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Hi, my name is Jeffrey and this is my first post on these forums.
There seems to be some knowledgeable people on these forums and I look forward to becoming apart of the community.
I am just starting my journey in investing in real estate and want to get advice from people who are already successful on what they would do if they were in my situation.
Currently I:
- Live with family in Wellington (family have agreed not to charge me rent/living costs till end of year)
- Plan to move back with parents in Palmerston North (no living costs for life)
- have mortgage pre-approval of $300,000
I have read a few investment real estate books (Graeme Fowler and Brad Sugars) so know the basics of investing in real estate but want to apply this knowledge and buy my first house.
I am currently looking in the Lower Hutt regions of Wainuiomata, Naenae, Taita and Stokes Valley. There is a also the option of looking in Eastern Porirua but I'm scared of getting bad tenants there.
At this stage of the investment ladder what I should be going for is below value since I don't have much equity? and then recycle this equity with a valuation after 6 months?
I have been to about 50 open homes in Lower Hutt but have not found anything that is below value at my end of the market. I currently have a conditional contract on a house in Lower Hutt that is worth $200,000 with a gross yeild of 7% based on 100% borrowing. I have got it valued and this came back at exactly $200,000. There is do up potential but it will require additional cash for these renovations. So I'm thinking of backing out of this deal since I have a due diligence clause.
So should I keep looking in Lower Hutt? Where there is not much below value opportunity and gross yeilds only fetching 7%
I've looked at the site landlords website
And there seems to be a lot of below value property in South Auckland, mainly Manurewa with 8-9% yields too. Would these be recommended, I know nothing about the Auckland market so could get ripped off but feel that is the best place to invest because the market is growing the most. Also would there be many bad tenants in these areas? What about managing since I live in Wellington?
Also I'm wondering how these properties on landlords.co.nz can be below market value since they are on display for everyone to see yet they are not being snapped up quickly. Also does the sellers snap up the best deals for themselves and advertise the rest meaning they are quite average?
Also help on refinancing and recycling equity would be helpful. I've been told stay away from apartments, units and multi dwelling properties because the banks don't like these and won't refinance. So pretty much stick to houses? Also I've been told they don't like under 90m2 floor area and just that the criteria for refinancing is quite strict. Could someone tell me types of properties have the best change of refinance and just what banks look for?
Sorry for the long post but any advice would be great
There seems to be some knowledgeable people on these forums and I look forward to becoming apart of the community.
I am just starting my journey in investing in real estate and want to get advice from people who are already successful on what they would do if they were in my situation.
Currently I:
- Live with family in Wellington (family have agreed not to charge me rent/living costs till end of year)
- Plan to move back with parents in Palmerston North (no living costs for life)
- have mortgage pre-approval of $300,000
I have read a few investment real estate books (Graeme Fowler and Brad Sugars) so know the basics of investing in real estate but want to apply this knowledge and buy my first house.
I am currently looking in the Lower Hutt regions of Wainuiomata, Naenae, Taita and Stokes Valley. There is a also the option of looking in Eastern Porirua but I'm scared of getting bad tenants there.
At this stage of the investment ladder what I should be going for is below value since I don't have much equity? and then recycle this equity with a valuation after 6 months?
I have been to about 50 open homes in Lower Hutt but have not found anything that is below value at my end of the market. I currently have a conditional contract on a house in Lower Hutt that is worth $200,000 with a gross yeild of 7% based on 100% borrowing. I have got it valued and this came back at exactly $200,000. There is do up potential but it will require additional cash for these renovations. So I'm thinking of backing out of this deal since I have a due diligence clause.
So should I keep looking in Lower Hutt? Where there is not much below value opportunity and gross yeilds only fetching 7%
I've looked at the site landlords website
And there seems to be a lot of below value property in South Auckland, mainly Manurewa with 8-9% yields too. Would these be recommended, I know nothing about the Auckland market so could get ripped off but feel that is the best place to invest because the market is growing the most. Also would there be many bad tenants in these areas? What about managing since I live in Wellington?
Also I'm wondering how these properties on landlords.co.nz can be below market value since they are on display for everyone to see yet they are not being snapped up quickly. Also does the sellers snap up the best deals for themselves and advertise the rest meaning they are quite average?
Also help on refinancing and recycling equity would be helpful. I've been told stay away from apartments, units and multi dwelling properties because the banks don't like these and won't refinance. So pretty much stick to houses? Also I've been told they don't like under 90m2 floor area and just that the criteria for refinancing is quite strict. Could someone tell me types of properties have the best change of refinance and just what banks look for?
Sorry for the long post but any advice would be great
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