Mortgagee Tender of an Office Warehouse Building in Northcote, Auckland

We have a mortgagee tender of an office warehouse building
in Northcote that is expected to sell well below its market
valuation. This is your opportunity purchase a property at
huge discount.

Address - 39 Woodside Ave, Northcote

This property is on a 1,229m2 freehold land. It is Zoned
Business 9 under North Shore City district plan. It
consists of a basement warehouse with two levels of offices
with a total combined floor area of 1,802m².

Key Features:

• 1,146m² of office including common areas

• 524m² of warehouse with roller door street level
access

• Well suited to owner occupiers/ investors

• Excellent access to State Highway 1

Government valuation as on 01 Sep 2005 was $1.8m


The property is being sold by Tender closing 3.00pm,
Wednesday 26th November 2008

Venue: Level 3, 50 Kitchener Street, Auckland City

Please let me know of your interest so that I can furnish
you with additional information.


Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
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Two Hospitality Deals in New Zealand .....You Can Not Afford

There are two hospitality deals you simply can not afford
to miss. One of them is a mortgagee sale. The other one
although not a mortgagee sale is even better......

A. 17 Wellington St, Russel, Bay of Islands

This Boutique Lodge is based on an original family
homestead, built at the beginning of the twentieth century.
The Lodge has been carefully renovated and restored with
significant new buildings added, so that, today, it is one
of The Bay of Islands most exclusive boutique lodges with
Qualmark 5 star rating. The attention to detail and quality
of this property must be seen to be believed. The lodge is
located just one minute's walk to Russell's cafes,
restaurants and water front.

Key Features:

• Luxury accommodation for discerning travelers

• Breathtakingly beautiful region

• Sale includes all chattels and Spa

• Private 2 bedroom owners accommodation

• Beautiful gardens and plenty of room to expand

You can view the property by visiting:

http://www.flagstafflodge.co.nz/rooms.html

The property has a registered valuation of $2.45m

It is being sold through a Mortgagee Tender closing 3PM
Wednesday 19th November 2008.

B. Property : Quest Matakana

Property description: Less than one hour north of Auckland,
the Property offers 17 luxury villas set amongst 37 acres of
grape vines, olive groves and native bush. The Glen Edin
river runs past the southern boundary of the Property
providing access to Sandspit and the beautiful islands of
the Hauraki Gulf from the property’s private jetty and
boat ramp. Additional features include an all weather
tennis court, heated swimming pool, manager’s residence
and conference facilities.

Of the 17 villas, 12 are available for sale, together with
the management
rights for the entire business, providing the successful
purchaser control of the Owners Association through which
the underlying freehold and facilities are owned.

Date opened: Mid 2007
Number of rooms: 17 luxury villas which can each be
configured with one, two or three bedrooms to suit
guests’ requirements.
Note that only 12 villas plus full management rights are
being offered
for sale
Star rating 5 (Qualmark rated)*
Conference facilities: Meeting rooms capable of catering
for up to 16 guests.
Other features: • Vineyard & olive groves
• All weather tennis court
• Heated swimming pool
• Jetty & private boat ramp
• Manager’s residence
Site area: 14.981 hectares.

Tenure: Freehold land title subject to an individual lease
structure for each of the villas. This arrangement has been
adopted in order to give the same economic benefits as a
perpetual lease. The lease arrangement has been structured
to avoid subdivision which would result in the limiting of
access to the waterfront and common facilities.

Each villa owner owns a share of the “Owner’s
Association” which owns the
underlying land, managers residence, conferencing room,
common facilities
and future development rights of the property and is the
Lessor of each of
the villas.

Management agreement: The entire Property is subject to a
10 year management agreement to Riverside Estate at
Matakana Management Limited with the option to renew for a
further 10 years. This management company currently
operates under a standard Quest franchise agreement and
trades as Quest Matakana.

Five Villas were sold last year $750,000 for one and four
at $650,000 each. Therefore you control the body corp,
management rights the managers residence in effect 70% of
the property.The other ownwrs own 1/17th share. There is a
vineyard olivegrove , pool, tennis court and boat ramp.
Replacement cost over 8 mil.

Please view the property by visiting:
http://www.questmatakana.co.nz/index.site.home.property.21.html

Producing 600k pa at 35% occupancy in its first year and
tough trading conditions. It may be possible to increase
occupancy to around 55% over the next two years with better
marketing even in the present marketing conditions.

We believe that $ 3,500,000 clean offer will secure the
property. Going by the past results the sale price of the
remaining 12 Villas is likely to be close to $8.5m plus
interest in business.

The property is being sold through Private Treaty.

Both the properties represent quality......these
opportunities have become available to the difficult market
conditions.

Please let me know of your interest. look forward to
hearing from you.


Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

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Prime City Fringe Investment for Sale- Auckland CBD

This is a three level stand alone concrete building with Greek
pillar frontage located between Symonds and Upper Queen Streets on the city fringe of Auckland CBD. The property is in a very popular area and handy to
both City and Newton motorway links. Street has character
appeal in elevated position with mix of residential and
business uses. There is a Pub on ground level occuping approximately 400m². The property has ornate interiors with high studs.

ADDRESS 18-24 St Benedicts Street, Auckland City

ZONING Mixed use

TENURE Freehold

INCOME $91,000 pa from Pub & Parking

SITE AREA 2,391m², approximately. Approximately half is bare land.

CARPARKING 50 carparks

COMMENTS There is a Current Resource Consent for development
of adjoining offices on both sides of present improvements.

SALES METHODOLOGY FOR SALE BY PRIVATE TREATY

COLIN KUMAR
Commercial/Industrial
ddi. 09 363 1626 m. 027 684 1114
c.kumar@barfoot.co.nz

Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

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Small "retail trophy investments" in Albany, Auckland

I have two small "retail trophy investments" in Albany area
that may be of interest to you if you are looking to spread
your risk.

A) Unit C, 40 Arrenway Dr, Albany

This retail property is situated in the heart of Albany
Business Center. Returning $38,000pa + GST + Outgoings
makes this property an attractive proposition. There is an
initial lease of 6 years commencing 01/10/2009 with 2X4
years ROR to a Japanese Restaurant. It is well
established and on an outstanding corner site.

KEY FEATURES:

• Excellent street frontage

• Shop is well serviced

• High quality retail with excellent fitout

B) Shop 6, 4 Arrenway Dr

This 85m² retail unit has been well tenanted within a
three level retail/recreational development located on
Arrenway Drive within the Albany Heights Business Park. The
shop is leased to a Home Interior tenant for an
initial term of 3 years with one ROR of 3 years commencing
20/09/2008. The net rent from the property is $30,000.

