Objective is a big $ sign on retirement

Cash flow is admirable but recent years have seen capital gain just going for it making the cash flow positive properties almost impossible. Surely the objective is to carefully build a huge dollar sum so that on retirement you have choices. Choices to sell down and freehold sufficient to create a taxable income with the balance looking after themselves but still growing. Or choices to sell down and buy more properties in lesser suburbs where the equation gives more rent for your capital.

My method over the years has been to make each property stand on its own two feet from day one but only as follows. Rates and insurance come out and the balance of the rent goes to the table mortgage. As the mortgage decreases I treat it like a machine falling off the pace and bang it back up to the amount that was being serviced by the rent and away we go again with a deposit for the next house. The more homes you have doing this the quicker the next home arrives. Some may see this as too slow but I juggle the figures and make the term of the mortgage as short as possible around 12 to 14 years versus the capital I need. So my deposit is from putting other mortgages back to where they were being comfortably serviced and each new tenant pays off the new loan top up.

That?s my opening salvo as a new member. Can’t get enough of the motivational books. No land tax or capital gains in NZ helps and must decrease the superannuation burden going forward if more are encouraged to look after themselves.