Taranaki Property Investors' Association

022 6583 798

taranaki@nzpif.org.nz

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07-08-2006

Love This Place ...

Hi to all the members. I’m Teena, and I’m on your executive committee. January and February this year, I travelled round the North Island alone for 3 much deserved weeks visiting family and friends.

I had a couple of Aunties to visit in Wanganui. As they weren’t home when I arrived, I went into town for a spot of lunch. The last time I was in town was about 26 years ago. What a transformation… and the flower baskets, wow. So I shot across the road to Mid Avenue Real Estate, and grabbed listings for all 4plus bedroom homes. I went to as many houses as I could find on my map, and selected a property for myself. I decided this is where I want to live. I came from Napier, my home of 22 years. And I have just bought my first investment here down Puriri St. To top it off, my friends from Blenheim want to move here also, because the house prices are still good.

I was attracted to the cafes (very much like Napier), the flowers, (very much like Hastings), the close proximity to Taranaki, Manawatu, Wellington and Hawkes Bay. Now I can go see all my family and friends in these districts anytime.

I sold my rentals in Napier very easily, at the new government valuation prices. What a boom, a great experience for a novice investor. My investments had doubled, and in such a short time. I had years of frustration, a flat market, and not being able to borrow more money because the equity just wasn’t there. Not forgetting being tied to one bank wondering “how can I get out of this situation”. Things have finally paid off. I now have some cash to play with, and can make my investing smarter.

I did keep one house, as it was leasehold, and our family home. Unfortunately the lease was up for renewal this year, so no one wanted to buy it. We now have a solution. Another couple, who so desperately want their own home, would like to buy half net of our equity. It’s a win/win situation. We get to have our own room for whenever we are back in town, (sofas are not great). We can still work on the house, together. The location is great, McLean Park is across the road, town is 15 min walk. It has 5 bedrooms and 3 bathrooms, and opportunity to add another two studio rooms at the back. We will freehold the property in a year or two when it’s more affordable to all of us. I believe, in the next boom we will double our money, and I never need to worry about tenants in Napier, or selling the house at a loss.

In Wanganui, it’s great to see so many people working on their homes. And now is still a good time as any to buy rentals. Ron Hoy Fong said, following every property boom there is a rent boom. Some of the returns aren’t great, but for me, if I spend $115,000 on a purchase, I expect $230 week in rent, that’s after renovating of course. I’ve quickly learnt that Property Managers are conservative in their rent appraisals. Stick to what you know to be true, without being greedy. I recommend having a due diligence clause or building report clause. Don’t rush… do your homework. Don’t be pressured into contracts, and stick to your guns.

I love this place. There is endless opportunity. I live in town, and love the close proximity to everything. There is work if you’re not fussy, (I am). There is opportunity to start your own business (that’s what we’re trying).My savings in petrol allow me to just whiz out of town whenever I need a break from visitors. I go to Feilding to see the cuzzies and have a brew, or Taranaki to see Mum and the sis. I’m so looking forward to my first summer. The education facilities are great for my 5 year old. Napier was nice but it wasn’t my home. Here in Wanganui, I am home. I descended from Hinengakau, and Taumarunui is my Turangawaewae.

Just one last thing, Shaun and I are your Librarians. We would like your donations of no longer used books to help build the library stocks. The library will be of benefit to its members, especially the newer or yet to buy investors. We will have a display at Tuesday nights seminar. You can bring your donations along then, or give us a call. I am happy to collect by arrangement. Give me a call.

 

Cheers

Teena

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