All Forum Posts by: Kyle Elmer

Hi @Chris McKinnel , welcome to the group.

I have not had much to do with the Wellington market other than having a bit of a look around whilst we were there for the NZPIF conference a few years back. You have the choice of two property investor associations in the Wellington area, Wellington and Capital, http://wellington.nzpif.org.nz/ or https://capitalpia.org.nz/

I know Richard and Jackie at Wellington quite well and they could be good to reach out to and get along to a meeting. The PIA's around the country try to put on events to help learn how best to invest in property and to keep current on the latest changes in the industry. You also get access to discount schemes and the like.

You might also want to reach out to mortgage brokers or other financial partners to look at pre approvals or guidance on your financing range so you can restrict your searches to realistic purchasing options, that way the search starts to become less daunting? Kris Pederson mortgages based up in Auckland seems to be doing a lot of investor specialisation recently otherwise we have Roger Swift at EnableMe down here in Dunedin who goes a bit further than just the finance and looks at your whole financial plan to help you.

From the deposit point of view, I don't know if there is much new build in Wellington at the moment but it may be an option if the finance works to look at that as new builds can be down to 20% deposit under the current rules. You could also ask if your KiwiSaver can be used at all as well if you're going to be living in some of the property yourself.

Hope that helps with some questions to ask your qualified experts but feel free to reach out if you need any more help/thoughts?

Cheers, Kyle

Hi @Nathaniel Beetham

Things are nice and steady in Dunedin at the moment. The sales stats just came out showing another small increase. I was at a building industry breakfast on Friday and most of the guys there were suggesting they are flat out and our management business trying to pin guys down to quoting repair work etc has been really tough of late so that seems to back that up.

The University roll is up again this year which has been the first year for a few so fingers crossed that's a good sign for the city as there has been a little bit of an oversupply of rentals in a few markets the last few years so that might suck up that excess supply. I also saw in the NZ Property mag recently that the building consent to immigration to area numbers for Dunners were showing a slight shortfall in building to numbers coming in so that would also back up those sales numbers rising. There are also signs that the new 2GP (new district plan) is about to be finalised after too many years and there is a bit of medium density stuff potentially in there subject to the consent rules so redevelopments might be on the cards?

The city does finally seem to be seeing some good traction from the Gigatown win and some project funding like the Heritage precinct that are seeing some really good Hitec start ups coming in to or staying in town from Uni so if that continues then some alternative jobs are coming in too.

As for rentals, this is still the oldest housing stock in the country so it is prime for buying under value doing improvements to it and increasing your values and to a lesser extent rents. The only issues with that plan are as above, the prices are rising so buying undervalue is tough, the builders are flat out so the price for work may not be as sharp as it could be or the delays could be an issue. You will find that the rents don't lift as much as you think for a well-renovated property compared to an average one but you will probably find that the good ones won't sit around compared to some of the ropier ones that might sit empty quite a while.

If anyone wants any specific help to flick me a PM or email and we can have a catch-up and I can see if there is any specific help I can give or send you too.

And talk to APIA about joining. For a couple hundred bucks the amount of knowledge and training you'll get access to and the number of people whose brain you can pick will be huge. Shame your not down south here, you could come and join OPIA at nearly half the price ;-) 

Or I have a job we just posted for a Jnr Property Manager which would have been a big education in the property business.

Ok, so that's a negative cash flow without the depreciation then. Depreciation is an icing on a cake type thing and certainly, wouldnt be worth banking on having. The tax rules can be changed really quickly so to me that is negative cash flow. It also relates to your tax situation which is different to anyone else so who knows if that's going to be the situation for you, your financing package, etc etc.

Good for the education factor but definitely walk out and talk to your team of experts to confirm those details are right for you

Kyle

This the one you mean http://turnkey-reviews.com/a-perfect-storm/ @Vivek Khoche ? 

Will have a look, thanks. We also have some here already doing some US investing, @Dean Letfus @Hadar Orkibi could be a help if your looking at either NZ or US property as both have been actually doing it in both markets and have also spoken at Property Investor associations in NZ in the past. Also @Nick Gentle can help with NZ specific investing as he works in property finding here.

