All Forum Posts by: Ryan Spearman

Originally posted by @Marcus Rodger:

New investor from Christchurch. I have recently inherited a 50% share in an as-is-where-is property in Christchurch that we are looking to repair (my father in law is a structural engineer), sell and invest elsewhere in Canterbury.

How much work does it need? 

@Dean Letfus Thanks for the interest and the info Dean, I appreciate it. The major hurdle (other than actually paying for it) I am facing is that I wouldn’t really want to develop it for at least another 20 years, as it is literally my back yard and I have no intention of shifting the family. Really, it would just be a way of securing some great equity for later and stopping someone from throwing up a whole pile of townhouses in my back yard. I had considered buying then amalgamating it with my own, then subdividing and selling the existing house with a much smaller section as a way of financing it all. But that feels a little above my level of experience, and still, I’d be some way off breaking even

@Dean Letfus that is an awesome technique, I’d love to be able to do that. I see what you mean about finding alternative means for getting cash flow, finding anything with half way decent cash flow seems pretty difficult. There is a large property next door to my house in Auckland that has been sitting on the market for some time that I would absolutely love to buy and incorporate into my own section to create a very large parcel of land. Problem is, even if I managed to get it at a massive discount (800,000 on a 1.25 cv), it would still be more than I’d be comfortable servicing myself. Or would require a lot of very well cash flowing properties to create the pyramid.

When I click on any of my followed discussions (on the iOS app), it always takes me to the very first post of the thread. This is fine if it’s a short thread but a massive hassle if it’s long. How do I go straight to the end if all I’m looking for is the last post?

@Dean Letfus Hey Dean, I fully understand your point that NZ investing is much more about appreciation than cash flow, that is primarily how I have made any money with houses. What is the best way then of actually holding onto properties long enough for them to appreciate without goibg broke in the meantime from mortgafw payments? I would have loved to have held onto the Auckland properties I owned, but I simply couldn’t afford to. Do you need a lot of money to start with, or are you finding properties that while not cash flow positive are at least cash flow neutral?

@Dean Letfus No, I am a kiwi. Always lived in Auckland and had a couple of different rentals for the last 15 years in Auckland, but with no real strategy- more of a hobby I suppose. Sold the rental in avondale early last year when I realised I could get a council exemption to get subdivision consent and seriously increase the value of the property. Paid off both the rental and the primary residence so now am sitting on a decent amount of equity and would like to start taking investing quite a bit more seriously and buy for cash flow so I can eventually get out of my job and let the properties pay my bills

Hey @Dean Letfus do you know of people having much success with direct marketing with yellow letters or the like for buy and holds in NZ? If so, how do you come by owner names and contact details?

@Dean Letfus Also, thanks for the tip about papakura, I’ll definitely start widening my net a bit

@Dean Letfus Thanks Dean. Yes, I was trying to get my head around whether what I called a buyers agent (finder) is the same as turnkey. I’m going to meet them for coffee soon and get more info. Thanks for all your input Definitely not looking to buy anything that needs extensive renos, but not afraid of a bit of paint or wallpaper

Yes, they are registered real estate agents, essentially working as finders.

Really, the only reason I am looking at investing in the smaller towns it to try and get at least a little positive cash flow, as there really doesn't seem to be anything that comes even close in Auckland, Hamilton or Wellington. I'd love to own something there for appreciation reasons, but actually holding something would be more than I could afford.

The fee is 4.5% percent for the first 200,000. Then 2% until 800,000, then 1% after that.