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21-06-2016

How to achieve success in property investment

Ron Hoy Fong is back in town

By Richard Woodd, TPIA executive member

Ron Hoy Fong might appear as a rough diamond in his work shirt, denims and sneakers, but TPIA members who attended his presentation in New Plymouth on June 18, 2013 were left in no doubt that Mr Fong is very successful person with an all-consuming passion for investment in real estate.

He’s back in town on Tuesday June 21 at St Mary’s Peace Hall, fronting the TPIA’s monthly event, starting 7.30pm.

Three years ago many were sceptical of Ron’s belief that the Taranaki market will double in value between 2007 and 2017.

He is now causing jaws to drop with his recent assertion in the NZ Herald: "The market is going to go bananas after May. I anticipate we'll jump back up to 50 per cent over capital values this year ... we are not in a lull. All we had was the Reserve Bank's new ruling and now they are going to go for it."

In addition to residential property investment, Ron runs an investment coaching and mentoring scheme under his Ronovationz banner, which he says costs his students “half the price of other similar services.

The scheme provides 12 months of property investment mentoring to assist people in becoming capable property investors.

He guarantees that “if you are unable to purchase three properties after the 12 month programme then you can attend another year free of charge. If you are unable to purchase a property for the reason of not being able to obtain finance, a full refund will be made.

“I am 100% successful. I have never been asked for a refund for failing to meet my guarantees.”

His graduates are becoming millionaires. They idolise Ron.

Ron graduated from Mt Albert Grammar, got a job with Social Welfare, worked his way up to senior management over 26 years. He went to Australia for a two year holiday, had nothing to do, got talked into door to door selling and claims to have become Australia’s top pots and pans salesman.

Between the ages of 21 and 31 he bought 11 properties.

In 1992 at the age of 45, he left Social Welfare and started selling off to become debt-free. He started a grocery store called the Tofu Shop and ended up with nine of them which he franchised and sold.

“I began investing in April 2003, starting with $180,000, and bought 21 properties that year. I did this by buying, doing it up, revaluing, remortgaging, buying two, remortgaging, buying four and so on. I now have over 30.”

His first buy was in Onehunga, bought for $192,000, now worth about $400,000. A similar rise in value applies to all of the properties Ron bought. He paid the lowest deposit possible and when able would borrow 95% of the purchase price.

“I bought places that were often gang-related, maybe trashed, but I could get them cheap and improve them. Not major renovations but enough so I had no difficulty renting them out. Sometimes it only required a good coat of paint and lots of Janola inside. I never pay the asking price. I beat them down.”

The evening is generously sponsored by Carters Building Supplies. A representative of the company will make a short presentation.

Property investment is a hot topic at the moment and many are unsure of what strategy to adopt in the short term. Ron will share the strategies that can be used in the current market and will also share his experiences in property investment when times are not so good and what to do in a rising market.

Evening Sponsor: Carters Building Supplies