one big or two small?

[lewyh]

Just for acedemia, if a joe blogs investor who doesn't want a big portfolio of houses to manage asked you opinion... would you recommend he bought 2 small houses (rented one, lived in the other) or 1 larger one in a nice area to live in and get a renter to take the sting off the mortgage?

[Wayne]

Buy 2 smaller and rent them - rent another to live in.
More deductible costs and renting is cheaper than owning in many towns and cities in NZ.

[lewyh]

But if you buy 1 big you don't have tenant issues

[PTILoveYou]

But with a big one, if one tenant leaves, and you fail to get another in quick enough, you will have zero rent in between vacancies.

At least with 2 rentals, you would have less chance of both properties remaining vacant and zero rent coming in.

[Wayne]

But if you buy 1 big you don't have tenant issues

True - but then you potentially have lodger issues.
You would also need to check out how much, if any, of your costs are deductible.

[elguapo]

True - but then you potentially have lodger issues.
You would also need to check out how much, if any, of your costs are deductible.

Costs are not deductible, but rent isn't taxable up to the prescribed limit.

It's a no-brainer to me, but many don't want to share a house.

[artemis]

Or one property comprising a large and a small unit. Quite common to see apartments now with a single owner, 1 lobby and 2 front doors - one door to a 1 or 2 bedroom unit and one door to a smaller unit which can be rented out or used as home office, spare room, short term stays eg airbnb. Very flexible.