Neighboring units are, Sauna shop, Golf Driving Range,
Butcher shop and Asian restaurant.

KEY FEATURES

• 85m² high quality retail shop

• Shop is well serviced

• International traders nearby

• Easily accessible locality and Albany Business Park

• NZ Post nearby

Both the properties are being sold through Private Treaty.
Please register your interest through a return email and I
will send you additional information.

Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

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MORTGAGEE TENDER - 15 SURREY CRES GREY LYNN, AUCKLAND

This is an outstanding property .......a beautiful verandah
villa occupying a prime corner 708m2 freehold site. It is
just meters from the fashionable Westlynn shops.

There is a current lease in place at $100,000 pa, plus GST,
with a rent review in 2009 plus a three year right of
renewal. Please note we have been notified that the tenant
will not be renewing their lease and will vacate 31st
January 2009. This property will suit an investor or owner
occupier.

A resource consent allows the 200m2 (more or less) villa to
be partially utilized for retail purposes with the balance
as live-in accommodation. The property has been extensively
renovated for its current use and offers five off street car
parks.

It is a Superb location and a Superb opportunity! CV on the
property is $900,000 dated 01/07/2005.

The property is being sold through a mortgagee tender
closing on 11 Nov 2008 at 4:00pm.

We do not have access to the property but you will be able
to see the retail part of the property during normal
trading hours.

Please let me know of your interest and I will send you
additional information. The tender documents will be
available shortly.


Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

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The most Outstanding Industrial Investment in Auckland

This is simply the most outstanding industrial investment
that we have listed in a very long time. It has
everything.......a high quality building, an outstanding
tenant, a very long lease and an excellent return on
investment.


The property is located just off Lincoln Rd in Henderson.
It is a state of the art building just minutes from the
motorway. Specifically designed for one of West Auckland's
fastest growing companies this property is constructed to
the highest standards. A ten year lease with guaranteed
rental growth assured makes this the ideal investment.

Key Features:

• High stud clear span warehouse space

• Roller door access plus gantry

• High profile site

• Fast developing area

ADDRESS

291 Lincoln Road, Henderson

LAND AREA
3,492m² more or less Freehold

BUILDING FLOOR AREA

First Floor Office/Amenities 442.0m²
Ground Floor Workroom/Amenities 438.5m²
Warehouse 1,618.8m²
Total 2,499.3m²

OCCUPANCY ARRANGEMENTS

Lease Format Auckland District Law Society Fifth
Edition 2008
Lessee Glass Relate Manufacturing Limited
Guarantor Ben & Marijke van Nooijen
Initial Term Ten (10) years
Commencement Date 1 November 2008
Rights of Renewal Two (2) further terms of five (5) years
Final Expiry Date 31 October 2028
Annual Rent $360,000
Rent Reviews Two (2) yearly to CPI or market
(whichever is greater)
Improvements Rent Percentage 10%

Please let me know of your interest because this
outstanding will not last.

Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
The FIRST EVER Fully Branded, Customizable, Lead Generation &
Attraction Marketing System Of Its Kind That Combines Attraction
Marketing, Affiliate Marketing, CashFlow Programs And Traditional MLM
into ONE Super Powered Profit Pulling Machine:

rel="tag">http://www.wealthonlineguru.com

Are you Ready for the Wealth Shift?

During the 1929-1932 depression there was a huge wealth shift. There were millionaires who became paupers and there were entrepreneurs who started with nothing and became multi-millionaires. During periods of stability status co is maintained. Fortunes are made and lost during times of financial crises. There are people who freeze with fear and let events over take them. Their non action is the cause of their down fall. On the other hand there those who tread with caution on their nimble feet through the thorny financial jungle. It is not that these people do not have fear but they learn to act in spite of their fear because they have they are mentally prepared to meet the challenge head on.

The events of last week are indicators of things to come. US Government and Federal Reserve acted in time to prevent what could have been run on the banks and collapse of the financial system. I have been following the crisis closely and not one financial expert is able to comprehensively tell us as to how much rot has set in and what is the magnitude of the problem. It seems the problem is not limited to sub-prime loan crisis. America is engaged in two very expensive wars that has cost trillions of dollars. The American government and people have been living beyond their means for several decade and it is all catching up. So far there has been no talk of tightening up the belt, bringing in financial discipline and sacrifice that is needed to put the house back in order. There is only talk of patch repairs and this to my opinion will simply not work. The so called bail out package will result in printing or electronically producing more money. This will dilute the value of the dollar and may cause inflation which in turn may result in increase in interest rates. US is the consumption power house of the world. Sooner than later US will need to tighten their belt and reduce their consumption if they have to put their house in order. This may no longer be choice for them.......circumstances will dictate that they will have to reduce consumption. Their pockets will not support the purchasing power. This is like to result in world economy slowing down in short run until such time slack is picked by other developing countries.

How does this situation relate to real estate in New Zealand? There is break down in the financial system in USA. We are feeling the reverberations but are not sure how it will affect us. We feel that the problem is far away across the ocean and our money and life style is safe and protected. The world that we live in has completely changed during the past two decades.....we are no longer isolated. Most of the money now is electronic. It is not even printed. The financial network is so deeply inter connected that it will be naive to expect that the pain will not hit us sooner than later.

It is the financial system that pumps life into real estate and businesses. If the financial system is damaged then there will be little or no money forth coming to fund real estate or new businesses. Most of us related to real estate are already feeling the crunch. It will take time, effort and energy to rebuild credible financial systems in which we can have faith. It will take a new generation of entrepreneurs to rebuild second tier financial companies that have vanished from the scene. This is not going to happen over night. We are in for a long haul.

The investing strategies will have to change drastically if one is to remain successful. If you are investing in city fringe at 6% to 7% yield in the hope of capital gain then just forget it. There is likely to be no capital gain during the next couple of years. You will just baby sit a negatively geared property out of your pocket for years and miss out on several buying opportunities that are likely to come up during the next year. Buy properties that give instant equity i.e by buying below value. This better than waiting for capital gain that my not happen for next 3 to 5 years. Also buy cash flow positive properties that not only pay the mortgage but also leave some money in your pocket. The yields are steadily going up and interest rates coming down. If you have patience cash flow positive properties will once again be a reality sooner than later. These two strategies will give you cushion if things go wrong. Don't rush there will be plenty of time to buy.

