First Timers, What have we done???

[GeePee]

Yes you are correct. The property investor, developer and Chinese buyers dominate the market here. Especially in the well to do or growth areas. No room for first home buyers here unless they go way out. But Auckland first home buyers are different again. Most dont want to start at the bottom like say in Mangere or Massey where they can get there foot in the door, they want their cake and to eat it too....

[Glizzle]

The only way to get a property in Auckland close to neutral or positive is to have multiple incomes on the one section.

If you had a period of 3 months in the Auckland market ATM then yes, maybe you're right. But you have to understand that building up Property could take 50 years, then your comment spread out across that spectrum is false.
My other question would be did you get a independent valuation?

[Wayne]

But Auckland first home buyers are different again. Most dont want to start at the bottom like say in Mangere or Massey where they can get there foot in the door, they want their cake and to eat it too....

Maybe that is the problem rather than all this talk about PIs and Chinese buyers?

[PTILoveYou]

@GeePee

Te Atatu Peninsula has really gone up a lot these past few years. A half section townhouse was offered to us for $350k in 2011, now is selling about $550k..

You have done well with the purchase, with $60k equity gain, that would take 4 years of your -ve cashflow to match anyways.

The risk of long term hold is obviously the -$13k per year. Since you haven't disclosed your income situation and amount of debt in your personal home, I won't comment if it's ok or not come the next recession.

You could look to cash in the subdividable rental in two years when the market peaks, sell to a developer for mega money, then use the proceeds to wait for the recession and buy then.

However, that's pretty speculative, and if your financial situation, especially your income is high, keep this subdividable rental and perhaps buy more cashflow properties later.

[Wayne]

in two years when the market peaks

nice prediction and said like a fact.

[PTILoveYou]

nice prediction and said like a fact.

Predictions are never accurate.

[Glizzle]

Predictions are never accurate.

Im not sure, every thing on Star Trek seems to be coming to fruition.

[Wayne]

Beam me up Scotty - this thread is diverging.

[Leftette]

Spocken like a true gentleman.

It annoys me when threads go off-topic. Can't we Klingon to the original subject?

[Glizzle]

It annoys me when threads go off-topic.

Doesn't phase me bro

[Leftette]

That comment needs to be Kirk'd into touch. You've Shatner'd my dreams, Glizzle.

[Bluekiwi]

Reno it cosmetically for a tenant.
But have a go at selling it and see if you can realise 50k.

As the RV that was done, could be 60k higher again after spending 20k on it.

Then you gonna have to fess up to the IRD and tell them that you need to pay them some tax.
Unless you have documented evidence your intention was to buy a rental your gonna pay it at some time.

Do another 1 or 2 and make a bit more dosh, then cancel all trading and use the new funds to get a rental in a higher yield area, that now the rent is going to pay the bills, as you have a lot higher equity.

Thats another way to exit the potential problem you have.

[Wayne]

After doing a bit of trading like that how do you prove to the IRD that you aren't doing (going to do) it some more?

[Bluekiwi]

After doing a bit of trading like that how do you prove to the IRD that you aren't doing (going to do) it some more?

You get tainted when you buy a rental while you are actively engaged in the business of property trading.
But to make it easie for yourself you would close the trading entity down, cancel your gst registration, make a trust resolution etc.

A good property accountant or solicitor will help you.

You can always start up trading again in a few years time.

[Keys]

We have family who will be our first tenants and it has been agreed that they will pay $450 p/w. They are very reliable.

So many missed this risk factor.