Advice please - Hamilton

[perth]

Hi everyone, been pre approved for 400 yesterday, first home buyers but currently living in Perth and want to buy in Hamilton as an investment property.

Plan is to get this going then we will be moving back 12-18 months to NZ, hopefully can secure jobs in Hamilton otherwise Auckland where we are from will be the secondary option.

The dilemma is

to buy a cheaper house which needs "doing up" but obviously will be lower rent for the next 12-18 months then when we do decide to settle we will renovate if we can find jobs

or

Buy a house that is renovated, which means higher price and higher rent (we are looking at decent land and weatherboard houses here)

We will be afford to chuck alot more on the mortgage while we are in Perth but not to much when we are back in NZ

Advice welcome

[Rosco]

Hi Perth,

I presume your preapproval is based on it being a rental?

Is this really going to be your personal house long term? If so are you sure you want to buy in say Hamilton now, but not being 100% sure if you end up there? What happens if you get jobs in Wellington or Auckland or Christchurch?

I hope Hamilton will have good growth over the next year, but I wouldn't guarantee it. So you could be in a situation where you buy, and then if there is little growth find it runs at a loss for 12-18 months and then you sell at a loss after commission and legal fees, plus some vacate period to sell.

I think property is a long term investment, and I'm just worried that you might get caught out if short term.

Ross

[perth]

Hi Perth,

I presume your preapproval is based on it being a rental?

Is this really going to be your personal house long term? If so are you sure you want to buy in say Hamilton now, but not being 100% sure if you end up there? What happens if you get jobs in Wellington or Auckland or Christchurch?

I hope Hamilton will have good growth over the next year, but I wouldn't guarantee it. So you could be in a situation where you buy, and then if there is little growth find it runs at a loss for 12-18 months and then you sell at a loss after commission and legal fees, plus some vacate period to sell.

I think property is a long term investment, and I'm just worried that you might get caught out if short term.

Ross

Hi Ross,

Thanks for your input, guess that is a risk. would be Auckland we would look at a second option for jobs as family is based there then yes you are right turns into long term investment. Just trying to get a foot in the door at this stage