Buy Property at Wholesale Prices

We have properties and land available throughout New Zealand.  We can assist clients in selecting appropriate house and land packages in Christchurch, Queenstown, Wanaka, Arrowtown, Blenheim, Nelson, Wellington, Auckland, Hamilton, Tauranga, Kerikeri and the Hawkes Bay.

The key is that these are executive style homes on sections and you are buying at wholesale rates.   You are not buying into the "Apartment Market" which is over heated and due for a correction.

The general criteria for you to participate are:

• A household income of at least $80,000

• Cash, or equity in your own property of at least $100,000

• The ability to borrow up to a maximum of 80% over the joint property assets of your own home and the investment property
   

Buy new quality properties, finished in executive style, low maintenance.

We will show you the correct tax structures to use for your property investment.

All fees are fully disclosed.

Contact Alison Renfrew at Click here to contact us

THE BUILDER
The key to our investment strategy is to match the client with the most appropriate building package through our approved building companies.   Aurum Property Systems Ltd (Aurum) has forged close relationships with a select group of reputable building companies and property developers throughout New Zealand.  Through Aurum we are able to source quality land and building packages. 

Arum have selected reputable building companies that we are confident of the quality of material and construction.  The building companies have been appropriately researched and are recognised as superior building companies in New Zealand.

PROPERTY MANAGEMENT
Professional property managers have been appointed to secure tenants on behalf of clients. The property manager will manage the property on an ongoing basis. (You are in effect an absentee landlord.)

TENANCY
The tenant enters into a long term lease, and has no fear of the property being sold during the tenancy period.
 

How to Create Wealth Through Property Investment

Article written by Alison Renfrew published in Auckland Herald, September 05
The safest way to ski is to point your skis straight down the mountain.  The safest way to drive down an icy mountain is to speed up and drive rather than go slower.  In the case of Chris and Tracey the best way for them to become free of personal debt and accelerate their wealth creation programme is to get into more debt.  Sometimes playing safe is dangerous and taking a risk is the safer option.  "The greatest risk is the risk not taken".

Chris is 34 and Tracey 33. Their combined annual income is $160,000 after tax.

They have saved $25,000 via the purchase of some shares and other savings.  Their budget shows that after living expenses they have a theoretical surplus income of $6,000 per month. They don't!  Up until now most of this surplus has been spent enjoying their lifestyle.  We have worked hard and now we want to enjoy it� said Chris and adds they are now ready to 'get serious' with a wealth creation programme.

Chris asked:  “should we pay off our $485,000 mortgage before we start saving? They are currently making repayments of $3,500 per month and at this rate it will be paid off in 30 years.  We have a more exciting solution for Chris and Tracey than waiting until retirement to be mortgage free.

Their home is worth $720,000 and it has $235,000 equity in it.  We have recommended they purchase an executive property currently, being built, for $527,000 and make their current equity work for them.

In the proposal I prepared for them tax credits and rental income total $8,278 while monthly expenses total $8,152.

Their personal mortgage will be paid off in six years and six months.

Some may argue that the property market bubble is about to burst and that interest rates will continue to rise.  If you buy good quality properties they should be the last ones that will be difficult to rent out.  Real estate agents are keen to manage executive properties and there is a shortage of them throughout the country.  Not all executives want to live in apartments with their young families when they relocate.

Interest rates are expected to come down next year and in ten years time it will make little difference if you purchased at a high or low period in the property cycle. 

The benefit of building a new home is that it is reasonable to expect a capital gain of at least 10% or $53,000 in the first year.  Chris and Tracey could sell their investment property in a year and use the capital gain to make further investments.  If this is their intention they would be liable for capital gains tax.  If they hold on to the property they would they have good income, be mortgage free from their personal home in six and a half years, and have increased equity to make more investments.

In addition to investing into property this way they should save their monthly $6,000 surplus by investing into international shares.  New Zealand is a small country and investors need more diversification than investing solely into NZ.  Now is an excellent time to be investing offshore with our high exchange rate.

If Chris and Tracey choose to increase their wealth by getting into more debt it is vitally important that they have appropriate life insurance in place.  If they become unable to work they need enough insurance to ensure they will be able to continue to meet their liabilities.  There is no point in establishing a wealth creation programme if it falls over due to accident or illness.

In addition to income protection/mortgage insurance they should also have life and total and permanent disability insurance.  Investing, without appropriate insurance in place is like driving around without a seat belt.  Not having appropriate insurance in place is a risk not worth taking.  You must insure for catastrophic events.

Contact Alison Renfrew CLU, CFP Click here to email us