Hi everyone,
I'm a little new to this whole thing (and these forums, but have been reading and soaking up the awesome knowledge like a sponge), myself and my partner bought our first house a year ago in Auckland, which we are now selling due to splitting up and I'm looking at what to do with my share of any money. Its not enough to buy a worthwhile property in Auckland, but after a quick check tonight I've noticed a number of areas around the country (North Island specifically) where housing is extremely affordable.
What I'm going over in my mind is the possibility of buying one an investment property in an area such as Te Kuiti, Moerewa etc where it should be at the very least, cash flow neutral, if not positive.
Is there a downside or pitfall to this that I'm not thinking about? I still need to run the numbers on any property I investigate further, and would be sure to take into account vacancy rates and property management fees (as I wouldn't be in the same town/area to manage it myself)... but if the numbers stack up, its got to be a good idea right?
I'm a little new to this whole thing (and these forums, but have been reading and soaking up the awesome knowledge like a sponge), myself and my partner bought our first house a year ago in Auckland, which we are now selling due to splitting up and I'm looking at what to do with my share of any money. Its not enough to buy a worthwhile property in Auckland, but after a quick check tonight I've noticed a number of areas around the country (North Island specifically) where housing is extremely affordable.
What I'm going over in my mind is the possibility of buying one an investment property in an area such as Te Kuiti, Moerewa etc where it should be at the very least, cash flow neutral, if not positive.
Is there a downside or pitfall to this that I'm not thinking about? I still need to run the numbers on any property I investigate further, and would be sure to take into account vacancy rates and property management fees (as I wouldn't be in the same town/area to manage it myself)... but if the numbers stack up, its got to be a good idea right?
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