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HAWKES BAY PROPERTY INVESTORS ASSN PRESIDENTS REPORT To NZPIF Conference 2011 This is written after we had Olly Newland to speak at our meeting in July. He attracted one of our best attendances for some time with 118 members, new members who joined on the night and about 10 Manawatu Property Investors Assn members also. Twenty members also attended breakfast with him next morning. Although he is now mainly a commercial property investor he had a very interesting outlook on the general property market. Out of “10 Game Changing Issues” 8 were positive. In other words he saw a good future in property investment. He stated a number of times that property is a long term investment and it is very easy to forget that as you are involved in the minutiae of day to day problems with tenants, dripping taps etc. More than one member commented later that they knew most of what he said, but it was good to have it reinforced and to have that overview. Many thanks to Graeme Eagle, our Secretary and a Vice President who organised his visit. While the Auckland market is different to the rest of New Zealand, other areas normally follow. Rents are rising in Auckland with a shortage of rental properties available to rent. While that is not the case in Hawkes Bay our “Market Forum” conducted over a number of months has shown few members with vacancies of any length, although the calibre of prospective tenants has dropped. In my view, now is a good time to buy as cash flow positive properties are available, although all the normal rules of purchasing apply, look at 100 properties, put an offer on 10, negotiate on 3 and buy one. If the numbers don’t work, don’t buy it. One of the positive things to develop our the last year has been the fact that members are staying behind after a meeting to talk and network. The Coffee Club each 1st. Saturday of each month is also worth attending as it’s a chance to really chew the fat with some very experienced and successful investors. Collectively, we as a group have immense knowledge and experience, and the great thing is we are prepared to share it with others. Our tax deductable subscription is very good value for this fact alone. Topics for future meetings are Insurance, why are premiums rising and will it continue? Mediation, what it can do and what it can’t do. Debt Collection, the Ministry of Justice system and the private system pros & cons. Xmas party. Bus trip of Property Brokers investment specialists, Jason Whittaker and David Scapens. Prospective tenants role play. A night of property investment board games. Topics at previous meetings this year were- Jonny Van Leuween, OPIA executive member on his property investment career. IRD appetite for property investors with a taxation consultant and accountant presenting. Dean Leftus Mid winter Xmas dinner. Currently we have 200 members, a membership can be a couple, which while down from the boom days of 2/3 years ago is still healthy. We have approximately $60,000 in the bank so we are well funded and have an executive that is energetic and reliable so my job is made very simple. If you get the feeling, that as a group, we are the parasites of society as some of the letters to the paper suggest, don’t worry, as some of the ideas propounded by these self styled commentators are so poorly thought through as to be laughable. I include the Labour Party proposals for a Capital Gains Tax amongst them. Even the Tax Dept said it would cost more to implement that what it would gather. My view is that there will be a Capital Gains Tax eventually, but can only hope it will be graduated and not apply after 5 years, although I suspect it would be 10years as it is now. As any organisation needs new members , keep talking to any property investor who is not a member on the benefits and try to get them to come to a meeting, we now have Alan Brading, an executive member as our contact man for new members so we can now look after new members much better than before. Graham Duff President. |
