The main banks will definitely offer 3.79% and you may even be able to squeeze 3.75% out of them
You are right on the money with this video - stress test rates will be reduced, OCR reduced and maybe LVR removed - fuel to the fire for sure! Places like Palmerston North going crazy - what will it be like with interest rates of say 3.25% no LVR and adjusted stress test - could be a 20% plus house price surge!
Yeah - those savers will pull their money and buy a property - after tax deposits are already piss poor
How do you approach China Construction Bank, through Mortgage Brokers or directly? Tia
what happens when everyone pulls their money out the bank??
What about first home Byers like me who are still unable to grab a nice house as they are over priced
What do you think if they lower the testing rate, and people get into 1mil debt, and they raise interest rates 1% over a year or 2?
Gary modeling suggests Sydney median price can grow by 30% based on, lower assessment rate, lower interest rates and a few other things but sentiment is not there to support it, I feel up to 10% growth over the next 24 months.
Brisbane should be next then Perth based on jobs, infrastructure projects etc
They obviously have very short memories. GFC 🤦♀️
Please explain a bit more how this works
My humble guess is bottom/same as now since its flat, is mid next year the recovery from there. An old grey haired investor told me 🤔
Back 20 years the numbers worked in Auckland. We purchased for $315k and rented the property out for $500pw. In your opinion where would you buy an investment property where the numbers work as in not having to feed a mortgage.
Investing because you can't get rich trading your time for money. Property because it's tangible, and will always be in demand!
Leverage and equity
Solid investment that gives future financial security.
Definitely wise to reclad in weatherboard as mono lithic cladding carries so much stigma. Did that on my recladd for that reason & to reinstate value. No chance of a releak as Council required to bring whole building 100% up to code which is beyond when it was built on 2003....(due to risk of liability) but we were warned releaks do happen. Fingers crossed.
I listed it for sale 3 times over 18 months. Zero offers....post reclad re-leak stigma?. Keeping it. Massive rent increase post recladd & interior reno! 👍
Hmmn... was wondering that myself? Wonder if they know about the leaky building list...? Houses on that list got significant devaluations in some cases whilst the land values got inflated.
They are quite right actually. Once it's re-clad they sell for the same money. I have a client who does this for a living. Resale once properly clad is same as any other house in the street.
Every buyer should do their own due diligence.
To reclad or not to reclad that is the question?
Buyers know when it’s a reclad, it states it in the LIM.
However not all reclads are reclad because it was leaky, but most assume it was!
Not always the case.
Advice - always,always do your own due diligence.
Time for you to approach them directly Gary Lin and then report back 😏
6 % ... the devils number haha. What a load of bullshit.
The lady that can’t settle - option three: nominate another purchaser who can settle - forfeit half of deposit instead of whole - someone might bail her out and only half loss and no future risk from developer also. Not a great option but better than walking away.
Not to mention that $530 for a 2 bedroom, 2 bathroom apartment with 2 carparks is pretty cheap already. Especially when it looks quite upmarket. No idea on the quality of the area, but it seems like a pretty sweet deal.
I considered buying in Aus at one point, but am glad that I didn't.
But yeah, so I guess they don't need any legislation around letting fees over there at the moment lol.
Four weeks and cheap rent look a pretty sweet deal . I'm in
I believe rent free comes into effect when person has to end the tenancy and they have to give 4 weeks notice period. Then durinf that time then they dont have to pay rent which will be offset by bond money. I believe no bond will be refunded back . Its marketing
Four weeks rent free ... hard to rent out if u have to offer that
Could be part of that dodgy building thing hitting Sydney ...
It was either amend the RTA or withdraw the rules. Privacy commissioner jumped the gun too quick without realising or having no knowledge of the Residential Tenancies Act
Let’s bring in some rules
That is in contradiction of the RTA !
Happiness for me is a combination of things - too much free time is definitely a bad thing I find! However the opposite is also a bad thing, if you don't enjoy it.
Spending time with my wife does however rank pretty high on the list and it brings me a lot of happiness!
