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Watch funding costs carefully and make sure you know the exact point at which your funding costs will make the property neutral. Offset. Non Deductible debt first but here is the MOST important thing. Put your extra cash somewhere you can get it back if you need it. Eg if you pay out your car loan that cash is gone. Think cashflow casflow cashflow in your portfolio. Keep in charge of who and how your cash is managed.
Nothing wrong with a regional area as there are many regional areas that will very much outpace sydney in terms of capital growth in the next 5 to 10 years.
However, if you are expecting 2% you would really have to question that location. If your goal is to create sufficient equity to be able to finance a PPOR then trapping your gains inside super will not help in this instance.
I can see a very simple solution for you.
Buy an investment property that you can easily service through rent plus a doable contribution from yourself. Don't stretch yourself.
However the property needs to have value add potential either through a reno, simple subdivision or other technique.
If you can create value in the property and repeat the process in other properties then you will be well on your way to buying your own house with a loan that you can service and sleep at night. Plus you will over the years gain valuable skills in the property field.
That is a hard one without knowing more information or the DCP LEP for your area. Gut answer looking at the picture is no. Your council will have a formula that amoung other things will set a min width based on the use and density of dwelling you intend to get approved for the site.
The good news is just drop in to the council and ask to speak to the duty planner. With any luck they will guide you through the process.
I have also used EBM. Have made claims and they were okay.
There is one thing to note with these policies though.
Have a close look at how an "incident" is defined under your policy. If for example your nice tenant decides to trash your house in a huge rage one night and punch holes in all your walls and basically destroy your place then that would be one "incident" and one incident equals one excess. eg $500.
If the nice tenant punches a hole in the wall once a week for 5 weeks you could end up in a situation where 5 excesses are payable. Got to have a really close look at your policy. Will also have a lot to do with the info you get from your PM.
As a mortgage broker on the central coast we can provide a face to face service there if needed or in the NSW Hunter Valley. However, as mentioned we would not be limited to those locations for clients that are happy to work over the phone and net.
Recruit 2, I can see this is an older post now that I have just read the whole thread but I am curious if you were able to find a 220k property in Branxton as that seems low given average price. Would have been good buying – there would be a chunk of equity in the new property if your plan came off.
The investment property I'm looking at buying is in the region of $150 000.
Robbie are you looking to purchase in a regional area. At $150,000 I am curious where you are going to invest. From just a due diligence point of view it may be wise to do a bit more digging around into the location of your investment if you have only been here for just over a month.
Gavross – if you are buying from OZ at the moment I am told that you will need to put in a 30% deposit on investment property purchases in NZ. There were a few NZ brokers on this forum years ago but I don't know if any stop by now.
Also, one tip I have found extremely valuable over the years is to compare the rents on offer to market rents. NZ is great for free stats so you will easily be able to find statistics for market rents for lower to upper quartile rents published.
Fixed rates are down again and finance is available in mid to high 5's at the moment. There has been a lot of discussion about an irregular raising of fixed term rates recently which has prompted a release from the NZ reserve bank questioning the banks motives on raising fixed rate ie they are out of step with the actual cost of funds and the bank are acting to the detriment of the NZ economy. The heard thinking has followed the banks and they are taking the higher long term rates hook and sinker but if you are willing to chance your hand there will be even cheaper rates out there in a matter of weeks! Or will there?
The phrase now is "don't wait for the book" about investing in cashflow because by then it is too late!
Get on a plane guys and head to NZ. Have a holiday and scout out your next purchase.
Time does great things, those yields are available in Auckland right now but you need to be particular with your areas when you are looking for positive cashflow property in New Zealand. It is always a good idea to fly over and visit the area that you are investing in so that when an property comes up you are that much further ahead of the crowd.
Mr Shannon said he had more than 100 lower-quality homes listed in the Detroit metro area for sale for just $US1.
It is interesting that a journalist with make a comment like that without explaining the complex issues behind these properties. Is it unusual to place a hyperlink to the businesses site in the articile for online newspapers or is that just common practice.
I have recently changed my opinion on the topic of seminars after meeting people who have been put on the property path after doing some seminars. They never would have found success in property investing so for them it was great.
Family Trust would be okay for basic buy and hold purchases. Steve – if you are buying and selling you would have to be very careful about tainting with a family trust (assuming that everything is done in the same one) .
Anthony – if you duck over to the nz forum propertytalk and ask the same question there are a few expert lawyers and accountants that post on a regular basis that will help.
Probably of equal importance is that you clearly document your intentions when purchasing as to the purpose of your investment.
Property Trading ie the buying and selling of property for gain is taxable in NZ. You must pay (account for) GST and also pay tax on the profits.
There is a need to structure yourself so that you can keep your "hold" investments separate from "trading" investments. Trading is trading and investing is investing – just make sure that you keep the two separate.