Hope those connections might help to build your knowledge base

Hi @Jade Atkinson

What are your plans for investing? Do you want to be a passive or active investor? Why are you doing it? What outcomes do you need in your life from investing?

Once you have answers for these you can start to niche down to areas that will interest and support your plans and then you can start to decide if NZ or US or anywhere else is best for you. For example, you mentioned in your other post that you used to be keen on travel, so do you want to continue with that as that could decide some of your buying decisions as you may be able to incorporate travel into your property business?

Do you want to do properties up or buy them turn key? Hold them for long term income or do you want to build another business may be flipping, selling or trading?

Once you have a bit more definition to your needs we can hopefully point you to people here that have more speciality knowledge in those areas.

Cheers, Kyle

Hi @Jade Atkinson

Welcome to BP. Yes, this is swung toward the states but there is a good core of Kiwis here. The feel is of a lot less tall poppy cutting over here than the NZ forums so it's great for asking questions whatever level you're at. I see you have just found the NZ based post, https://www.biggerpockets.com/forums/86/topics/308601-calling-all-new-zealand-based-investors?highlight_post=2923187&page=4  you should get some good contacts over there.

If you're in the learning mode then go back through the BP podcasts, it's great to work out what type of investing you want to do. Locally you should try and join APIA (Auckland Property Investors Association https://www.apia.org.nz/ ) its great for networking and education events and as its part of the national Property investors Federation you get discount schemes etc as well. Also, the National Conference is coming up in October if you wanted to mix wit ha lot of Kiwi investors and see some good speakers www.propertyconference.org.nz/ ?

You can also keep up to date through the NZ Property magazine https://nz.zinio.com/www/browse/issue.jsp?skuId=41...

See you in the Kiwi group and sing out if you need any help?

Kyle

Hi Abby

Welcome to the group. A friend of mine @Hadar Orkibi has done some work in Christchurch in the past and could have some more local specific info for you. As for finance Kris Pederson Mortgages seems to be doing a lot with investors lately and you also have Squirel mortgages who were investor friendly too.

Another good contact there would be Lewis Donaldson, he is an agent there and used to be in the board of the NZPIF with my wife and is an investor himself.

If you have specific questions feel free to give me a PM, were a bit in the game down here but haven't really done the onsell part of flipping as we have more BRRRR'd our deals.

Good luck. Cheers, Kyle

Hi @James Capovilla  

Welcome to the group. If your looking to get plenty of good value info it is probably best to join a property investor Association (PIA). Being in Wellington you have 2 local ones to choose from http://wellington.nzpif.org.nz/ and http://capitalpia.org.nz/ . 

As for regions you can keep an eye on the QV data, I think you can sign up to get a newsletter that gives you the latest data (I get it as part of work but assume anyone can sign up for it). If you're a member of a PIA then you also have the chance at discounts like access to CoreLogic data etc.

@Kevin Estey , I haven't used them myself but I always hear Matthew Gilligan's (at GRA) name come up when property tax and accounting come up in NZ so he may have a speciallist on the off shore tax questions. The other one who has spoken at the National conference a lot is Mark Withers at Withers Tsang & Co. 

Would you still come under the same issue if you didnt own the assets, ie if they were held in trust etc or is it if you are entitled to the benefit then you must pay the tax? Sort of questions you need to ask those tax sepciallists as that can get there creative juices going and there may be answer that hasn't been thought of that way?

hi @James Capovilla

If you are looking at cashflow and recycle deposit you are going to have to find stuff with a twist at the moment, like renovation or maybe new build (due to the lower deposit rules for new build)

The only problem at the moment is being nearer the top rather than the bottom of a market cycle at the moment not much will be available for that much under the ARV.

As for sourcing agents(buyers agents), we work with a couple down here and who are nationwide, Mark Honeybone at Property Ventures and @nick gentle at iFindproperty.

K