Starting out

[What to do]

Hi all,

I'm new to the boards and after some advice if possible.
I have returned to NZ after living the past 6 years overseas and travelling as much as possible. I now want to get serious about building wealth for the future. I do not know much about property but have just joined APIA and begun talking to people to build my knowledge.

Currently I live in Auckland and rent which is $340 a week.
I am 34 and single and earn about $140k a year.
I have $100k in savings.

Personal debt is my student loan which is $30k and in the process of being paid off.

I own 1/3 of a property in Hamilton that my parents gifted the deposit for to myself and 2 siblings 7 years ago (purchased for $310k) . It is 3brd and rented for $330/week with each of us topping up the mortgage by $50/week.

Would appreciate advice on what my next steps should be:
- have I missed the property ladder in Auckland?
- should I look at buying a property in Hamilton (or elsewhere)?
- should I continue to save for a bigger deposit?
- would anyone recommend joining Property Apprentice or similar mentor programs?

Many thanks

[Auckland Newby]

Hi What to do,

Welcome! My advice is read read read! There are some great books written by NZ'ers and even if written a few years ago are still relevant. Most of them you can book from the library but there are a few that you'll probably want your own copy of. Surround yourself with people that have been successful in investing and their knowledge etc should rub off on you. Go to free seminars I always find some bit of useful information there.

Good luck!

[Propertytrader]

Welcome mate,what to do.

Never is too late,but as a newby, i would suggest you ask yourself 2 questions.

What am i after

capital gain?

or high yield?

and do research about these topics,thanks

[BigDreamer]

I own 1/3 of a property in Hamilton that my parents gifted the deposit for to myself and 2 siblings 7 years ago (purchased for $310k) . It is 3brd and rented for $330/week with each of us topping up the mortgage by $50/week.

I had to comment on this - From a yield point of view, this is awful that you and your siblings have to top up $150 a week after 7 years of owning the property!

Have you checked what the property is worth now?

[Propertytrader]

I had to comment on this - From a yield point of view, this is awful that you and your siblings have to top up $150 a week after 7 years of owning the property!

Have you checked what the property is worth now?

If the rent does not cover the mortgage, i wont invest on a rental property,unless is a family home.

Try to see if a rent valuation can be done, so the rent covers the mortgage interest, if it does not, you may need to add a sleep out or a granny flat to the section.

thanks and good luck

[donna]

Hi 'What to do' and welcome to PropertyTalk.

You can gain valuable experience as a property investor by starting with the property you have a 3rd share in. The numbers clearly are not great aye - so you need to do something about them. The weekly rent seems low. Is the property managed by a property manager? Are there regular rental increases? (e.g. every 6 months or at least every 12 months)?

Have you considered what can be done to the property (renovations etc) that will provide more rental income?

I think you should work on this property, learn the ropes of property investment firsthand - get it Cashflow neutral asap - and then consider other opportunities. Your siblings will be delighted you've saved them the extra $50 per month too.

cheers,

Donna

[What to do]

Thanks all for the comments! Much appreciated!

Yes, I understand the property I own 1/3 of isn't performing well. My other 2 siblings are very conservative and do not like to do anything that may result in the current tenant (who has been there 6 years) moving out. We did put a new kitchen, bathroom, carpet and paint job in 7 years ago and it is managed for us. To be honest, it will be easier to just let my siblings run it as they have done while I was overseas and concentrate on building a portfolio myself.

Cheers

[Propertytrader]

Mooning what to do,

As uncle KEvin once said,get real, Money has no feelings period

Fire your siblings and increase the rent, the tenant has 60days to accommodate for the rent increase or move out.

Or if you want to keep the tenant, just use the equity.

Get used to real life not Hollywood scenarios thanks