Hi All,
My partner and I purchased our first rental property a few weeks ago in West Auckland. We managed to secure the property $60k under its value.
It is on a full section, so is sub dividable and the house is located at the front allowing for this. The house is sound and livable but needs to be brought in to the 21st century at some stage.
The house is rentable in its current state and rental prices in the area are for between $420 - 460 p/w. Needless to say, as in most Auckland rental properties, we will be 'topping up' this investment quite a fair bit. We estimate approx $1500 per month taking in to account rates, insurances, maintenance etc and receiving $450 p/w in rental income.
We are able to sustain this 'top up' on the current fixed rates but things will be tight.
My question is simple. Have we made a sound investment? Obviously we are running this property at a loss and even after tax write offs etc we estimate we will be putting in around $13k annually.
I wonder if we have made the write decision? Have we invested in the wrong market(Auckland that is)???
PS Sorry if I sound a tad 'Green' as this is our first foray in to the property investment(besides our own home of course)
Nervous Greenies
My partner and I purchased our first rental property a few weeks ago in West Auckland. We managed to secure the property $60k under its value.
It is on a full section, so is sub dividable and the house is located at the front allowing for this. The house is sound and livable but needs to be brought in to the 21st century at some stage.
The house is rentable in its current state and rental prices in the area are for between $420 - 460 p/w. Needless to say, as in most Auckland rental properties, we will be 'topping up' this investment quite a fair bit. We estimate approx $1500 per month taking in to account rates, insurances, maintenance etc and receiving $450 p/w in rental income.
We are able to sustain this 'top up' on the current fixed rates but things will be tight.
My question is simple. Have we made a sound investment? Obviously we are running this property at a loss and even after tax write offs etc we estimate we will be putting in around $13k annually.
I wonder if we have made the write decision? Have we invested in the wrong market(Auckland that is)???
PS Sorry if I sound a tad 'Green' as this is our first foray in to the property investment(besides our own home of course)
Nervous Greenies
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