You have heard the ad’s, but wait theres more….

With this “what ever it is you get a free set of ginsu knives”…well not this time. If you want the ginsu knives you can go and buy some with the great upside you will get from this investment.

In my opinion deals like this one are where people will create their wealth for retirement, forget the hype of the developers and the spruiking of the real estate agents. Think about what’s in this for you.

With this particular property you are in the heart of NZ’s largest city. It is a 2 bedroom apartment which is sought after in Auckland and is large enough that the banks will lend on it.

Renting easily for $400 to $420 per week this property provides options for many a person looking to rent in the city.

That’s the rental side but you as the owner also have the benefits of the growing city of Auckland.

What happens to prices when there is scarcity? They go up.

Is there scarcity in the Auckland apartment market? Not today but in a couple of years time there will be and this type of investment allows you to hold on to it until the prices move upwards.

The new building laws for Auckland will mean an apartment of this size will cost a developer over $300,000 to build. Add on his margins and you will be looking at over $350,000 to purchase it brand new.

Today you can get that for $250,000, right here right now.

Login and look at the numbers. It’s cashflow positive from day one even using the low end of the rent side for someone on $60,000 a year income.

The return on investment is a whopping 127% even if the property only increases by 2% above inflation over 15 years.

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admin Uncategorized apartment, Auckland, buy, investment, prices, Property, retirement, wealth

Interesting news in this article. Don’t miss out, this market was the first to flounder but it is also the first to recover.

4:00AM Sunday May 24, 2009
By Jane Phare
Older investors are helping fuel a resurgence in the inner-city Auckland apartment market.

The sector is bouncing back after two years suffering from leaky building fears, over-supply and banks refusing to lend the same percentages on “shoebox” apartments as other properties.

Last year’s Auckland City Council valuations showed inner-city values had dropped by 3 per cent, compared with an average increase of 12 per cent.

But property experts said activity in the market had risen by as much as 50 per cent in recent months.

They attribute the improvement to lower interest rates, first-time buyers choosing apartments instead of expensive houses and the lure of better returns than the 3 or 4 per cent offered by banks.

That’s brought new investors into the market, including older people. Bayleys is targeting “mature professionals” and family investors looking for a competitive return as it markets suites on the top floor of the five-star Westin Hotel at Lighter Quay in the Viaduct.

They range in size from 32sq m to 75sq m with a fixed return of 6 to 8 per cent. Among the 24 rooms is a suite where David Beckham and Sir Elton John stayed during their last visits to New Zealand.

The surge in interest has made life harder for bargain hunters such as long-time property investor Terry Rota, who specialises in buying city apartments to add to his portfolio or resell on Trade Me.

Rota said investors were “rampant” at the lower end of the market. Six months ago he could buy a 40-50sq m apartment – the smallest most banks will lend on – for $140,000. Now that sum would only buy a 32sq m property.

Signs the bargains were drying up emerged late last year. In November Rota offered $100,000 for a one-bedroom inner-city apartment with a $140,000 reserve, but the property was turned in.

After interest rates dropped in December, the same apartment was re-auctioned and sold for $167,000.

Martin Dunn, of City Sales, spotted an opening when he realised older investors were starting to buy apartments.

Realising they feared their property would be trashed by tenants, and not wanting to be lumbered with the day-to-day management, his company last week launched a new venture.

It is offering 23,000 apartment owners $10,000 free insurance coverage for malicious damage if City Sales managed the apartment as part of an “aggressive” expansion of its rental and property management department.

Graham Smith, manager of Barfoot & Thompson’s city residential office, said activity in the apartment market had increased 50 per cent in recent months.

Small apartments were achieving prices “acceptable to the vendors” rather than being passed in.

Rachel Dovey, Bayley’s residential manager for the city apartment market, said lower interest rates meant properties in the “sub-$300,000″ bracket were being “snaffled up” by investors because of the good return.

But property investor Andrew King warned new investors to be “wary”.

“It is a business and it is risky.” King, vice-president of the New Zealand Property Investors’ Federation, criticised get-rich-quick property seminars that pushed people into buying property without educating them properly.

He said there were plenty of good books on property investment and free advice available from property investment associations.

admin Uncategorized apartment, Auckland, properties, property experts