In this blog post, we delve into an inspiring property investment journey that highlights the potential of Westport, New Zealand, as the cheapest place to buy property. This story not only showcases a successful purchase but also offers valuable insights into the importance of networking and quick decision-making in the property market.
The Journey Begins in Westport
Back in 2021, Westport was recognised as one of the most affordable locations in New Zealand for property investment. With a modest starting budget of $4,000, we set out to find the cheapest property possible. We successfully purchased a house for $75,000, which was listed online for $80,000. This discrepancy highlights the importance of direct communication and connections in the property market.
Finding Off-Market Deals
One of the key takeaways from this experience is the value of off-market deals. As any seasoned property investor will tell you, these opportunities are where the real potential lies. My builder, who had already purchased two properties in Westport, was informed by a local Ray White agent about a property that the vendor was reluctant to list online due to its current state.
Building Rapport
My builder established a rapport with the agent, who was an avid hunter. Their shared interests led to a strong connection, allowing us to secure the first chance at this property. This experience underscores the importance of building relationships in the property investment world.
Negotiating the Purchase
After viewing the property, which was in a dire state with a hoarder tenant, we negotiated a lower price of $80,000 with an unconditional offer. The tenant’s situation was a concern, so we devised a plan to encourage him to vacate the property. My builder brought a box of beer as a gesture of goodwill, which surprisingly led to the tenant agreeing to leave sooner than expected.
Finalising the Deal
As we approached the settlement date, we discovered that the property was still in a poor condition, with more rubbish than before. We leveraged a clause in the sale and purchase agreement to negotiate a further reduction in price, ultimately securing the property for $75,000. This experience taught us the importance of thorough inspections and the ability to negotiate effectively.
Turning a Profit During Lockdown
Just as we were set to settle, Auckland entered a COVID lockdown, creating uncertainty about the property. However, we decided to list the property privately on Trade Me, initially asking for $150,000. After some negotiations, we sold it for $118,000, resulting in a profit of $38,000 without making any renovations.
Key Takeaways
- Speed and Efficiency: Quick decision-making is crucial in securing good deals.
- Networking: Building relationships with agents and locals can lead to exclusive opportunities.
- Negotiation Skills: Understanding the terms of sale can help in negotiating better prices.
- Market Awareness: Being aware of market conditions can help in making informed decisions.
Conclusion
This experience in Westport exemplifies the potential for profitable property investments in New Zealand’s most affordable locations. As we continue to teach these strategies in our upcoming eight-week deal sourcing programme, we encourage aspiring investors to learn the skills necessary to identify and secure lucrative property deals. If you’re interested in enhancing your property investment skills in 2024, consider joining us for this valuable opportunity.
For more insights and tips on property investment, stay tuned to our blog!
