Investors fear the worst for New Zealand development

[PN]

These cases not just boleh in Malaysia. NZ developer also can run road.
Be aware if you plan to invest oversea.

By Andrew Batt:
Property investors from Singapore, Jakarta and Kuala Lumpur are said to be “in the dark” about the progress of a New Zealand housing development which was showcased in Southeast Asia during 2011.

The National Business Review (NBR) has reported that progress on the Albany Heights Villas project (pictured) in Auckland has stalled, and that the developer cannot be contacted.

The New Zealand publication reported that as many as 100 investors from Asia could have bought into the first phase of the development.

Construction has yet to commence, the project’s website is down and no one was present at the sales office when enquiries were made, according to NBR.

"We all fear that the worst has happened,” said one Asian investor who contacted the New Zealand media seeking information.

Online forum postings suggest that investors may have paid deposits of up to 20 percent of the total purchase price – equal to S$65,000 – although planning consent had not been granted.

Have you invested in Albany Heights Villas in Auckland? We’re keen to hear from you. Email [email protected]

[roly8]

what is the leasehold in NZ?

[auroraborealis]

How best to check credibility of overseas developer? Worst case is when advertised development is still empty plot of land with no amenities nearby; but of course these type are the cheapest

[auroraborealis]

-double post-

[PN]

Several things to note when investing in oversea property. This varies from one country to another country. In fact this is similar to what you need to know when buying SG properties.

1. Find out if foreigners can buy. If can what are the criteria? Example: Must foreigner be working there for minimum x number of years?
2. Bank interest rate if you need to take up a bank loan.
3. What are the taxes involved. Stamp duties, Seller Stamp Duties, Properties tax, Capital Gain Tax, etc.
4. Are you allow to buy resales or must buy from developers only. This will also affect you when you sell as you can only sell to local. Australia is one example.
5. Is the developer a reputable one or a small developer still struggling for survival?
6. Location of the properties. Is it true that it is in a good prime location as advertised?
7. What is the property transacted price in the same area. You don't want to be a carrot head just listening blindly to the agent advertising the property. Who knows if you buy directly from the developer there it's much cheaper than what the agent quoted you.
8. How is the rental market there since you'll be buying it as investment & most probably you'll need to rent it out. What are the fees involved to maintain the property?
9. What is the current state of that country property market?
10. What are the cooling measures already in place in that country (if any)

You can get some of these information by googling the Internet. But the safest is to to check with someone you know who are residing or familiar with that country property market. If you have relatives or friends there even better. Ask them for advise & help. They may know something which the agent will not tell you.

The best advises will usually come from your relatives or friends living in that country. Their words are more trust worthy than what the agent will tell you.

If you can't find much information & only the agent can give you one sided information, better do more home work. You may try by posting in this forum & hope some kind hearted bro can advise.

Lastly don't forget to fly down and see the location and environment with your own eyes. Treat this as a holiday + investment trip.

If still feel uncomfortable after some research, DON'T BUY.

[PN]

Saw this post in CNA forum. Think it's good to share here.
Don't gong gong agent tell you buy you tio gongtau & listen to him.

FOC overseas property talk make me $6k poorer

Attended foc overseas property talk by David Yuen "How to own 100 properties" with a fren on 13 Oct. Never interested in such talk but accompanied fren anyway. After talk went to next room and saw a small gathering. Agent's boss and agent quickly invited us to sit while we we looking at the model by local developer Chip Eng Seng in CBD Melbourne. Next minute fren said she wants a unit. Agent's boss asked me also get 1 unit but I said I want to think first and he scare us saying if I think first tmr no more . Stupidly, I said Ok and AFTER swiping our credit cards and AFTER signing SA then the agent said the $6k booking fee/handling fee is non-refundable. While signing heard an ang moh telling agent MUST HAVE A WITNESS. (i.e the agent's boss also signed as a witness) Ang Mo DID NOT SAY make sure we been told of non-refundable clause. Agent rang me up on the next working day to ensure I go sign S & P Agreement quickly. Meanwhile I check with local banks n realise they do not loan for overseas property and that my unit is also under 500 sq ft. Capital gains tax of 28% and 3% agents commision, etc will be levied. I then decided to cancel my booking as agent did not tell me of non-refundable clause BEFORE payment and BEFORE signing. They refused. Anybody out there can help me as to how can I make them refund my booking fee. Is there a window period for refund. Please advise. Thanks.

[roly8]

research carefully...
don't buy because of peer pressure

[Lovelle]

is it possible to call bank to void the credit card payment ?

[auroraborealis]

Better seek legal advise or go to CASE (cheaper)

[DC33_2008]

The clause of non-refundable deposit should be stated clearly in the form when you signed and placed the deposit. Cooling period should apply.

[Secretariat]

Wah piang, what was the buyer thinking?

[Secretariat]

The clause of non-refundable deposit should be stated clearly in the form when you signed and placed the deposit. Cooling period should apply.

I think that the time given between the OTP and SP is the cooling period, so at least $6,000 gonna.

[DC33_2008]

Most of the overseas project, developer will be quite fair if buyer shows proof that cannot get mortgage loan will get back deposit with no penalty. Hence, very skeptical with all these talks related properties.

I think that the time given between the OTP and SP is the cooling period, so at least $6,000 gonna.