Please have a very hard look at the tenants and also on the leases. There is a saying that more leases you read in bed the richer you will get. We are in a shrinking economy......some tenants will fail. During the last one month 6 real estate companies in Auckland that I know of have closed shop or gone into receivership. Beware of tenants who are in the financial sector or related to real estate. Please keep enough cash on hand so as not to get into trouble. Try and increase your equity to loan ratio to less than 60%. When the markets start to move up then you can start reducing it by buying aggressively.

As most of us do not have enough knowledge about the internal health of our banks it is prudent to keep your money in a bank from which you have borrowed money. Your borrowings must always be higher than the money you have in bank. This will be a great security if the bank goes belly up. The receiver will have to offset your money with that of your borrowings. If you have borrowings from more than one bank then spread your money accordingly.

I will recommend that you watch the under mentioned video by Robert Kyosaki giving predictions for 2008. Although this was made before the current crisis it still has lots of relevance and sound advice.

http://www.youtube.com/watch?v=FOKn7tiUMyc

These are interesting times for those who are willing to take action with cautious optimism. I will appreciate if you will leave your comments on the present crisis. Your comments will be invaluable and will enrich us to help us cope with the present crisis.

Look forward to hearing from you.


Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
http://www.wtptat.com?q1=37708_Blog2

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"When Fools Rush In"

Olly Newland's Column, August 2008

We are now about six months into the real property downturn. Until last December there was still a positive note -- despite the collapse of several finance companies and with other hints of worse to come.

Now there are those who say 'the worst is over' and that we can look forward to a more stable market and the resuming of the property bubble.

I do not believe that at all. Some optimists and their advisors are merely seeing a false dawn, in my view, and there is much more pain to come.

Since the beginning of the year, many more local finance companies have collapsed or shut their doors, and overseas the financial markets are still deep in trouble.

Sooner or later there will be a real crisis, with emergency measures to be taken -- and that will be the end of the beginning.
It often takes a crisis to solve a crisis.

Judging from previous experience, I'd say we are probably about one-third of the way through the problem, with much more unpleasantness to come, but (and this is an important distinction) only for a relatively FEW.

Learning from the past
During the 1987-1991 meltdown down both locally and internationally I was continually amazed to see that the restaurants were full, properties were still sold for good prices, people continued to go on expensive overseas trips and buy the finest wines.

This taught me that a recession (for that is officially what we are in) really only affects a small number of people. For many, it is business as usual.

While 10% of the population may be suffering in the recession, 90% ARE NOT.

Now all this is good news indeed for many property owners and I, for one, am more optimistic than ever. Here's why.

If we are one-third of the way through with two-thirds to go:
It means that the real upturn (or least a stable market) will likely arrive towards the end of next year, 2009. Hence, most of us can while away the the rest of recession in relative comfort until then.

It means that investors can now drive bargains that were unthinkable to many 12 months ago. Take advantage of this while you can.

It means that fuel prices should steadily fall (not all the way back, but enough to take the hurt away), interest rates should drop (cheers!) and the banks will relax their po-faced attitude of today and be more realistic tomorrow.

All we have to do is survive for the next 18 months or so, gather up real bargains in the meantime, and get ready for the better times ahead.

Can we get this over with?
You may well may ask if the difficulties we are seeing now could be put right more quickly?
In my view, no, that will not be possible for the following reasons:

(1) Something like $4 billion or $5 billion of people's spending power has been locked up in failed or frozen finance companies. For an economy the size of New Zealand this is way too much. It matters very little if the frozen money is lost or is eventually returned in part -- the effect is the same.

(2) Remember that the statistics quoted -- that 'only' around 16,000 investors are affected -- are patently untrue. Each investor will have have dependants and family, all of whom will be affected to one degree or another. More likely 300,000 people have been affected with stalled deals, properties not settled, projects frustrated, purchasing power crimped. This takes a long while to work through the system, and hence the time delay.

(3) In addition to the finance company debacle, we have more and more lay-offs, and companies reducing profits. All this tends to make people think twice about spending on any major items. (Just ask the car dealers.)

(4) For every mortgagee sale you may see advertised, I estimate there are at least another 50 others who are under real pressure and are selling before the bank does it for them. This backlog has to be cleared away as well.

(5) Even if interest rates were slashed by the Reserve Bank, I doubt it would help. This approach has been tried in the USA and Japan with negligible results. Ask yourself: If interest rates were suddenly reduced to 6% would you rush out and buy everything in sight? I doubt it.

(6) Then we have the problem of inflation. Having lived though hyper-inflation in the 70s and 80s I know it can be both a curse and a blessing. Inflation erodes savings and makes money dearer to buy. On the other hand, it drives up prices -- and property is the first to benefit. Inflation is the potential curve ball in the whole equation. All predictions can be thrown out should inflation become a serious issue once again.

The way forward
It is with these points in mind that I caution property owners and investors NOT to rush in right now just because prices may have a slipped a little.

But this is important: don't stay in hibernation either.

What I DO encourage is that buyers start to learn and get a feel for the market. Go out and look at everything for sale -- don't necessarily buy anything. The current painful volatility is a relatively rare opportunity for you to observe a market in turmoil and to study the ugly side of capitalism.

Of course should a real bargain turn up (at say 20-25% below current market) then maybe a buyer should chance their arm... but how will someone 'uneducated' in property investment or unfamiliar with the market tell a bargain from a lemon? It's time to get educated.

Advice for those under pressure to sell
(1) Deal with the problem early. Delay is your enemy.

(2) Go to your bank or mortgagee and explain the circumstances. As unpleasant as that may be, the alternative is worse.

(3) Usually the bank will give you up to three months 'relief' with no further payments required (capitalising the interest). Of course if you have left it late and already missed a a payment or two, you may not get this relief. Hence the need for early action.

(4) The bank does NOT want to take your house back and will do anything to prevent that. They would much prefer that you put the property on the market yourself, selling it in the ordinary manner for the best price achievable.

(5) Remember, if you are unfortunate enough to find yourself in a mortgagee sale situation you can actually pay the arrears right up to the fall of the hammer, if you find the funds, and keep your property.

(6) Suggest to the bank that they take an equity stake in your property. i.e. They become part owners in exchange for some of the debt. When times are better the property can be sold and the bank will get their share of any upside as well. This was done to good effect in the UK during the severe downturn in the market in the early 1990s.

Are the media to blame?
Some people are saying that a lot of the present troubles have been caused by the media and their sensational stories of gloom and doom. This is bunkum for at least two reasons.

