Also for me, a chance to possibly add something of value about Wanganui….

I first strated going there in the early 80’s, and was always impressed by two things: the vivid house colours (looked like the ends of runs at the paint factory all over the houses) and the number of houses for sale.

Years later I lived at Ohakea, a base for what remains of NZ’s air force. Many of my co-workers lived in towns nearby, some even in Wanganui. IN recent years the base has seen the numbers of its people diminish, as the ‘strike’ force (jets) were disbanded. Bad news for the local economy, I bet. However…..

The air force base in Auckland (Whenuapai) will ineviatably close, and assets reloacte to Ohakea, 30 mins from Wanganui, 15 mins for Marton, Feilding (correct spelling), 20 mins from Palmerston North. The numbers of air force houses for the base are quite limited, and local rentals will be required. With less bases to post personel to/from (every 2 to 3 years), rentals should be more stable, and property prices should rise. Haven’t seen the latest on the Whenapai base closure (though it has been in the news recently), but I’d be surprised if it lasted 10 years, and will probably happen in 5 (or less).

Hope this helps.

Kerry

Maybe I should take my own advice…I have distant family in the region too!

Hi everyone. I’m new here, and the whole IO thing is something I have thought about for a while, but can’t resolve. Bought Steve’s book a few days ago in Melbourne, and read it on the way back to the Middle East.

I’m predominantly looking in the NZ market, where the banks seem quite flexible on the IO thing, dependant on the property (some won’t do them on apartments). The two advantages I see are:

1. Less monthly cash outflow (therefore better chances of positive cashflow), and, depending on your mortgagor,

2. more (apparent) ability to service this or future loans.

The downsides would be that you have to eventually find the principal. This could be offset by being able to buy the property now, have CF+, and sell when the money is required.

Advantages in NZ are no stamp duty and no Cap Gains tax (someone jump in here if I am worng).

Seems like IO might allow me to more easily progress, and maybe do P&I on some, IO on others that might be ‘sellers’ in the future. No Stamp Duty means refinancing with another loan cheaper.

Or have I got it all wrong?

Kerry[]