Side-note: We would like to get into the renovation side of things, to give us more purpose and have fun
Same here. We hv two jobs too.
Very good points
thank you Gary! I totally get you
“Freedom is not happiness, fulfilment is” 💯
Only 70 hrs ?
If you are struggling to create freedom through property, let's have a chat:
I am often out in the streets around Auckland and it’s a real shame when it’s so easy to identify rented properties when the homes are in such disrepair. I too have been a landlord and respect is key: would your family live in your investment property? Do you really expect tenants to give respect if it’s not earned? Look after your investment...property and people and the returns will be awesome. Just my humble opinion.
Less than a dozen excellent ones? Haha. New privacy laws should be interesting! Good luck for the business mate. Good to see your content is on form.
Use the time on the train to explore other options. Maybe starting his own business so he doesn't have to commute...negotiate working from home, forming abranch office. As well as how to invest his money so he has more choice for himself and his family
Change jobs to a local firm, there are plenty of great legal businesses in Manukau. Sometimes work and commuting can leave a person so drained there's no mental energy left for investment.
Interest rate won't stay for long that low. The financial system future Is not clear instead of Rob I will start a business and find a passion in life instead like you are saying waste the time on traffic and live 2 hours drive from work
Start using some of the equity in the home to start his own firm in pukekohe, if he really works that hard he can work for himself in years time, using the hours traveled, in the mean time, reading up on how to start a law firm and a business on his own via free resources and counseling available online.
You're a sexy man ❤️
Start law business where he lives and start investing later if he really likes investing or do something that he enjoys!
Someone's about to get TOLD
Thats painful, so much hours in commute
I would not live in pukekohe. Rent some where closer!
If Rob would like to work closer to home, ask him to drop me a message.
I would rent out the pukekohe place and buy closer to work to improve your lifestyle. Then as Jimmy Ho says you’ll have more mental energy to take on property investment fully.
Ha Ha Gary - I agree with the principle, but by procrastinating 2-3yrs Rob escaped the top of the market and saved losing 10-15% equity loss?!! But totally agree with not having long commutes, he’d be better renting in town and walking to work for free and keep house as a rental. Also Puke isn’t Alk, it’s like investing in Warkworth or the Tron.
Are you scared to take the next step in your property investment journey?
Are you scared of taking the plunge?
In the last 10 years of investing, I have come across many many investors that have: - procrastinated - scared - wondered if it was the right time to buy (at 2010) - worried that interest rates will go to 7%+ (keep waiting haha!) - worried what the best strategy is - worried about what the market will do next
Most common problem with these investors, is that they don't have a crystal clear property investment strategy.
"You don't want the world to force you to realise the situation you are in. You want to have control and the only way to have control is to have wealth"
I agree with the above statement whole-heartedly Gary, but it seems like so many people are unwilling to invest in themselves to give them the control that they need. Why do you think thats the case?
Karn Hall watch this. Good points Gary Lin although as funny as it sounds interest rates can actually go up during an economic crisis or recession due to a few reasons. Risk premiums, credit tightening, interbank lending rates spiking etc
G you make a great point, also take thousands and thousands of people with lower ROI on savings- $2,000 multiplied by many people is a lot less free cash flow in the economy. This is a double edged sword. They are doing it not because they want to- they have to do it, it’s a one trick pony and soon when they realize that they need to drop rates again they will be scratching their head on why their business unfriendly environment hasn’t helped employees- because they will be unemployed. If you try to focus on the employee rights more than the employer (who carries all the risk) at some stage the employer decides it’s not worth it and closes up. I’ve seen this happen in cycles in NZ since the 80s when NZ was bankrupt by socialist policies.
If you are in the consulting or coaching space, and wanting to grow and scale.
Working with James Kemp is your best bet to take your business to the next level!
James Kemp On today's Client Interview I speak to Property Mentor Gary Lin.
Gary has built up a $10m property portfolio and now helps others build theres.
In this interview you will learn: - Why Computer games motivated Gary into property - Why he got burnt out with a 1-to-1 coaching model - How he gets his clients better results by spending LESS time with them.