The media only reports events as they happen -- they do not invent them. The market is bigger and stronger than the media by far. There is no way the media can influence the market to such an extent that it creates a recession.

Besides, no-one was complaining about the influence of the media when property prices were rising at the rate of a "$1000 a week". People seemed happy enough then.

In conclusion
The present market is a nightmare for some and can be a bonanza for others. With a good education on how to survive and prosper in a falling market and the ability to act in conjunction with proper advice from impartial sources, it is quite possible to take advantage of this falling market to steadily build up a portfolio of residential and/or commercial property -- which can be a springboard to secure your future.

In the months and years ahead I am sure there will be many who will look back and say that they should have acted but have missed out again through inaction.
Make sure you are not one of them.

If you want good things to happen you must take action and the sooner the better.
The more action you take the more chance you have of getting ahead.
Become active.
Become educated.
And above all -- never give up!

Olly Newland
25 August 2008
© 2008 Olly Newland. All rights reserved.

Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
http://www.wtptat.com?q1=37708_Blog2

" All I can say is WOW! WOW! WOW! "
http://www.wtptat.com?q1=37708_Blog1

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10% Investment with Long Leases

If you are looking for a high yield property with multiple
tenants and long leases then please don't look any further.

The property houses high cashflow business with multiple
streams of income that will prevent tenants from going
bust. It consists of 28 boarding house rooms, 18 gaming
machines, licensed tavern and rent from two long standing
commercial tenants.

It is located in the heart of Auckland with exposure to two
high profile streets.

Do not miss out. Cash is king during these hard times.

KEY FEATURES:

• Land - 2,263m²

• Building floor area - 1,621m²

• Net return of $264,694.00

• Carparks - 28

• Price $2,650,000

• Dynamic location

* Address - 388-392 Great South Rd, Otahuhu

The property is being sold through private treaty. Please
register your interest and let me know if you need
additional information.



Best regards,
Mr Colin Kumar
c.kumar@barfoot.co.nz
WE LOVE SELLING AUCKLAND

Top Home Business 2008:
http://www.wtptat.com?q1=37708_Blog2

" All I can say is WOW! WOW! WOW! "
http://www.wtptat.com?q1=37708_Blog1

Automate Your Home Business: http://www.wtptat.com?q1=37708_Blog3

Few Suggestions

Perception can become reality in spite of the prevailing market
conditions. This is why human psychology plays a big role
in determining economic sentiment at any particular moment.
The fact is that we find ourselves in a situation of
negativity. Rather than getting bogged down we have to find
solutions to overcome the present situation. In my job as a
commercial property consultant I am privileged to inter act
with many multi-millionaire investors who are far better
informed than me. I also try and keep abreast the market
situation so that I can improve my own investment strategy
and also pass some useful information to my clients. I
would like to share two strategies that can help us to
profit from the current situation.

A. I was reading blog written by Brad Sugar. His advice is
"The banks will make the decision for you. If they will
lend you money, then keep investing, if not, then stop. Let
me explain ...Most banks right now have cut lending back to
only good solid risks and in many cases they want 30% to
50% as a deposit. You see the biggest lesson right now is
very simple, if you have the cashflow to hold through the
next boom (some time in the next 7 to 10 years) then keep
buying.If you don't have cashflow, then this is a great
time to work on getting a higher paycheck, or get your
Business into a strong profit position (not just high
revenues) so you are ready for the next market run ...Enjoy
the process, there are a bunch of deals around right now and
anyone can get an undervalue property, just make sure you
can hold it and rent it out"

B. Phil Jones explains his strategy through a property
wealth triangle:
"Put simply investors purchase Real Estate to attain one or
more of the above three benefits being:
* Cashflow - Where the properties income exceeds its
costs and delivers an annual profit
* Capital Growth - Where the properties value increases
over time
* Equity - Being the immediate equity an investor banks
when they purchase a property at a discount

If investors can't get any of the 3 wealth Triangle
benefits they cease investing in the market because there
is no possibility of getting a financial return. This
rarely happens as even in a soft or receding market
attractive returns can be made using the right strategies.

Every phase of the property cycle (Boom, Slump & Recovery)
allows investors to achieve one or more of the above 3
financial results.... Immediate Equity, cashflow or Capital
Growth. And if the market didn't shift between phases then
the Triangle would get out of balance with one corner
having more expansion than the others.

Here is an example:

Let us rewind the clock back 18 to 36 months ago and look at
the property wealth Triangle. In that market
lets see where the 3 corners were:

> Capital Growth = Strong
> cashflow = Very hard to find and disappearing
> Equity = Almost impossible to buy property at a discount
because the market was so buoyant

Rewind the clock back to 2001...

> Capital Growth = Was dead, the market barley had a
capital growth pulse
> cashflow = Was easy to get
> Equity = Abounded, it was simple to buy property at large
discounts

So lets look at the current market, where are we at....

> Capital Growth = Flat and soft
> cashflow = Increasing due to increase in rents & inflation
> Equity = There is Truckloads of immediate equity
available because property can easily be bought at a
discount

Intelligent investors read the cycle, check the property
wealth Pyramid and customize tactics to
harvest the profits using the strongest available corner of
the Pyramid. You see the challenge is not that you can't
make profits, the challenge for most investors is that in a
flat market they don't know how to turn "Immediate Equity"
into "Cashflow"."

His message is that in the current market with high
interest rates it is impossible to get cash flow. There is
also likely to be very little capital gain in next couple
of year. The only thing readily available is instantaneous
equity because it is easy to find discounted properties in
the current market. In some ways immediate equity is better
than future capital gain.....we know how much we are getting
at the time of buying. There are new mortgage plans that allow
you to convert equity into cash flow.

Our spring property portfolio will be out this week. There
are some great properties. I will analyze the properties
and will be sending you emails with my recommendations. I
hope some property will match up to your investment
profile.

One last thought "Don't wait to buy real estate, buy
real estate and wait."

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Should I go fishing ???

In the wealth cycle it takes years for the market prices to
move up slowly. But when the sentiment turns negative the
market suddenly nose dives. This is exactly what we are
witnessing today. Share, commodities and property markets
around the world have taken a beating. Media has gone on an
over drive. There is so much negativity all around that the
voice of rationality has shut down. As real estate agents
our phones have stopped ringing. Even the fancy coloured
ads on the front page of the Herald evokes no response. I
think it is the best time for us agents to go on a fishing
holiday. Non of our clients will miss us anyway!

