Good Evening,
First off - I've been googling for property/section info and came across this forum, so I signed up to write this thread and seek advice. I hope this is the right place and I hope I'm posting in the right section! (my apologies if not...)
My story:
I live with my Wife in a 3 bedroom rental house in a suburb in the greater Wellington region. I was fortunate enough to grow up with parents who have their own rental business, and the house I am living in is owned by them.
The plan always was to buy the house off them at a figure that was profitable to their business, but easy enough for a young couple to afford (with the help of KiwiSaver). 6 years later, a holiday around the world and a Wedding paid for; needless to say we are not very close to purchasing any house (we both have KiwiSaver but mine is relatively new. I haven't been with KiwiSaver for more than 3 years).
I've enquired with banks and provided them our full financial situation to see where we stand (and what we would need to do) - unfortunately not one bank has managed to come back to me with any sort of response (good or bad).
Recently, our story has changed completely. One night after having dinner with our neighbours, we got talking about the idea of living out in a rural area. This is something that my Wife and I have always wanted to do (long term). Our neighbours are very close friends (family-like) and share the same lifestyle dreams we do. We both love animals, own animals, and love the idea of low maintenance farm animals with big sections away from the city.
After researching the cost of such sections, in an area we are keen on living in, the reality is everything looks very possible for both parties. But before venturing down a path that may not be an ideal situation, we want to get as much advice, information, and input as we can.
Questions like the following are the types of things we want to learn/get answered:
- What are your personal thoughts on investing in land/property with friends?
- Is it wise (financially and non-financially) to go into partnership with others?
- Hypothetically, all going well, if we were approved to buy a section together, what things should we be looking out for?
- Our intention is to buy a section and subdivide so we each owned half
Basically, in a nutshell, our dream is to live in a section each next to each other, to continue as neighbours because our relationship is rock solid. We both want large sections (the sections we are looking at are about 4 hectares in total and we would subdivide into 2 hectares each). Our neighbours want pigs/goats/chickens/dogs/cats etc. We want to breed dogs and have other types of animals. We want to live in an area where all other neighbours are far away.
I'm open to any feedback, good or bad. Any constructive criticism is openly welcomed.
Thanks,
Nick
First off - I've been googling for property/section info and came across this forum, so I signed up to write this thread and seek advice. I hope this is the right place and I hope I'm posting in the right section! (my apologies if not...)
My story:
I live with my Wife in a 3 bedroom rental house in a suburb in the greater Wellington region. I was fortunate enough to grow up with parents who have their own rental business, and the house I am living in is owned by them.
The plan always was to buy the house off them at a figure that was profitable to their business, but easy enough for a young couple to afford (with the help of KiwiSaver). 6 years later, a holiday around the world and a Wedding paid for; needless to say we are not very close to purchasing any house (we both have KiwiSaver but mine is relatively new. I haven't been with KiwiSaver for more than 3 years).
I've enquired with banks and provided them our full financial situation to see where we stand (and what we would need to do) - unfortunately not one bank has managed to come back to me with any sort of response (good or bad).
Recently, our story has changed completely. One night after having dinner with our neighbours, we got talking about the idea of living out in a rural area. This is something that my Wife and I have always wanted to do (long term). Our neighbours are very close friends (family-like) and share the same lifestyle dreams we do. We both love animals, own animals, and love the idea of low maintenance farm animals with big sections away from the city.
After researching the cost of such sections, in an area we are keen on living in, the reality is everything looks very possible for both parties. But before venturing down a path that may not be an ideal situation, we want to get as much advice, information, and input as we can.
Questions like the following are the types of things we want to learn/get answered:
- What are your personal thoughts on investing in land/property with friends?
- Is it wise (financially and non-financially) to go into partnership with others?
- Hypothetically, all going well, if we were approved to buy a section together, what things should we be looking out for?
- Our intention is to buy a section and subdivide so we each owned half
- Should we be doing it this way? Or should we be looking at buying two separate sections side by side? (we want to continue as neighbours)
- Because of financial reasons, we would both be looking at building small/cheap houses to live in temporarily, whilst saving the money to build our dream houses on our land
- Is this wise? Or should we look at buying kit set houses that we can drop onto the property instead? Or sections with houses already on them?
- Where should we go for sound financial advice (other than Banks, who don't seem to offer any advice unless they are confident you can afford it)
- Where should we go for sound legal advice? What sort of legal advice would we need?
- Is there anything else we need to be well aware of before starting to investigate further down this path?
One other question
- Is this a ridiculous idea and should I be concentrating on buying the house I am living in for my first property? Keep in mind I eventually want to start my own rental business like my parents, and buy more properties to rent out in the future. Also note, our neighbours own their house. They are not renting. I see this is them being one step ahead and would likely be able to afford more than us at this point in time.
- Where should we go for sound legal advice? What sort of legal advice would we need?
- Is there anything else we need to be well aware of before starting to investigate further down this path?
One other question
- Is this a ridiculous idea and should I be concentrating on buying the house I am living in for my first property? Keep in mind I eventually want to start my own rental business like my parents, and buy more properties to rent out in the future. Also note, our neighbours own their house. They are not renting. I see this is them being one step ahead and would likely be able to afford more than us at this point in time.
Basically, in a nutshell, our dream is to live in a section each next to each other, to continue as neighbours because our relationship is rock solid. We both want large sections (the sections we are looking at are about 4 hectares in total and we would subdivide into 2 hectares each). Our neighbours want pigs/goats/chickens/dogs/cats etc. We want to breed dogs and have other types of animals. We want to live in an area where all other neighbours are far away.
I'm open to any feedback, good or bad. Any constructive criticism is openly welcomed.
Thanks,
Nick
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