Advice for novice

[Ridgeline]

We have recently cashed up some assets and are thinking of entering the property market. Is now a good time?
We have $150k cash and would like to get into the Auckland rental market, plus we own our own home debt free value approx $630K. How could we stucture our assets to start a rental portfolio?

[fudosan]

Hi Ridgeline

A warm welcome to PT

Wow, you are in a very good financial position to invest! If you read the many posts by the pros on this forum, you may be convinced it's always a good time to buy if the numbers are good.

[muppet]

Hi Ridgeline

I suggest that you go and have a talk with one of the gurus in Auckland eg Andrew King, Kieran Trass, Dean Letfus.

It might cost but at least they will give you some direction.

Have you sorted any goals out yet? eg
1. what sort of housing do you want to buy - apartments, 3 bedroom houses etc.
2. Do you want to be cashflow positive or are you happy to be negatively geared?
3. Have you sorted any areas you want to target?
eg west north, south, central, east Auckland
4. Do you want to invest in a medium sized city eg Hamilton, Tauranga, Taupo, Napier Hastings, New Plymouth, Wangarei, Rotorua etc
5. Do you want to invest in new housing or older established houses.
6. Do you want do-uppers or houses that don't need anything doing to them?
7. Structures? LAQC and trusts?

Something to think about

Regards

[Marcus]

We have recently cashed up some assets and are thinking of entering the property market. Is now a good time?
We have $150k cash and would like to get into the Auckland rental market, plus we own our own home debt free value approx $630K. How could we structure our assets to start a rental portfolio?

Hi Ridgeline and welcome,

The doozy that Muppet alluded to would have to be, what you would be hoping to achieve by getting involved in property. Clarifying some reasons why you are wanting to venture down this track will help establish how you go about achieving goals you will set.

You could even bounce some thoughts around here and see what feed back you get

Congratulations on your achievements thus far.

Regards,
Marcus.

[[email protected]]

Hi Ridgeline,
You're in the perftect position to build a multimillion dollar portfolio very quickly and retire if you do it right!
In terms of timing the only time better than NOW to invest is yesterday!!
From the numbers you have posted you could buy at least $4,000,000 worth of property, double that if you buy well. More than enough to retire on!!

[PT_Bear]

An excellent tip I once got was go talk to the rental agents. They will be able to tell you what is and is not in demand in certain areas. This will help you ensure the risk of vacancies is reduced.

Find a good independant mortgage broker to help you with finance. I'd strongly suggest using a broker who also invests in property, as any broker can get you a loan, but most actually know very little about investing.

[Chemill]

If you have not already done so - start learning a lot about property:

Books: I learnt a heap from Dolf de Roos and Steve McKnight.

Magazines: There's a couple out there - will be in bookstore.

Seminars: There's a whole bunch out there, but I have been to some dodgy ones so be careful on this front.

Take your time to thoroughly research your target market and look at tons of houses, you'll eventually be able to spot good deals as they come by.

Chemill

[Josko]

Hello Ridgeline, Welcome,

Well done in achieving the financial position you have at present. It is always a good time to buy, it just depends what you want to do with it after you buy it.

There is a variety of structures that can accomplish your goals in becoming a landlord, many have been discussed here before, a search on Trust & LAQC should give you some background reading. It is one of the favourite topics of discussion here so no doubt there will be more suggestions forthcoming, the main detail is that structures are relative to your personal, family goals and aspirations and for this reason it is advisable to employ a professional for advice.


Cheers,

[Ridgeline]

Thanks everyone for sharing your expertise with us, we now have a date with the library to stock up on some books to get us started, we hope to be sharing our own success story sometime in the not to distant future.

[fudosan]

Look forward to hearing your success story, Ridgeline.

[Roger_2004]

Hi Ridgeline,

Here's some helpful property investment items

From the numbers you have posted you could buy at least $4,000,000 worth of property..

Dean can you plz post your mathmatical formula on how you came up with $4m figure?


Cheers

Roger

[[email protected]]

150K cash plus r/c on own home means sufficient deposits for 3.25 million. Buy the first couple well and recycle deposits = over 4 million probably

[Roger_2004]

Hi Marcus,

How come there's no edit button showing with my last post in this thread? & 1 showing in this post!

Thanx

Roger

[tamara]

Hi Roger

I can see the edit button on both of your posts.

Is it still the case that you cant see the edit button.

Regards

Tamara

[Roger_2004]

Hi Roger

I can see the edit button on both of your posts.

Is it still the case that you cant see the edit button.

Regards

Tamara

Didn't realise that you're a moderator?

If you are? No I can't see both edit buttons!

Thanx

Roger