Hawke's Bay Property Investors' Association

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28-10-2015

NZPIF CONFERENCE, AUCKLAND, Oct 17 – 18th, 2015

Graham Duff

For me this was a very good conference, one that gave us all the latest trends and thoughts of very accomplished speakers.

Dolf de Roos was the key note speaker. I had never heard him before but he is a very bright Canterbury University PHD in electrical engineering graduate. Has written 14  books on property investing and more importantly, has made his fortune from property and now lives in Phoenix, Arizona because there is more opportunity there. Very much still a Kiwi and a pioneer of NZ property investing with the Kiwi attitude of “let’s do it”. Altogether, inspiring and worth listening to!

There were 15 speakers who covered a wide range of property related topics, all of whom were worth listening to, even if you didn’t agree with them all.

I shall go through the main highlights as I heard them.

Andrew King, Chief Executive, NZPIF.

Always speaks sense and to the point. Showed that the gap between Renting and owing a property is $197 a week. On that basis rents can rise further.  

The property cycle is different this time as normally when prices rise, interest rates rise. They are now falling so will extend the cycle to longer than normal. We are about halfway through the cycle in Auckland.  

There is an obvious correlation between migration and house prices, there always has been and is now, especially in Auckland. The Auckland market is slowing but will still climb slowly as more migrants are still arriving and not enough homes are being built, even now.

 Dolf de Roos.

Think for yourself, ignore what’s in the media as they are only interested in headlines. Things are never what they seem, so ignore the nay sayers.  Think for yourself. Everything is perception.  

If you think education is expensive, try ignorance. Be ahead of the pack, ie Insulation & heating.  Do things differently than your competition. 

Prefers commercial to residential, but have to chose carefully what you buy. Not for the faint hearted.

A new development in property investment is crowdfunding.  Could change the whole structure of finance. Google crowdfunding to understand it. Malaysia has accepted it with no restrictions. The way of the future.

Kesh Maharaj 

Very tiring to listen to, talks and thinks at a million miles an hour. Runs his whole business from a smart phone, his accounting systems are all with Xero in the cloud. Has all his ratios built into his systems so can review anything at any time.

Must be able to step away but through systems the business  keeps  running. Has a 24/7 login capability for tenants to see their rent status.  6 monthly reviews for rents to be at market rates. Pays his bills every Friday over the internet.

Roy Hoy Fong. 

Has spoken to us 3 years ago, now has a mentoring group of with property worth $700,000,000. Wants to hit a billion.

Have to have a mindset you want to succeed, otherwise forget it. Not necessary to pay off all debt, good debt enables you to make more money if you can service it.  

Don’t buy unless you can get your deposit out in 3 months. Only deals in Auckland market. 

Believes in the property clock, 2 years to run yet.  Chinese will come back into the Auckland property market in 5 years when prices will double. Chinese Govt have authorised overseas investment of $75 billion in 5 years.

Jo Johnson.

Firm believer in Property Cycle and uses it. Stays out when prices are high.  Has 2 years to run in Auckland. Only buys in areas she knows well. Builds a good team and uses them. Need to know what is a good deal through being up with the market which takes time and effort.

Shambuel Eaquab  A very bright alternative economist. Took a holistic view in which he felt the increasing inability of the young to buy homes would eventually lead to political pressure to radically change the property market. Long term outlook for property investors not good. Really talking about the Auckland market. Didn’t agree with many of his thoughts. Was, however refreshing to get an alternative viewpoint.

Kyron Gosse

Another alternative viewpoint. He is young, founder of Young Kiwis in Property, lives in Amsterdam, buys property through his smart phone from anywhere in the world.  

He considers himself a “Digital Nomad” who can live anywhere in the world, as technology is changing the way we live. His mentor is Steve McKnight who says “tell me what you can do, not what you can’t”. Has a multi million dollar property portfolio. 

Believes in international property crowdfunding and thinks internationally. Much food for thought.

Jono Ingerson  

Runs Core Logic which now has much better data than previously which  allows them to drill down into the types of buyers.

Do not believe all you hear and read as the statistics do not support many of the media assumptions. Long term Chinese money will flow into Auckland over next 20 years.,  only a temporary slowdown at present. Auckland prices will continue to rise.

There Is a ripple effect from higher Auckland prices as some people cash up and move to the regions. Hamilton and Tauranga just starting to see this ripple effect. Hawkes Bay has moved up slightly, but still behind rest of NZ.

Fiona Camberun 

Has evolved into a property trader, but believes strongly in ethical dealing. Needs to be a win win deal. Was a personal trauma councillor who after the breakup of her marriage read “ Rich Dad, Poor Dad” which was her lightbulb moment. Found an online property mentoring programme. Is risk adverse and not a natural property investor, but believes anyone can learn property skills. Prefers property trading with no money down.

Summary

The Auckland market will continue to rise for at least two years, but at a reduced rate. In five years the Chinese will buy in big time and the market will rise again.

Do not believe the media, follow your own beliefs using the property clock and educate yourself in property.

Hawkes Bay has yet to start rising in value, but immigration is the big driver of increased property values. An area must have an economic reason to attract people and jobs.

Use technology to streamline your systems, all you need is a smart phone.

Property  is still a good bet for long term wealth generation but you need to work at it. It won’t just happen. Surround yourself with winners and you will be a winner.

For the official conference information please click on the link.

 

 

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