There's nuggets in here for anyone who wants to build a profitable and meaningful business with skills they already posses. ... See MoreSee Less
This is my bored face, after 60 min listening to the student, architect, and builder debating whether to turn the laundry into another bedroom or bathroom (for the South Auckland 8% development project)...🤣🤣🤣 ... See MoreSee Less
I want to share with you the 3 simple steps that we took, that helped us grow a $10 million dollar property portfolio in just 6 years.
I have put together a free 3 step case study for you, by clicking the link below:
Stuart Waterhouse!! The reason we’re looking!
I’d sell the lot and buy a MASSIVE boat 😎
Nothing but admiration for your achievements Gary mate 👊🏽
Brave to put yourself out there like this man - lotsa haters out there!
"What would your life become if you have a steady source of passive income through property, and you don't need to work for money anymore? What possibilities does that open up to your life?"
If he wants passive income why is he buying residential??
Still quoting World of Warcraft lol
Oh well done Gary
Nice strategy. Don't like house prices wait 3 years. Don't like cgt wait 3 years. Dont like the government wait 3 years. Thanks Gary you are teaching patience.
Love it 👌
Nice one Gary 👍
Well done Gary Lin , you have been consistent in your plans and views. Your foresight and meticulous planning is outstanding!
Oh well done Gary
Nice work Gary. Smart operator and your hard work has paid off. Set up the family for the future . Good on you🙏
As property investors, we all want financial freedom and time freedom, stop trading time for money, and a secure retirement.
but does freedom bring happiness?
For me, I have the freedom, but when comes to happiness, it's complicated.
Let's go back 13 years ago, I was in pain.
I was fresh out of uni for few years, paid off my student loan thanks to Auntie Helen for interest free student loans.
But I hated the 9 to 5 life style. Plus I was not passionate about the civil engineering career I stumbled into either.
What I was passionate about was computer games after work. But I soon realised that addiction turned into a second job.
Computer games were merely an escape to the depression I had, of not passionate about my career, and I didn't have any long term goals. I lacked purpose at that point in life.
The turning point was when I read the book Rich Dad Poor Dad.
Rich Dad gave me purpose. Getting out of the rat race became my passion and obsession, and this fire continues inside me today.
I quit gaming, devoted all my spare time to learning about property investing.
I thought getting out of the rat race was the ticket to eternal freedom and happiness.
Fast forward 13 years, I have financial freedom, I'm in a position to cash up some of my gains in my properties and put my feet up. I have enough passive income that I stopped worries about my mortgage payments many years ago.
I have also got time freedom, leaving my civil engineering career behind.
But at times I was not happy, not 100% of the time.
The times that I got enjoyment from YouTube, movies, hanging out with friends bought short term fun and happiness.
But deep down something was bothering me.
I started to wonder what really happiness means.
It took many trips to Tony Robbins events, talking to people wiser than I am.
I finally figured it out for myself.
Happiness, for me is, first of all, Gratitude.
I'm thankful for the things I have and the achievement I have all these years.
But I'm mostly grateful for a loving wife, two beautiful daughters, and a big loving supporting family that are in harmony together.
The second is fulfilment.
Fulfillment to me was happiness, not freedom.
I realised no matter how much free time I have, if I don't enjoy the time I spent, I feel unhappy, sad, and sometimes depressed.
Now my life and business is all about fulfilment, doing what I enjoy, do my best to help more people out of their rat race.
What makes you fulfilled? Work that out well before you get to freedom. ... See MoreSee Less
Went to an APIA presentation last night on CGT. OMG....it is nonsense!! "Transfer of Wealth" was a focus of the group. Get this..if you are in a relationship but live apart you can have separate principle place of residence for 3 years then must pick a house. So two solo parents living with their kida in sepaarte towns after 3 years have to pick a house or buy a huge house. Take kids out of schools & move town. Tax seems to be based on who you love.
I disagree with all but one.
