Advice on first time investment property

[rx7rotary]

Hi everyone, this is my first post here.

I bought a house in Massey , West AKL 3 and half years ago, for 350K, it is now valued at 400k.
I have paid off around 70k and currently owe around 267k.
I assume I have anywhere from 120-140k to play as in equity to purchase another property.
The idea is we would like to move out of the area, and live in Torbay or Browns bay. Potentially looking at a semi do-up (I would do most things myself)
The Massey property would be rented out at $400per week, which would just cover the repayment.
My idea is to get the worst house in the best possible area of Torbay or Browns bay, but not sure of how much should I strech.
If I get a house of 450k over the shore we get left with all the chores and bills paid off with $650 a month.
Also in terms of renting the current proerty I realise that I can setup a business to do this but really unsure how that works? Could anyone give me some advice or perhaps point me in the right direction.

Kindest Regards
Mark

[TheLiberalLeft]

I wouldn't worry about complicating with a company setup just yet.

In the Bays, try and buy in Rangitoto college zone. Don't just assume that Browns Bay is in zone - not all of it is. You need to download the zone map from the college's website.

It'll cost a bit more, but will pay off in the long run.

[props4u]

hi Mark, welcome

other than to suggest u follow TLL's advice

I wouldn't worry about complicating with a company setup just yet.

In the Bays, try and buy in Rangitoto college zone. Don't just assume that Browns Bay is in zone - not all of it is. You need to download the zone map from the college's website.

It'll cost a bit more, but will pay off in the long run.

here's some suggestions, hope others can chip in, there r many good people here

• don't rush into it, read and learn as much as u can by searching past threads if need b
• learn about LVR and yield
• atm not bad idea to use floating rates, this way u avoid break fees plus have lowest rates - if feeling vulnerable go 50/50 floating/fixed
• aim to spread ur mortgages with different lenders (banks), don't let one bank handle both mortgages cuz they wouldn't hesitate to cream u which they can and do do
• for future rental 2b, engage PM or learn all u can from Keys here about how to deal with tenants and RTA, go to his website and download pre tenancy application form and tenancy agreement forms
• or learn from Glen in here too (Glen and Keys are best)
• advertise on trademe with best viewing times for applicants to be around 1pm
• learn difference between fixed term tenancy agreement and periodic and decide what u want tenant to be on

hope others will correct me if wrong

[rx7rotary]

I wouldn't worry about complicating with a company setup just yet.

In the Bays, try and buy in Rangitoto college zone. Don't just assume that Browns Bay is in zone - not all of it is. You need to download the zone map from the college's website.

It'll cost a bit more, but will pay off in the long run.

Thanks TTL that was exactly what I was thinking , the problem is if I will be able to strech that much. I have downloaded the zone map, thanks for that, didnt even realise this stuff existed, I guess no kids yet so never thought about school zones.
Thanks
m.

[rx7rotary]

• learn about LVR and yield - Can you point me in the right direction please?
• atm not bad idea to use floating rates, this way u avoid break fees plus have lowest rates - if feeling vulnerable go 50/50 floating/fixed
• aim to spread ur mortgages with different lenders (banks), don't let one bank handle both mortgages cuz they wouldn't hesitate to cream u which they can and do do
• for future rental 2b, engage PM or learn all u can from Keys here about how to deal with tenants and RTA, go to his website and download pre tenancy application form and tenancy agreement forms
• or learn from Glen in here too (Glen and Keys are best)
• advertise on trademe with best viewing times for applicants to be around 1pm
• learn difference between fixed term tenancy agreement and periodic and decide what u want tenant to be on

hope others will correct me if wrong

Thanks very much for all your comments and advice... and I certainly won't be rushing with this.
m

[props4u]

sorry rx7, a wee bit late (i wont hear the end of it from her if i stay on any longer) will get back to u if i can in a day or two, hope someone else can fill in, in meantime

help pls anyone ... rx7rotary needs links and how to search info ... help pls anyone

lvr = loan to value ratio = value of loan divided by value of govt valuation times 100 = %age
eg kiwibank will not lend more than 70%, bnz up to 85% etc etc

[NovInvestor]

Yes like what TLL said, definitely buy in Rangi school zone.

House prices in Auckland these days are driven a lot by which school zone it is in now, immigrants just love a good school.