tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, July 15th, 6:28PM

News

rss
Latest Headlines

[Book] I Buy Houses: The Property Investor's Handbook

Despite what most people will tell you, there is a right time and a wrong time to buy real estate – and timing could mean the difference between getting a good return and losing your home. Experienced and successful investor Paul Do shares the secrets of his success in a way that will allow all readers to benefit from the upcoming property boom times.

Monday, February 16th 2009, 12:00AM

by The Landlord

Reviewed on behalf of Good Returns Bookstore by Graeme Fowler

I Buy HousesThis book is written from an Australian focus, but can also be applied in many ways to the New Zealand property investment market. Paul Do is the author and has been investing in property as well as the share-market for almost 20 years. He starts off by discussing the advantages and disadvantages of property which includes leverage, security and adding value.

He talks a lot about apartments vs houses as well as capital cities vs the regional areas, and has a lot of information on past growth areas for anyone that is interested in knowing that. Again it is based on the Australian property market, although it would seem that our market overall in New Zealand would have followed fairly closely.

The author has a substantial background in pricing and financial analysis which becomes even more apparent when it comes to using the SYSTEM T formula he has designed. For those readers that are interested in formulas and technical analysis, this will be excellent reading.

His formula goes like this: –
Proceeds = s (chance of success) x m (how much it is geared) x e (initial equity) x [1 + y (average net yield) x (1 – t (tax rate)]x T (years) – Total Interest Cost. If you can work that out, you’re a lot smarter than I ever will be. He does explain this in more detail, but I must admit that is was a wee bit beyond me.

Paul then goes on to explain more about research, the 80/20 principle which he says to spend 80% of the time researching and only 20% of the time looking at properties. He uses a lot of analysis to work out when a good time to buy is using a ‘buying zone’ graph and then goes on to discuss real estate agents, auctions, doing inspections, types of valuations, negotiations, conveyancing and a few other tips for the beginning investor. Lastly he has chapters on property management, development and selling, selling he advises against if at all possible.

In summary, this book will have some value to new investors, as well as the experienced ones, and the bulk of the information in the book can be applied to the NZ market as well.
3 ½ stars

To order your own copy please visit Good Returns Bookstore or click here

« [Toolbox] The Tax Files[Book] The Complete KiwiSaver »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 15 July 2024 11:47am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com