This breather has given me time to think and reflect. A
little research has shown that reality is a lot different
from perception of the market. The slump is a small bump
and we are NOT headed for a market crash because of the
following insulating factors that are in play in our
economy.

1/ High Job Security and a Tight Labour Market: An extra
403,000 since 1998 has reduced unemployment from 6% to
3.4%.

People have confidence buying a home or paying the Mortgage
when they know that even if they lose their job this week,
they can have another one without any hassle next week

2/ Strong Wages Growth: The tight labour market has meant
staff wages and salary payments have increased in recent
years at healthy rates and are likely to do so. Increases
in income create increases in Mortgage servicing ability.

3/ The Mother of All Fiscal Easing's: The Labour government
is sitting on billion dollar surpluses and is looking down
the barrel of a significant election defeat. Michael Cullen
has already signaled he will be releasing tax cuts, there is
no doubt many other benefits will be thrust upon us all in
the hope it will get us to turn insane and vote Labour.

4/ Dairy Industry Boom: Millions of extra dollars is
pouring into the diary industry and that money will flow to
the greater economy and have a stabilizing effect

5/ NZ pulled along by China's Boom: China's economic boom
is having a direct effect on NZ as the look to us to supply
an increasing range of exports to meet there Massive growing
population.

6/ Infrastructure Catch Up: NZ is embarking on a multi year
infrastructure catchup which will flow significant funds
into the economy again insulating it. Talk has already
emerged of electricity cuts this winter and huge investment
in other areas of infrastructure.

7/ The Fed in the US has instigated Massive wholesale
Interest rate cuts: This has stabilized the US economy and
will mean NZ banks can access cheaper fixed rate Mortgages.

The signs displayed in previous NZ economic downturns are
not present today and the factors above coupled with a host
of others is likely in the view of many respected experts to
stabilize the housing market and insulate it from large
falls. Commercial property market gets affected by the
market sentiment but is a lot different from the
residential property cycle.

The sub-prime crises in the US has started affecting our
perception of reality whether it is right or wrong. They
say if the perception is allowed to continue for long it
becomes a reality. Media thrives on selling on our fears
and rationality has takes a back seat for the moment.
Should I go fishing? No way. I think periods of
readjustment like the present one creates great
opportunities. I bought two properties in the last two
months. Both giving returns of over 10%. In fact the one I
purchased in Auckland will give me a return of over 12%.
Both these opportunities were created because of the market
sentiment. I had no competitors and I could buy them at a
discount.

Will I stop buying. Definitely no. I will continue buying
with a strict eye on my cash flow. Anyone who has played
Robert Kyosaki's Cash Flow game or the Hybrid Property game
will realize that one has to continue buying assets in the
down phase of the market to grow rich. I know many will say
that we will start buying when the market bottoms out in the
next couple of months. But unfortunately no one has a
crystal ball to predict the right time. According to me the
current market presents one of the biggest buying
opportunities. There is virtually no competition in the
market. You can go to an auction and will find that you are
the only bidder. Nothing can be better than that. You are
your only competition. The big question is can you overcome
your own competition.

Kind regards

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Developers are having a rough time

Developers seem to be having rough time with the banks. The
banks have become ultra-cautious. Nine months ago they were
very anxious to fund developers with generous
deals. But now the funds have totally dried up. Neither
position makes a lot of sense. This reminds me of Mark
Twain who rightly said that "A banker is the person who
lends you his umbrella when the sun is shining and wants it
back the minute it rains ".

Banks can't be blamed altogether. Whilst some of the
problems are of our own making, especially in the finance
industry, the repercussions from the US sub-prime mortgage
debacle are not. Yet they illustrate once again that we
live in a global village, and that stupidity and greed on
the other side of the planet can cause problems for those
far away and unconnected.

Banks in the current climate of uncertainty will only fund
those development projects that are financially viable. I
have a prime freehold redevelopment site of 3360 m2 on the
corner of Great South and Redoubt Rd opposite the West
Field Shopping Center in Manukau for sale that has the
ingredients that will pass bank's muster.

The vendor has drawn up plans for developing a six level
building with basement car parks. The total proposed
building area is 8585 m2 consisting of retail on ground
floor and hotel/ office suits on higher levels. Quest is
very eager to sign up lease for the 54 hotel apartments.
This along with retail on the ground floor makes this
development a very viable proposition for a developer even
in current market conditions.

The demand for retail and office space in Manukau is very
strong. I have also been informed by hotel operators that
there is shortage of rooms in Manukau and hence interest
from Quest. This along with location of the site makes this
project very viable. Vendor has informed me that there are
no height restrictions for this site although this fact
will need confirming from the council.

In case the property is of interest to you for either
development or land banking please let me know. I will
email the plans on request.

Kind regards

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989
f. 09 358 4048
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Rock Solid Investment !

Good passive investments are hard to come by. In case you
are look for one then please have a hard look at this one
because it has all the ingredients of an excellent
investment.

This one is a strategically located stand alone building on
the corner of Khyber Pass and Grafton Roads. The building
has huge exposure to passing traffic. The naming rights for
the building are still available and can be leased for
additional income.

The building is fully leased but may have room for an owner
occupier (440m2). There is a cafe on the ground floor
making it very attractive for tenants in the building.

The rents on Khyber Pass Rd are approximately 20% to 40%
cheaper than Newmarket and CBD for similar properties. The
rent correction is long overdue and can result substantial
capital gain.

Some of the salient features of this investment are:

LAND AREA - 1465 m2

TENURE- Freehold

TENANCY DETAILS - To be supplied on request

NET RENT - $495,460

NET LETTABLE AREA - 2207 m2

CAR PARKING - 63

CONSTRUCTION - CONCRETE WITH STEEL/G-IRON ROOF

SALES METHODOLOGY - SALE BY PRIVATE TREATY


The building has been recently refurbished. It is a must
jewel in your portfolio.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Case Study – How A Solicitor Lost Half A Million Dollars For His Client.

This is a true story…….. How a solicitor lost half a million dollars for his client in one deal. This case study holds a very potent lesson for all property investors.

I had investors from Malaysia who wished to purchase a commercial building in Auckland to kick start their property portfolio in New Zealand. I sent them information on couple of buildings and they focused on a standalone building that was fully leased on Khyber Pass Rd close to Newmarket. The property was returning $540,000 net pa and the vendor had listed the property for sale at $6.0m.

The purchasers flew in to inspect the property and were very happy with what they saw. They put in an offer at the asking price and the property went under contract.