1. Most of the poor just want shelter and a meal. Welfare doesn’t make them prosperous.
2. I agree with this one. Capital gains are all about receiving without working.
3. Security, freedom, respect and equality are all things that can be given without cost.
4. Please explain how tax divides wealth, it just lessens the increase.
5. How many nations have ended because of that fatuous statement? Throughout history, nations and civilisations have ended because of uncontrolled power and greed.
CGT is going to be a pain to implement and run but it doesn’t mean we shouldn’t do it.
Gary Lin interested in your thoughts in how CGT will effect bank lending. I asked the speaker if the debt on the property is considered when CGT is calculated. Answer waa No. Its calculated on sale price less value as at 2021. Debt isn't taken into account. So if debt is high there cld be a shortfall of funds to pay CGT. Banks will drop LVR's to account for CGT. Raises issues with cross collateralising.
Are you one of many Auckland property investors struggling to find a good deal to buy?
Or you are stuck with a low performing property portfolio?
That’s because many properties in good parts of Auckland are only returning between 2 to 3%...
7%+ return properties are now possible, with the introduction of the Auckland Unitary Plan.
These 7%+ high yielding residential developments start at around $200,000 plus purchase.
An example is this property purchased by one of my students Ross, in Mt Roskill for $1mil a year ago.
Now Ross is in the process of turning this property from one income into 5 incomes by conversion and adding dwellings.
The project cost is about $800,000, and will take 18 to 24 months, but the result is worth it.
End project total rental will be $2,500 per week.
Gross yield 7.5%!
Final market valuation of the 5 units separate title development will be around $3 to $3.2 million.
That's an increase of over $1 million or 56% in value!
If you are stuck with a low performing property portfolio, or struggling to find a good returning deal, send me a message, and see if my Property Development Blueprint programme is right for you. ... See MoreSee Less
It's a lot more than that number of properties if you factor in ongoing maintenance (kitchens, roofs and bathrooms) and income tax.
Properties in Ak double every ten years not every seven years on average I think. In centres like Christchurch it's been more like every 15 years. I personally think these increases might not be sustainable long term unless wages rise SIGNIFICANTLY. People can't afford the Ak average of $1m now so will they then be able to afford $2m in ten years?! Same with rents - have they maxed out for a while? I tend to think so. Property investing needs to be part of an overall strategy to save for retirement. Also will we even get super? I think probably not 🙁 They will start to means test at some point and those of us that have worked to save will get our super cut.
You need a whole lot less properties if your plan involves selling one off every few years and living off the equity too. After all, you’re not going to live forever!
Here are 5 mistakes that cost me $150,000 in my first home.
Before I built a $10 million dollar property portfolio, and featured on NZherald half a dozen times, I made a lot of mistakes through trial and error in the beginning.
This was back in 2009, my wife and I were novice in property.
We looked at a few properties online, kinda know the areas we wanted to buy.
1st mistake was we didn't look at enough open homes. We purchased our first home after only looking at two open homes.
2nd mistake was buying a property on the main road.
It is only after we moved in that we found out about the terrible traffic especially during morning and after peak traffic. It was very hard to turn onto the main road during peak hours.
Consequently that turned a lot of home buyers away when we sold it 6 years later. No street parking didn't help at all!
3rd mistake was the property was built on a steep section with many retaining walls. With a steep section there was no out door area or green space, except a big outdoor deck.
4th mistake was not doing a builders report, which we only later found out the big deck wasn't legal... In fact the deck was already slightly sunk on one side when we bought the property!
5th mistake was listening to the wrong advice. My mum told us it was a good first home, and we could always upgrade later... Unfortunately we didn't seek advice from the right people or get a second opinion...
Upgrade we did, 6 years later, but if we bought smarter back in 2009, we could have got $150,000 more when we sold it, and saved $150,000 in our mortgage in our upgraded home...
Make sure you do the right homework before buying any properties! ... See MoreSee Less
How come you post negative stuff on shares etc when property investors like this guy get yields of 4%...
1.3m property renting for 1100 a week... my rule when I started in the early 2000s was to roughly double the peice in rent. You'd want about 2600 a week rent on that.
