I can see this is a busy forum, so I’m just simply gonna make the most of all this knowledge and know how! If you don’t mind of course???
I’ll be looking to buy my first prop in Wgtn, NZ in a month or so when I return from UK.
I have made about £30k GBP on the property I lived in over here, but have just sold.I can’t make up my mind on what to do first…Buy an IP using 20% dep and rent it out, then perhaps use this property as security to purchase a further property later on? Or Buy to live in and borrow against equity in this prop to buy an IP later on???
Or, should I buy a really cheap prop out of wellington with an 80% dep, or possibly freehold, and then borrow against this prop to buy an IP in wgtn???? Descisions????
If any of this makes any sense whatsoever (i’m not quite up to scratch with the lingo/jargon) any replies or advice greatly appreciated
]Regards,
Hi
It’s quite confusing when you start, which way to go?
The answer is quite simple. Two important factors are going to determine what to do:
Firstly you need to work out your finances, for exhample do you qualify for an owner occupier loan or investment property loan?
Therefore approach a good broker I don’t usually recommend to approach a lender as they usually are in business to give you a loan not to spend time with you and work out the best solutions for YOU.
Secondly once you know what you can borrow and for what purpose, you need to know are you going to make a financial decision or an emotional decision. You see when you buy a home to live in it’s an emotional decision, for investment purposes it’s financial decision.
Usually if your’re short on income and deposit it’s easier to qualify for an investment loan as you’ll have an additional income helping you out. In addion the tax benefits usually also help in meeting your commitments.
With an owner occupier you don’t have the benefit of the above, however you have your own home.
Having said all that you may discover that you can do both. Who knows?
Hope this helps.
M
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