There were three tenants in the building. One of the tenants had signed an 'Agreement to lease' and had moved into the building. The Law Society lease was not signed as the principals of this company were based in Australia and some of the minor issues were being ironed out. Solicitors on either side of the ditch were in no hurry even though the tenant had moved into the building some 6 months earlier. More letters exchanged meant more billing hours and everyone seemed happy.

The agreement for sale and purchase stated that the Law Society lease was to be signed and handed over to the purchaser's solicitor by the due diligence date as most outstanding issues were of minor nature and the vendor was confident of getting the lease signed.

The purchaser's solicitor was very thorough and asked the vendor for all possible information on the building. Tons of information, engineering reports etc was supplied on request. The purchaser organized his funding and signed up with a property manager. I was in constant contact supplying all the information and making other necessary arrangements.

The remaining issues with the outstanding lease were successfully ironed out. Letters to the effect were exchanged and all amendments had the approval of the purchaser. The final lease was sent for signatures of the tenant's head office in Australia. Everything looked set for the deal to go unconditional. The purchasers were very happy and informed me of his intentions of going unconditional. I had dollars signs all over me and was mentally busy spending my fat commission check and planning my next holiday. I had worked extremely hard on the deal for 4 months and was happy that it was coming to a successful conclusion.

Then the bomb shell arrived. The vendor had ordered a valuation report before the deal had been signed and it came in at $6.7m. The vendor felt that he could have got more for his property had the valuation come in earlier. I emailed a copy of the valuation to the purchaser and conveyed the vendors anguish. I also warned him that the vendor may like to walk out of the deal if given an opportunity.

4 PM Friday arrived.......sure enough the signed copy of the lease had not come back from Australia. I spoke with the purchaser at 2PM and was informed that they were going unconditional.

I spoke with the vendor at 5 PM and was shocked to learn that the deal had not gone unconditional and that he had received a communication to that effect from the purchaser's solicitor. I had a sinking feeling with all the would be earned $$$ slipping from my pocket. I requested him to send me a copy of the fax. To my amazement it read that the 'Due Diligence condition was not satisfied as a signed copy of the lease had not been sighted.' My hard work of 4 months had gone up in a puff !

I immediately rang up the purchaser's solicitor and was told that how could they advise their client to go unconditional if the copy of the lease had not been sighted by them as per the terms of the agreement. The purchaser sounded equally surprised when I spoke with him moments later but thought that may be his solicitor had acted in their best interest. He assured me that the things will be set right as they were very keen on the property.

The signed copy of the lease arrived the following week. The purchaser wanted to go unconditional. The vendor increased the price to $6.7m. The purchaser increased his offer to $6.3m unconditional. The vendor still did not accept the offer. The property was later sold at over $6.5m.

The purchaser was horrified when he received a bill of $15,000 from the solicitor. He was very upset and wanted to sue the solicitor for resulting loss of over $500,000. Better sense prevailed in the end and the purchaser decided not pursues the matter.

OBSERVATIONS:

A. There appeared to be total lack of communication between the purchaser and his solicitor.

B. The solicitor did a very thorough job during the due diligence and acted sincerely to protect his clients interest. He was however totally oblivious to the business implications of the deal.

C. The purchaser solicitor could have worded the final communication to read 'The Due Diligence clause is satisfied subject to sighting of the lease that was to have been supplied by the vendor as per terms of the agreement.' This could have protected his client’s legal and financial interests.

D. The purchaser was happy and wanted to go ahead with the deal as is evidenced by his unconditional offer at a much higher price. This was not communicated forcefully to the solicitor nor was financial implications of the deal discussed between the two.

LESSONS TO BE LEARNT

In the present case study the solicitor acted extra cautiously. The agreement to lease had been signed. All the minor amendments to the lease agreement were in letter form and had the approval of the purchaser. The tenant, a reputable company, had physically moved in and was paying the rent. There was virtually no risk in going unconditional. The purchaser was keen to buy but did not communicate his decision clearly to his solicitor. This could be due the fact that they were investing for the first time in New Zealand. The vendor was waiting for the purchaser to slip up and as soon as the contract was breached he increased the price.

Property investment is a business. The support team of solicitors, accountants, real estate agents and financial advisor's can give advice but the ultimate decisions of the business rests with the investor. Solicitors and accountants tend to play it safe and are cautious by nature as they do not wish to be held accountable for any wrong advice or slip ups. The investor is an entrepreneur who is required to take bold business decisions after taking into account risks and returns. Once a decision is reached it has to be clearly communicated to the team. The last step is to monitor and follow up so that the deal goes ahead as desired. It always pays to have advisor's who are also property investors and understand the business aspects of the deal.

I hope you enjoyed this case study. I will appreciate if you will post your comments on my blog. In case you have any interesting story to share please let me know I will publish it in my news letter and post it in the blog.

This is a true case study that happened to one of my clients. It is a lesson for all of us to chew and understand.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Welcome To A New Year

Even as I welcome you to a New Year there has been a blood bath
on the stock exchanges around the globe. The stocks have
recovered some what in todays trading but the market is
definitely far from being settled and my feeling is that it will
slip a little further before stabilizing.

The negative sentiment in the financial market will definitely
impact the property market in the short run. This is good news
for professional investors who can now pick up bargains when the
sentiments are down. There has been movement of money away from
stocks into gold......the prices of which have soared. And also
hopefully some part of the capital will flow into the property
market and will keep the property prices stable.

I have played several property board games and Cash Flow 101 by
Robert Kyosaki and each time one message comes clear.......one
has to continue buying assets to grow rich. This is more so when
the property cycle is on down swing. In case you freeze you miss
out as no one can accurately predict the movement of the cycle.
Of course the strategies for buying properties in each part of
the cycle will differ and one has to apply his mind more
judiciously when the market is perceived to be flat.

To kick off the year I have a great property on 597 Great South
Rd, Manukau. This investment property offers an attractive
retail mix and consists of 9 shops on different unit titles. Current
average rental is $315 per m2. This offers room for rent growth
opportunity.

Please email me for the tenancy schedule and study it carefully. There
are some great tenants with long leases to take you over the flat market
period. Most of the tenants are blue chip like GE Money, Hell Pizza,
Burger Fuel to name a few. You can buy the whole lot or individual shops to suit
your budget.

Look forward to hearing from you.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Quality Retail Investment in Mt Eden, Auckland

Quality retail block in a good location are very hard to find.
This opportunity meets all the criteria of an excellent passive
retail investment.


