Stream of consciousness and other personal thoughts garnered throughout the week and which will be added to as the week rolls on. These thoughts are unrefined, unquantified, unverified, and raw. Any of these may be either be edited, deleted or otherwise spawn out into its own separate post particularly if new information comes to light…

• Upward pressure on House prices in Hamilton. Thought seriously about buying in Hamilton and have been looking around with the serious intention to buy, but can’t make the cash flow work in a way that is acceptable me. It needs to be at least cash flow neutral with a 50% deposit and with all ongoing costs factored in (council rates, insurance, maintenance), many just aren’t except old houses which frankly the majority I’ve seen need a lot of work to meet Healthy Home compliance along with preventative maintenance.

• From a personal conscience perspective, I still believe houses should be regarded as a place to live in, not as financial instruments of speculation. Talked to politicians in the lead up to the last election to express my concerns and the obvious damage it was inflicting on Society, but frankly was met with apathy, especially from the National Party candidates. Came away with the vibe that investing in houses is to be rewarded and encouraged (hence what I’m doing, although have concerns about it morally)

• If you’re intending to profit primary from capital gain (as oppose to eventually deriving an income from rent), isn’t it technically a taxable activity, regardless of how long you’ve held on to it?.

• A lick of paint and new cabinetry isn’t necessary going to prompt me to buy a place. I need to find out if the stuff in the walls is in good nick (does it need rewiring, re-plumbing?). Also, frankly, can see a lot of houses, particularly the older 1940s-1950s dwellings with clay tiles in Hamilton will need to have their roofs replaced. Also, the detailing of these ex-state houses of the era with a gable end I feel is a water ingress hazard.

• I’m also concerned about the quality of tenants a place will likely to attract. I sense I’m not going to get the same long term company exec type families as I can with Rolleston / Christchurch given the age of Hamilton properties.

• End up pilot buying shares in a morally questionable company that specializes in sending out inflated parking breach notices by way of remote video enforcement (ASX:SPZ). From a personal conscience POV, I would like to see the company crash and burn, and in fact had written to the Commerce Commission to express my concerns. But from a cold analytical business perspective, given the lack consumer watchdog teeth in many jurisdictions and the public apathy I’ve seen around the place, feel and fear these companies are going to thrive.

 

 

Older Stream of Consciousness thoughts can be found here.