I’m brand new to this board, having only found it today during a search. Lots of good stuff here.
I have a dual occupancy property in Canberra which is currently rented and managed (8% commisssion) through a property agent as I’m working O/S on a 1 year contract.
The income is covering the mortgage, tax, rates, maintenance and ins. etc, with a couple of thousand left over per year, according to my mathematics.
My questions are:
1. Am I missing something as far as getting the best return on this property? It is a 2 bdrm + a 1 bdrm with seperate leases. Sorry if there isn’t enough info here as I don’t really know what other info would be helpful. It’s not completely dedicated as an investment property as I lived in the 1 bdrm part for a year or so before coming here.
2. I want to use the equity (approx. $200,000) to buy one or two cheap investment properties in N.Z. Is this legally possible? What info do I need to read up on, and where can I get hold of it? I love N.Z and believe it would be a good place to buy.
3. If I’m applying for this type of loan, do I need to be currently employed to qualify? Or is the main requirement that the property will carry itself?I’m returning to Oz in May and should have a small bundle of readies to finance myself and a trip to N.Z as well as tidying up, fixing or painting any property that I manage to find.
Please excuse my naivety here regarding my plans, and feel free to criticise them with respect to any obvious flaws that you can see.
Thanks for your forum and I hope to be a regular contributor and user.
Ben.
Hi Ben,
Thanks for your post and welcome to the forum!
1. Am I missing something as far as getting the best return on this property? It is a 2 bdrm + a 1 bdrm with seperate leases. Sorry if there isn’t enough info here as I don’t really know what other info would be helpful. It’s not completely dedicated as an investment property as I lived in the 1 bdrm part for a year or so before coming here.[/quoteI think that the numbers need to speak for themselves. If you are not getting the kind of return you desire (note: most people don’t ever set a required return!), then you need to take action, with the ultimate action being to sell the property and invest elsewhere.
2. I want to use the equity (approx. $200,000) to buy one or two cheap investment properties in N.Z. Is this legally possible? What info do I need to read up on, and where can I get hold of it? I love N.Z and believe it would be a good place to buy.Yep – it is legally possible, but the laws are complex. In a nutshell, to aim a tax deduction in Oz for the interest you also have to bring to account the income too.
There are some creative ways around this, such as onlending the money to another entity and charging interest, and the second entity invests in NZ…
Be wary about investing OS though… the returns may be better but there are also more risk too.
Quote:3. If I’m applying for this type of loan, do I need to be currently employed to qualify? Or is the main requirement that the property will carry itself?Hard to say… you could do a low-doc loan at say 70% on valuation, but it would be a lot easier and smoother if you could prove your income (ie. have a job).
Hope this has helped!
Merry Xmas,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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