There are so many Auckland investors in similar positions but most are not as extreme as this situation. This is a perfect example of how overcooked the market is and why a correction is inevitable.
My first investment was a shoe-box apartment on Queen Street Auckland in 2005 (pictured).
I was very lucky to sell this apartment 12 months later for the same price to my tenant, while the apartment market was dropping prior to the GFC. Have I held it longer when GFC hit, I would have lost a lot of money!
Here are few things to watch out for when buying an apartment:
1) make sure the apartment is at least 50m2 to get bank lending
2) avoid apartment blocks that has any structural issues such as leaks.
3) read at least 2 years of body corp minutes with a magnifying glass and go through with a fine tooth comb
4) avoid apartment blocks that are predominately investor owned. Investors will more likely fire sell in sign of trouble during recessions, and drive prices down. More owner occupier the better!
5) avoid apartment blocks where there are too many substandard tenants. Good luck attracting desirable tenants...
6) personally I would check ownership of all apartment units in the block. Avoid any blocks that have HNZ ownership.
7) make sure the body corp has allowed for a robust long term maintenance plan
8 ) make sure you calculate your rental return by net yield and not gross yield. Body corp fee can significantly reduce your net yield!
9) make sure the view the apartment unit is getting is not going to be blocked by the next new build right in front of it, which will reduce the price significantly in the future
10) talk to a few owners and tenants living in the apartment block to get a feel of the points above
11) talk to the building manager and find out as much about the apartment block and who is living there as much as possible
12) stay well clear away from leasehold apartments. Lack of capital gain and horrendous ground rent will set you back years to come!
13) make sure body corp rules and building insurance policy specifically allows AirBnb short term accommodation. You do not want your short term tenants to trigger fire alarms or burn the building down, and you are not covered by insurance!
Gary Lin The apartment building you bought in is low-end hence your issues. However if you’d kept it you’d definitely have made money on it. Your advice is subjective as it all depends on your investment goals. Eg. I know people who’ve done very well with leasehold, and I hold a few apartments under 50sm that have performed well. People shouldn’t be put off buying apartments as the market is growing due to lack of land. They’re also low maintenance, cheaper to buy and generally have higher yields than houses, and they can have the same percentage of cap gains as houses if you buy well.
Gary Lin A greedy prat who received parental money to begin his path of buying New Zealanders potential homes for his own mercenary self. You're a part of the housing problem you soulless asshole 😡
Apartment land leases?
Get your self equipped otherwise stay away from apartment 😂
Great advice....thanks Gary
Catherine Southwick good tips for you 👍
Useful tips 👏
I would say that 2years of body corporate records is not enough... Dig back as far as you can go.
Buildings with the fancy amenities like swimming pools, spas & tennis courts are nice, but these facilities aren’t free. Body corporate fees are often significantly higher in these buildings.
One bedroom apartments generally attract young professionals, two bedroom apartments generally attract flat mates. Young professionals usually mean less drama & better ROI%.
Small apartments = students, larger apartments = lower percentage ROI. You need to find a balance, as students are less likely to be long term tenants (more than 1 year), and then you have the costs of finding new tenants + a vacant apartment while searching.
This is awesome! Thank you!
Do u see an over supply of apartments in the near future?
Out of interest what is that same apartment worth today?
Well said Gary Lin
Stating the obvious: better buy one with a car park if you can! Haha
Buying apartments is a different game, a lot more research required but maybe well worth it, yield could be much higher than the average unit/house ...
look for a do up, apartment do ups can be cost effective and look at furnished rentals can work good
Look for air bnb reviews for the building / neighborhood.
Very good advice Gary Lin.
Grant Sanderson thoughts ❓❓
Buy an apartment built and developed by Conrad properties.
Reputable devloper so far.
To me when im inspecting a place I think if they skimp of this shall stuff what else have they been cheap or lack or maintenance with. After I submit my offer and in the attorney review period I send a list of repairs and maintenance needed and have the price revised. I find that emotionally the seller doesn’t want to have to start the process again and 9/10 times I get a good discount because of things like s crappy letter box and on from there. Great tip!
