Hi All
I am in the process of buying a property in Wanganui New Zealand, actually it belongs to my parents, they have suggested a price of $40.000 nz dollars, property needs a bit of work done on it ie: new roof, I will rent it back from them for $100 nz dollars a week, I will be utilising the equity I have in my own property to fund this investment, can anyone please tell me what my next step should be and what they think of this investment.
Steve
Compare the prices to local prices Steve and see if it is a good deal. Check out roofing costs, etc. The rent sounds cheap but that is up to you. I always keep things with family atmarket rates then there can be no problems or issues. Then again I have never rented a house to family only done some deals with them. On the face of it though some of the prices in wanganui seem much dearer than what you are paying so it might be a good deal. Just make sure it is all doen legally, etc. Don’t want it to come back and bite you.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Steve,
The eleven second rule applies to this investment.
You know the tennants – good ol Mum and Dad.
Your next step should maybe get a valuation done on your new IP – get a line of credit on this, providing you have paid under market value – you are already in front as to providing youself with more equity to purchase another PI.
Well done.
Schutzy[8D]HI
Thanks for that great feedback when you say a line of credit what do you mean
Steve
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