My situation is that I am in a position to buy my first investment property, and sooner the better really.
Due to my deposit of around $20k (and about $150k equity in my own home), if I buy a property around my home town - Napier and Hastings - the mortgage required will be too high to give the property a positive income. If I'm lucky it may just sustain itself.
I started looking at places such as Wairoa, Waipukurau and Dannevirk? where according to the property press I can make $30 - $50 per week profit as the house prices are lower and I wont have a very high mortgage (thats going by the rents stated in the property press - I read in another post that they may not be accurate?). However these places surely wouldn't have the same capital gains as Napeir or Hastings. And I would imagine the tenants would be of a lower standard.
So I'm stuck between getting a negative cashflow property that wont make money for a few years but has better capital gains, or a positive cashflow pad that has low capital gains. Whats the general preferance?
Any advice will be appreciated - I have a lot to learn!
Scott.
Due to my deposit of around $20k (and about $150k equity in my own home), if I buy a property around my home town - Napier and Hastings - the mortgage required will be too high to give the property a positive income. If I'm lucky it may just sustain itself.
I started looking at places such as Wairoa, Waipukurau and Dannevirk? where according to the property press I can make $30 - $50 per week profit as the house prices are lower and I wont have a very high mortgage (thats going by the rents stated in the property press - I read in another post that they may not be accurate?). However these places surely wouldn't have the same capital gains as Napeir or Hastings. And I would imagine the tenants would be of a lower standard.
So I'm stuck between getting a negative cashflow property that wont make money for a few years but has better capital gains, or a positive cashflow pad that has low capital gains. Whats the general preferance?
Any advice will be appreciated - I have a lot to learn!
Scott.
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