The property comprises a large ground floor showroom unit held
in five separate retail tenancies forming part of a mixed use
commercial development with residential units on level 1. The
address of the property is 66 Mt Eden Rd, Auckland. The beauty of this
property is that it has a huge frontage onto the main road with
very little depth. It also has excellent car parking in front.
This is what retailers look for when renting premises. All the
tenants in the subject property are related to sports activities
and therefore enjoy some synergy.

The rent roll on the property is $353,592.75 pa. The rent is likely to
go up by another $18,429.29 with rent review on Shoe Science later this
month. There is also a rent review next year. The property was
valued last year at $5.2m. I have a copy of this report and will
be made available to a qualified purchaser.

The shops are on unit titles and the vendor is comfortable to
sell them individually. The prices for individual units will from
$750,000 upwards.

If you are looking for a quality retail investment then please
drive past and have a look. There are very few properties that
will match this for quality and location. Please register your
interest so that I can furnish you with additional information.
Look forward to hearing from you.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

If You Like Retail Investment Then Look No Futher

I live on the Te Atatu Peninsula, Auckland and it has under gone an amazing
transformation in the last couple of years. The new residential
developments and the easy access to the city has pushed the
prices in this once sleepy pocket. The interesting part is that
there is very limited commercial land on the peninsula to cater
for the growing demands of the increase in population caused due to
residential expansion. As a result there is huge demand for
retail space and nothing is available.

The retail strip that has come up for sale is a part of new
residential development that has just been completed. It is on
the prominent corner of Te Atatu Rd and Gunners drive directly
opposite the Woolworth. There is no better location from the point
of exposure than this development. Total area of the shops is 551 m2.
The tenant mix has been selected by the developer with great thought
and the leases are 6 to 10 years. The prominent tenants are Harcourts,
Jenny Craig, Eye Zone, United Travel & Chil Body and Hair.

If you like retail investments then this has all the right
ingredients.

The property is being sold by private treaty. Please register
your interest at the earliest.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

A True Blue Chip Investment - Mobile Service Station in the Heart of Auckland

This is a blue chip investment. A brand new Mobil Service
Station with Mobil as the tenant. Salient features are as
follows:

* Blue chip long term tenant
* Excellent location appropriate for the tenant
* High growth area, minutes to the new Highbrook development
and new motorway
* Brand new building with a brand new tenant on a 10 year
lease
* Situated on main arterial route, connecting motorways and
Highbrook to Flat Bush, Dannemora, Howick etc
* Stand alone freehold property on appx 3500 m2 section
* Returning $205,000 pa appx
* Rent reviews every 2 years
* Commence trading – 2nd week of Dec 07
* Copy of draft lease available on request
* Would be an excellent investment at around 6.3% – 6.6%
return on investment
* Address: Mobil, Smales Road, East Tamaki

This is being sold through private treaty so you will need to
react fast.

Look forward to hearing from you.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Retail Investment - Buy One or All

This opportunity is an excellent retail strip at 597 Great South
Road, Manukau. These 9 shops are available for sale separately or
as one lot! Some of the salient features are listed below:

* 9 retail tenancies
* Main Great South Exposure
* Excellent retail mix
* Tenants include Burger Fuel, Hell Pizza, GE Money / GE Finance etc
* New construction
* Long leases
* Separate unit titles
* Generous car parking
* Total returning $ 527,686 pa appx
* Around 7.25% - 7.75% return on investment

Please email me for the tenancy schedule.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

An Outstanding Industrial Investment in the Heart of Penrose

This is a special one so please read carefully.

They say industrial is simplest class of commercial property
investment that offers maximum flexibilty in terms of tenants.
This investment opportunity is located at 20 Fairfax Avenue in
the heart of Penrose which is the most sought after industrial
location in Auckland. The tenant is Nu-Con an engineering
company that has offices in Australia, Singapore, Malaysia,
China & USA and holds a European Office in Ireland. You can read
more about this company by visiting their website
http://www.nucon.com. This property functions as the Head
Office and also has a fully operational manufacturing plant.
Nu-Con have been in these premises since 1966. Their present
lease is till 31st March 2012 with RORs and final expiry in
March 2021. The tenant has recently spent $250,000 to
extensively refurbish and upgrade the property and it will be
reasonable to assume that they have the intentions of being
around for long time.

The rent on the property is $230,000 net pa. The rent reviews
are every 3 years as per the Auckland Law Society Fourth Edition
2002. The next review is in March 2009.

The land is 1877m2 freehold with NLA of 1531m2 which includes
over one third of high quality office space. There are 31 on
site car parks and adequate space for easy container
access/unloading.

This investment has it all.........the right location, an
excellent tenant who has been around for years & has a stake in
staying on, a good lease in place and plenty of dirt to increase
in capital value as the years go by.

The good news does not end here. The vendor will take an offer at
around 8% yield. This is excellent for prime industrial
area like Penrose.

It is undoubtedly one of the most solid investment that our
office has marketed in the last 12 months.

Please let me know of your interest so that I can furnish you
with additional information.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Are You an Optimist or a Pessimist??

The market has changed dramatically during the past four months.
Some of the vendors are getting realistic in selling their properties. For
others it will take a little more time to understand the change.
There is a definite nervousness in the market due to the
sub-prime crisis in the US and related problems in the stock
markets world over. Close to home few financial companies and
developers are feeling the heat. The real estate agents are
also feeling the heat with little or no response to their
advertisements. Auctions and Tenders are not as hot as they used
to be. There is a general feeling of gloom in the market. You can
pick up some great deals if you pitch in at the right price.
There is a saying in the real estate fraternity 'feed the greed'
to make sales. I am definitely not doing a good job at 'feeding
the greed' but I firmly believe that my task is to help my
clients build wealth by giving a realistic picture of the
current market.


Weighed against the problems in the US is the relative stability
in European markets and double digit growth in China and India
that shows no signs of slowing down. New Zealand economy is also
running strong and this is reflected in commercial properties
being more robust as compared to residential property market
which is showing definite signs of slowing down.

For the past fifty years American economy has dominated the
world markets. This is changing rapidly with emergence of new
financial centers and economies. This in fact is a very happy
development for the world economy. America however will continue
to be a very influential force for next few years. Any problems
in their economy will have an indirect affect on our
investments. Economists have been stating that the US has some
very serious problems of large deficits and nation spending more
than it earns. This has been aggravated further by the feather
brained leadership that has engaged America into two very
expensive wars that have dragged on for years with no solution
in sight . Great Britain lost her leadership of the world caused
by financial attrition of the two World Wars. USSR lost its Super
Power status by engaging in an arms race which their economy
could not sustain. Now it seems that the US is heading the same
path. But one must not under estimate the resilience of the
Americans. Whenever there has been a crisis they have risen to
the occasion. Whether it was the great depression or the attack
on Pearl Harbor. To write them off just yet will be a total
error. They have the capacity to turn around and once again
motor the world economy.

