Product Reviews

[Book] I Buy Houses: The Property Investor's Handbook

Despite what most people will tell you, there is a right time and a wrong time to buy real estate – and timing could mean the difference between getting a good return and losing your home. Experienced and successful investor Paul Do shares the secrets of his success in a way that will allow all readers to benefit from the upcoming property boom times.

Monday, February 16th 2009

Reviewed on behalf of Good Returns Bookstore by Graeme Fowler

I Buy HousesThis book is written from an Australian focus, but can also be applied in many ways to the New Zealand property investment market. Paul Do is the author and has been investing in property as well as the share-market for almost 20 years. He starts off by discussing the advantages and disadvantages of property which includes leverage, security and adding value.

He talks a lot about apartments vs houses as well as capital cities vs the regional areas, and has a lot of information on past growth areas for anyone that is interested in knowing that. Again it is based on the Australian property market, although it would seem that our market overall in New Zealand would have followed fairly closely.

The author has a substantial background in pricing and financial analysis which becomes even more apparent when it comes to using the SYSTEM T formula he has designed. For those readers that are interested in formulas and technical analysis, this will be excellent reading.

His formula goes like this: –
Proceeds = s (chance of success) x m (how much it is geared) x e (initial equity) x [1 + y (average net yield) x (1 – t (tax rate)]x T (years) – Total Interest Cost. If you can work that out, you’re a lot smarter than I ever will be. He does explain this in more detail, but I must admit that is was a wee bit beyond me.

Paul then goes on to explain more about research, the 80/20 principle which he says to spend 80% of the time researching and only 20% of the time looking at properties. He uses a lot of analysis to work out when a good time to buy is using a ‘buying zone’ graph and then goes on to discuss real estate agents, auctions, doing inspections, types of valuations, negotiations, conveyancing and a few other tips for the beginning investor. Lastly he has chapters on property management, development and selling, selling he advises against if at all possible.

In summary, this book will have some value to new investors, as well as the experienced ones, and the bulk of the information in the book can be applied to the NZ market as well.
3 ½ stars

To order your own copy please visit Good Returns Bookstore or click here

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.