Investment properties

[Motu]

It seems everyone I speak to in Auckland has an investment property,bought on the back of inflated house prices (An ex State 3 bdm in Mt Roskill is not worth half a million,but it's what they pay) builders are building at an ever increasing rate - the rental market is now flooded,I have a guy in today who says he can't rent out his flat....the tenant is now starting to contol rent prices,not the landlord, with interest rates going up Aucklands property market will soon start crumbling around the edges as marginal rentals are dropped.If I was going into an investment property (dream on) I'd look for somewhere the prices haven't been inflated over real value (that Mt Roskill house was $220,000 3yrs ago,it's real worth is $275,000 max),or wait as others say and catch them falling out of the sky.Good luck,don't listen to me,I've done it totaly wrong,but that's not new teritory.

[jrandom]

the rental market is now flooded,I have a guy in today who says he can't rent out his flat....the tenant is now starting to contol rent prices,not the landlord

About damn time too. Rental prices have been going absolutely mental over the last year or two. Four hundred dollars a week for a smallish three-bedroom house in a non-central suburb? Please.

[Blackbird]

Very wise words from Firefight about brokers! If you’re investing in shares and the like, some brokers have vested interests and it’s darned hard to figure what brokers are genuinely independent. I had an interesting experience a while back talking to the financial advisor to several of NZ’s biggest company superannuation schemes. He said that as far as he was concerned, there were only 2 or 3 brokers that he would trust with his money because of their genuine market knowledge. These people seem to work by word of mouth and don’t advertise. I went to one of them and have never regretted it. The person concerned went to a lot of time and effort to put together a portfolio that was designed specifically for our needs, not some off-the-shelf solution.

Geoff

[Zapf]

re brokers / share traders / advicers. My last job was working in a company that involves most of NZ's banks and share brokers as our clients, therefore had a lot of face to face time with them. You must keep in mind that they are not super-humans, and sometimes their guess is as good a yours. The key to not loosing in the markets is money management not share management, know when to get out. As long as u are winning over 50% then you are winning.

[mangell6]

The first book covers the principles, the second gives you the seven areas to look at when buying a property and the third is a real meaty book with detail.

"Rich Dad's ADVISORS" - Real Estate Riches - Dolf de Roos ISBN 0-9711652-0-3
Timing the Real Estate Market - Craig Hall ISBN 0-07-142195-5
Building Wealth Through Investment Property - Jan Somers and Dolf de Roos ISBN 0-473-03473-5

Tenants - Weed them out by getting them to complete an application form that includes a credit reference. Also invest in your people skills the majority of people do not think like you.