You can interpret the world and local economic events as an
optimist or a pessimist. I am an optimist. I think mankind has
enough resilience and resourcefulness to over come any crisis
and grow. Money supply is increasing in leaps and bound as never
before in the history of mankind. This is not because of
agriculture or manufactured goods as in the past. The world
economy will continue to grow exponentially because of the value
addition by the human mind in the intangible fields of software,
computers, entertainment and new forms of intellectual value
additions & efficiencies. It is not the population growth but
the money supply that will determine the property prices. Money
will chase stability and growth. We in New Zealand are
positioned perfectly to take advantage of this phenomenal
growth.

Property cycles are difficult to predict. There is a residential
property cycle that has seasonal fluctuations within the main
cycle. Last year most residential investors in a survey felt
that the property clock was at 2 O'clock. I would believe the
clock has moved further this year and is at 3 O'Clock position.
Things may not look so bad in the coming months due to the
approaching summer and the following election year wherein some
money will get pumped into the economy. There may be yet another
'dead cat bounce'.

The fluctuation in the commercial property cycle is more
difficult to determine as it does not change gears dramatically
because of the commercial leases tend to be long. Our economy is
running strong with historically low unemployment rate. It is the
external events and the media that I believe have psychologically
affected our market. As to how long this negativity will last is
any ones guess. The market fundamentals are strong and in due
course this should turn around the sentiment that is currently
affecting the market.

I have been investing in commercial properties since early
eighties. There was a bull run in India for nearly two decades
(property cycles have a funny way of mocking at our analytical
minds) before they not only came to a grinding halt in 1999 but
nose dived by around 20%. Everyone in my family and friends
thought that I was some kind of a property genius during the
bull run. Even I fooled my self in a similar belief till things
came crashing down. I must confess that I was totally confused
and unprepared when the property prices crashed & the down turn
that lasted for nearly 4 years. I think my real education
started with the hurt the down turn caused me. Before that I was
a dare devil cowboy who rode the property boom. The only good
thing I did in my fool hardy days was that I continued to buy
property. When the market nose dived I froze. I was totally
unprepared for it. Not only did my net worth go down but I lost
some of my tenants that effected my cash flow. To reduce my risk
I sold few of my investments and paid off all the mortgage on my
house. I had plenty of cash but did not buy a single investment
during that period of 4 years. My cash just sat in the bank
earning 7% giving me false sense of security. In mid 2003 the
markets turned around and grew for the next 4 years by 60% to
70% every year. My house that I sold prior to migrating to New
Zealand in April 2003 increased in value by 4 times in 3 years.
Why I am narrating my story is because had not the fear factor
frozen me into inaction during that depressed period I would
have been financially free today. I lacked the knowledge to
invest in the down turn market when the money is really made.

One of the good parts of my job is that I get to interact with
my clients some of whom are multi-millionaires and very
sophisticated in their investment strategies. Inter action with
them has been a great learning experience for me. Some of the
thoughts that I write are results of this interaction. Sharing
these thoughts with you is an enhancement process for both of
us.

Over the last few years I have also had the opportunity to play
various types of property board games to enhance my investment
skills. Each and every time one message comes out clear 'You
have to buy assets to grow rich'. This is specially so when the
markets and sentiments are down. Most people buy on sentiments
rather than market fundamentals. In case you freeze like I did a
great opportunity is lost and it takes years to get that
opportunity again. At present sentiments are down but the market
fundamentals of the New Zealand economy are sound. This is a good
time to hunt for bargains.

There will be hick ups in the world and local economies. This
will run sentiment down and create opportunities. Human species
is extremely clever and always finds ways and means not only to
survive but enhance itself. You have to take one look at history
and evolution of mankind to believe this theory. Please also look
at the property statistics of the past 300 years. The property
growth has survived all down turn in economy, wars & gloomy
predictions. The long term prospects are not only bright but
very very bright. I plan to buy at least two to three properties
before Christmas and will continue to buy into the next year
because I have unflinching faith in the future of mankind. The
wealth in this world because of technology is poised to grow
exponentially in the coming years to levels unsurpassed by
mankind. A large chunk of this wealth will flow into property as
it has done through the ages.

Happy Hunting !!

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz

Likely 10% yield on Mobil Service Station in Rotorua

In this market positively geared properties are almost
impossible to find. You have to either add value, buy vacant
buildings with the hope of tenanting them or make massive
investments to make a property cash flow positive before tax. Here is
an opportunity for you to purchase a petrol station in the heart
of Rotorua at 10% yield with a new 10 year lease. This is a
dream cum true passive investment. Skeptics will say something
is wrong with the property. The wealth creators will definitely
check this out.

Service Station investments are very popular and hard to come
by. We had a couple of them in Auckland last year and they sold
at yields around 6.5%.

We have a Mobile Service Station in Rotorua that is on a prime
main road location and was built only last year. The Service
Station is located on Te Ngae Road being the first service
station leaving the Rotorua CBD via this road. The immediate
area is well regarded for retail and industrial activities.
Situated around the Te Ngae and Tarawera Rd intersection is
Video Easy, Subway, Repco, La Bonne Bakery and Outdoorsman
Headquarters destination retail store. Te Ngae Rd carries a very
high traffic volume which is now in excess of 35,000 vehicles
per day past the subject property and increasing.

The property offered for sale is under three leases - the
Service Station, a cafe and a Rockgas LPG site. The Petrol pump
and Rock gas leases are for 10 years from October 2006 with
final expiry in 2026. The lease to cafe is for an initial period
of 6 years from July 2006 with two right of renewal of 6 years
each. The rent reviews are 2 yearly. The total rent roll is
$202,000 pa.

The land area is 2,052m2 freehold and is on four titles.

The property is being sold by Private Treaty. It is an excellent passive
investment considering it is virtually new, with excellent
tenancies and long leases. Your bank will love it and so should
you. If this property is of interest to please send me an email.

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989 | f. 09 358 4048
PO Box 1798 . Shortland Street . Auckland City
c.kumar@barfoot.co.nz | www.barfoot.co.nz