Hi all,
Have now bought a house in Gore, with a 10.5% return and a fantastic tenant. The house will need maintenance as it's a very old villa but in a pretty good condition. Bought for 89K, rents at 180pw.
Now looking at what to do for the next property.
What are your thoughts around having a lot of properties at the cheaper end of the scale vs a few at the higher end. I understand that if I bought at the higher end and had 1 or 2 vs 3 or 4 then I'd pay less rates and less insurance BUT would have to wait longer to get the deposit.
I'm looking at one now for around 220K in Te Atatu BUT I'm also thinking maybe I should should hold off and buy on in Hamilton for around 350, in about August. I'm looking at the good fixed interest rates at the moment though, and that's quite appealing. My buying rules are 30K below RV/CV with at least 7% gross return.
But as an overall strategy just wanted to see what your thoughts were regarding lots at low prices, or few at higher prices.
I'm very new to all of this, but LOVE it to pieces. Found something I really enjoy.
The long term strategy is (in 10 years time) to get enough from rent so I dont have to work. I'd like to do around 2 'projects' a year - renovation projects - for cashflow and have my long term holds to keep the rent coming in as income.
Thanks in advance.
Ami
Have now bought a house in Gore, with a 10.5% return and a fantastic tenant. The house will need maintenance as it's a very old villa but in a pretty good condition. Bought for 89K, rents at 180pw.
Now looking at what to do for the next property.
What are your thoughts around having a lot of properties at the cheaper end of the scale vs a few at the higher end. I understand that if I bought at the higher end and had 1 or 2 vs 3 or 4 then I'd pay less rates and less insurance BUT would have to wait longer to get the deposit.
I'm looking at one now for around 220K in Te Atatu BUT I'm also thinking maybe I should should hold off and buy on in Hamilton for around 350, in about August. I'm looking at the good fixed interest rates at the moment though, and that's quite appealing. My buying rules are 30K below RV/CV with at least 7% gross return.
But as an overall strategy just wanted to see what your thoughts were regarding lots at low prices, or few at higher prices.
I'm very new to all of this, but LOVE it to pieces. Found something I really enjoy.
The long term strategy is (in 10 years time) to get enough from rent so I dont have to work. I'd like to do around 2 'projects' a year - renovation projects - for cashflow and have my long term holds to keep the rent coming in as income.
Thanks in advance.
Ami
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