A former millionaire property guru who once lived in a waterfront home in the plush Auckland suburb of Herne Bay has also been living in a tent in Dunedin’s Octagon.

“I know we are making a difference. This is my new occupation,” Kieran Trass told the Otago Daily Times from near his makeshift residence of the past few weeks.

The 49-year-old says he is down to “the last of my resources” and detached from his previous life as a banking and property high-flyer.

He has worked at Nathan Finance, UDC and CitiBank in mortgage lending and corporate banking. He set up a dozen start-up companies, including the property consultancy Hybrid Group, an online mortgage brokers, a property trading company, a building company, and a legal practice.

He published five books on the topic, including Grow Rich with the Property Cycle and The Housing Bubble.

In 2007, “before the world turned”, he increased his exposure to property, and with his businesses shrinking lost hundreds of thousands of dollars, and “I haven’t recovered”.

Read it here:

http://www.odt.co.nz/news/dunedin/186222/property-guru-protester?page=0%2C0

There is continuing evidence of enthusiastic  support for commercial property “syndication”. There are various types of syndication. Proportionate title is but one. Others include, units, company shares, partnerships, and syndicates proper etc. In general the goals are all the same : The coming together of a group of people for a common purpose- and in these cases  investment in commercial property.

“Published 1 December 2011

Colliers International has sold down an $8.65 million proportionate title offering on behalf of Cheryl Macaulay’s Commercial Investment Properties Ltd in less than 3 weeks.

The company offered 173 units of $50,000 each in Unitec Institute of Technology’s North Shore campus at Albany.

Colliers has also sold a Henderson retail property pre-auction and achieved a number of leases in the past fortnight.

Sales

Albany, 10 Rothwell Avenue, Unitec Institute of Technology North Shore campus, on behalf of Commercial Investment Properties Ltd (Cheryl Macaulay), 173 proportionate title units of $50,000 each sold out in 3 weeks for a total $8.65 million, offering projected 10% pretax cash returns/year with built-in rental growth of CPI + 2% (Tim Lichtenstein & Charlie Oscroft)

Henderson, 111 Lincoln Rd, 1139m² retail unit leased to Warehouse Stationery, sold to a private offshore investor before auction for $2.25 million at a 7% yield (Shoneet Chand & Deborah Dowling)

Leases

Newmarket, 5-7 Kingdon St, Bupa House, level 2, 340m², new 6-year lease to Soft Solutions Ltd (Chris Palmer)

Newmarket, 23 Davis Crescent, level 1, 530m² leased to Plumbline Ltd on behalf of NZPM Group Ltd (ex-NZ Plumbers’ Merchants Ltd) (Matt Lamb)

Ponsonby, 230 Ponsonby Rd, 930m² on behalf of a family trust to Flying Fish NZ Ltd (Matt Lamb & Sam Gallaugher)
East Tamaki, 2-8 Jarvis Way, 25,947m² of industrial space was leased by CV Jarvis Ltd to RoyalWolf Trading NZ Ltd on a 10-year l term (Dwayne Warby & Paul Jarvie)”

Source: Bob Dey Report

Property Guru declares himself bankrupt

GREG NINNESS

“www.stuff.co.nz”

29/11/2011

‘Self-styled property guru and investment adviser Dean Letfus has declared himself bankrupt after the collapse of his business and property investment empire.

Letfus set up Massive Action Ltd and NZ Property Gurus Ltd, both of which have been put into liquidation, with little likelihood that their creditors will be paid.

Massive Action charged people $1500 to attend seminars where Letfus would share his money-making secrets, such as: How to enjoy the capital gains on 10 or 20 or 50 houses that you haven’t paid for; and how to get in and out of money-making deals with no money.”

Read the rest here:

http://www.stuff.co.nz/business/money/6051241/Property-guru-told-to-go-bankrupt

I have always said that low grade properties are not a good investment. Readers of my column will have noted that I repeatedly advised that it was better to buy in “leafy suburbs” as values hold up better rather than the poorer areas.  The story below shows that even the best in the game still need reminding.   To buy and resell quickly  for a profit in poorer areas may be a different exercise but to buy and hold just because the rent is  smidgen better is, in my view, very short sighted.  Excessive repairs, and defaulting tenants can decimate notional returns.

It is also notable that prices achieved were up to 40% lower than the CV’s which goes to show how important it is to thoroughly learn how the market really works before jumping in .

NZ Herald 1.12.11

A portfolio of properties previously owned by self-proclaimed real estate mogul Don Ha has sold at mortgagee auction.

The portfolio of nine south Auckland houses, accumulated over several years by then investor and property mentor, sold today for a total of $1.97 million.

Mr Ha said he thought some of the selling prices were “a bit under value” but it was a good result.

“I think that’s what the market wants to pay. I think the outcome is good for both parties and I’m happy I don’t owe money now,” he said.

The portfolio included seven 2-4 bedroom houses and two 10-bedroom boarding houses.

Bayleys said the auction represented “one of the city’s biggest residential portfolios to be brought to the market in recent years”.

A 10-bedroom brick and tile house in Manurewa sold for the highest price at $382,000

Others sold at the auction included
MANUREWA, 16 Rehua Place   $368,000  (CV $430,000)

GOODWOOD HEIGHTS, 6A  Flamingo Court $235,000 (CV  $370,000)

PUKEKOHE, 14 Kennelly Place $165,000  (CV $235,000)

PUKEKOHE, 40 Birdwood Road $151,000 (CV $260,000)

PUKEKOHE, 22 Birdwood Road $137,000 (CV $240,000)

PAPAKURA, 23 Redcrest Avenue $151,000 (CV $250,000)

PAPAKURA, 2 Belgrave Place  $195,000 (CV $260,000)
Read the rest here:

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10769977