and contacts + Information.

Flipping at the top of the market is very risky, just keep that in mined... feel free to ask more specific question if you have any...

Kyle Elmer · Answer

Hi @Aleff Pimenta

I have a friend on BP @Hadar Orkibi who may be able to help in your area with that kind of thing. He also has some contact in Christchurch.

If you were looking at doing anything down south here in Dunedin or Central Otago then feel free to PM me and I can keep an eye out for you down here?

Also you might find the Kiwi investors thread on here a good place to connect with a few more people and introduce yourself.

https://www.biggerpockets.com/forums/86/topics/308...

Kyle

Aleff Pimenta · Answer

It absolutely opened my eyes @Dean Letfus, thank you for shared this!

I'm trying to figure out a way to get into the market but not as a investor yet, just to watch and see how the business works in general. Once I back to Brazil or even move to America I'll have more than theoretical knowledge to start.

Aleff Pimenta · Answer

Thank you very much @Hadar Orkibi and @Dean Letfus I really had know idea about that. Although I came to New Zealand just to develop my English and travel, I was thinking to start my business. At least now I have some "time" to invest in my knowledge.

"Get rich quickly in not available in NZ" hahaha I liked that.

Aleff Pimenta · Answer

Oh! I will do that too.

Thank you again @Hadar Orkibi I was focused in learning how the business works and I didn't realize to learn that.

Aleff Pimenta · Answer

Hi @Hadar Orkibi, thank you, I will search about the APIA.

Yeah, I know about the risk but if you dream big, risk is something you can't avoid, right!? I am thinking to start wholesaling some single family in the suburbs to gain some experience and start to build my team.

Thank you @Kyle Elmer!!!

I will start here around Auckland but I am also willing to go to the south someday as well.

Is good to know that some good people are used with NZ market.

Aleff Pimenta

flipping houses in NZ?

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