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Heres another suggestion to ponder to those others already suggested, why dont you buy an investment property first, ideally something run down that you can negotiate well on and spend some money to get it up to scratch. Then refinance based on the improved valuation after your reno and pull equity to move on to the next one and do the same again.
If you believe in yourself and do this well a couple of times, you could pull out enough to also have a deposit on your own home.
I wouldnt suggest doing this unless you are fully committed to putting some time and effort into building a property portfolio thou, but is just an alternative suggestion that works for some in order to build equity a bit faster.
Positive Cashflow NZ Properties
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[email protected]Have any of you guys looked at whats around in NZ lately? Yes we’ve been thru a massive property boom, but there are still property deals at 10+ plus yield, some even on the asking price!
Agree that you need to negotiate all your prices a lot in this market and making assumptions on asking prices is going to scare anyone away. Im regularly finding properties in NZ at the moment, a lot more in main centres too, that are CF+ from day one based on 100% financing.
Mind you – I dont want too many of you guys buying our property….[suave2]
Positive Cashflow NZ Properties
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[email protected]What motivates me is the opportunity to not have to work for someone else ever again, not by chance, but by choice.
Everyone knows someone who has achieved in a way to allow this choice, which is great because it allows us to see that normal people can achieve this. I think its a matter of constantly believing and telling yourself that you can also achieve that.
Positive Cashflow NZ Properties
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[email protected]I would have to re-iterate the earlier comments about assessing your goals. If you want to build a property portfolio to replace your income, then you need positive cashflow properties. And in my mind if you are committed about doing this then the sooner you sell your vacant land(earning no income) and start buying CF+ properties (earning income) the better!
As it looks, $35k guaranteed cash in the bank versus some POSSIBLE future capital gain that you have no assurance over what might be, is a bit of a no brainer I think. Dont rely on capital gain – it is a bonus.
I suppose you can ask yourself this question – if you held this property for another 2 years and it did not appreciate at all and you paid down an extra say $20k in mortgage payments over this period, woud you be happy with the result or regret it and be disappointed that you waited another 2 years to act? Capital gain is uncertain, your $35K now to get you started with other properties is guaranteed.
Positive Cashflow NZ Properties
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[email protected]In my experience selling your property is all about great marketing. If you can negotiate a lower commission rate but maybe agree to pay for some of the marketing, then this might be a solution.
In any case, if you think your property will sell easily in the current market, make sure you only sign up to the agency for a short time frame rather than the 90 day period that they usually try and pull.
Positive Cashflow NZ Properties
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[email protected]Personally I wouldnt recommend investing in shares unless you know the sharemarket or know the company you are investing in. Would you put your money in a company you knew very little about and had no control whatsover over the strategy or future direction? I wouldn’t. Just like you wouldnt be advised to put this money into investing in a property if you knew nothing about property investment.
I would definitely hold the money for a little while and use some of it to educate yourself a little more about what investment strategy interests you. If property investment gets you going, use it to educate yourself more about property investment. If investing in shares takes your fancy, use some of it to attend a seminar on sharemarket investing. But just dont go investing it blindly and expect a return if you put it into a market that you are not comfortable in.
Just my two cents…
Positive Cashflow NZ Properties
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