You must be so bored today lol
So when my property manager/agent gives me a figure I simple say you can add another $10-10000 dollars to that mate cos I’m heading to bunnings to get a stainless Letter box 😂😂
Charging $520 a year for a new letterbox is one of the reasons we need stronger tax laws and regulation against predatory landlords and investors.
I am just going to rent a room at my friends place and use it as my office.
Can you please explain claim home office and pay CGT in which way related?
It’s such a small proportional cost it should not make a difference.
That is a no brainier.
The typical self employed that claims home office expense would claim 10% or less of their total home expenses so the benefit of doing so would be gone if CGT kicked in as a result.
I’d imagine that most would use it as an office to claim expenses and then a year or two prior to selling change to not claiming expenses.
As I’m sure that there would be so many loop holes to utilize to negate large sections of the tax if it were ever implemented.
As having an exception to not include the family home, cars, boats, jewelry or artwork, it likely opens up a raft of ways to minimize tax for savvy investors/accountants.
Labour talks about encouraging more businesses and want to help small businesses.
Many kiwis including myself start their businesses from their own home, so called home office, and or our garages.
Up to potentially 48% tax rate especially for service based, low upkeep type consulting businesses.
Now government wants to tax more to small business owners as well...
Quote: “The rules get more complicated for people who work from a home office.
They would be able to claim an exemption on any gain in the value of that home, like other home owners. But they would then no longer be allowed to deduct any costs related to their property, such as rates or mortgage payments, from their taxable income.
Alternatively they could choose to keep those deductions, but pay tax on any capital gain on the proportion of the home that they used for business, when they sold it.
Catherine Xu Nightingale read this article, last two paragraphs relating to home office expense.
Love Labour - the best thing to happen to NZ and Jacinda is an amazing leader, here's hoping National stays down in the polls so Labour can continue giving a shit about the people and our country, rather than the wealthy getting greedier. Go Labour!
I agree Gary Lin. It seems to be a lot harder for us. I started my small business when I found myself a single parent. Instead of being on the benefit, I started my own cleaning business and worked damn hard to support my kids and work my business. I seriously wonder if I should continue. By the time I have put aside my taxes, I am always surprised how little is left. I know that if i invest my savings, that too will be taxed..just because we have the ingenuity to be independent and work hard we seem to be penalised for it everywhere.
Holy shit dude is that for real. Limit deductions or pay capital gains? This is the least business friendly thing I’ve possibly ever seen, in any country.
For the next election Labour surely will be out
Vote her out is the only way. Labor will target the young and low income earners to get there votes. Hopefully all the sensible parents out there will explain to them how it will effect them as well. She is really bad for NZ. Vote labour out!!!!
They should make thresholds for company tax instead of set 28% imo. It ruins small business & there is no incentive to hire staff or anything along those lines.
Vote them out.
Taxinda the smiling assassin strikes again. Has anyone noticed how she never fronts any major announcements. Wtf is she up to anyway? Her PR people are doing a top notch job of isolating her from negative policy. Guess she then gets to be the nice PM who comes in to save those who are in need of a break.
This is total bs get labour out
Wtf are they thinking? Seriously. I see a big brain drain to Australia until the labour government is out because who would want to put up with this crap??
You are only screwed if you vote these ill equipped ideologues back in. The game here is to get everyone talking like this tax grab is inevitable, then the coalition of losers will offer a watered down version to make themselves appear moderate and if enough dummies fall for it and they are returned to power, inch by inch the tax creep will begin - just like gst. Don’t be sucked in, this does nothing for housing affordability, vote them out, the wheels are falling off and they haven’t the ability to see us through, have you listened to The PM speak - no substance, waiting on a working group to give feedback on every issue - she’s winging it.
Don’t be so dramatic, there are ways around this, sit back and watch.
Sell 300m2 to someone else in the family lol
But this will slow the property price increases. 😂😂😂 yeah right.