Hi
I live and work in Auckland city center and want to start property investment soon. As a beginner I don't have much confident, could someone be my mentor please?
Is there any FREE/ good property investment software that can computes offer price of a property with some preset factors like expected rate of return, interest rate, monthly installment amount that can afford etc ? Recently I came across a run down property sitting in between good and well maintained properties with market value between $380K – $500K. How do I know what is the right offer price I should put forward given the fact that currently I can only afford to pay upto $1,500/ mth installment and loan amount is approx $200K? What other factors I should consider please?
And how appropriate is it to use FHOG/ First Home Buyer Loan package to purchase first investment property for someone who doesn't own a property yet?
Many thanks.
I think you'll find you cannot use the FHOG to purchase investment property. Are you looking to buy in NZ or Australia?
With regards to "what is a good price", well, you'd need to work out what the place would be worth renovated. Then you'd need to work out how much it would cost to renovate it. Then if you plan to sell, you'd need to work out what costs are associated with buying, selling, and then buying again (eg stamp duty is a killer in Australia). All things considered, you'd be aiming to make a profit. Remember that your profits will probably be taxed as capital gains tax. You wouldn't bother for a small profit (eg $5k). The risk of you getting your numbers wrong and costs blowing out when you are new to the game is high. It isn't worth the gamble for a small profit like $5k.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM
Thanks for your feedback. Since currently I live and work in Auckland ,so will buy property in Auckland city fringe areas. I plan to buy this as a rental property.. In this case I need to find out the renovation costs to bring it to livable conditions, is there anything else I should look into please?
Cheers
FeiPersonally I can't comment too much, as I don't know much about investing in NZ (this is generally an Australian forum). What I do know is: you can buy property through a company, and I don't think there is the issue of capital gains tax.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Fei wrote:Hi
I live and work in Auckland city center and want to start property investment soon. As a beginner I don't have much confident, could someone be my mentor please?
Is there any FREE/ good property investment software that can computes offer price of a property with some preset factors like expected rate of return, interest rate, monthly installment amount that can afford etc ? Recently I came across a run down property sitting in between good and well maintained properties with market value between $380K – $500K. How do I know what is the right offer price I should put forward given the fact that currently I can only afford to pay upto $1,500/ mth installment and loan amount is approx $200K? What other factors I should consider please?
And how appropriate is it to use FHOG/ First Home Buyer Loan package to purchase first investment property for someone who doesn't own a property yet?
Many thanks.
The only one that does everything you mention is:
http://www.ipropertyco.comHi Fei,
I live in Auckland and have been investing for sometime if you would like any help i would be more than happy to meet with you and give you some help, let me know, cheers
Jason
Hi Jason
Many thanks for your offer to help. Which part of Auckland do you come from? Are you a full time property investor ? What is your email address please so that we can contact each other?
Cheers
Fei
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