Hi all,
I'm very new to the idea of property investment so please bear with me. All help/suggestions is highly appreciated.
I've seen a broker, have done research and spoken to other investors however there are some very basic and fundamental things which I can't get my head around.
Scenario:
In the long run, I will like to purchase multiple properties and of course, my own home to live in.
So, my questions are:
Say I buy the first IP for 450k
Thank you!
I'm very new to the idea of property investment so please bear with me. All help/suggestions is highly appreciated.
I've seen a broker, have done research and spoken to other investors however there are some very basic and fundamental things which I can't get my head around.
Scenario:
- I've told my broker I'd like to purchase my first property (living at home right now), this first property will be an IP and the short term goal is to purchase 2 IPs.
In the long run, I will like to purchase multiple properties and of course, my own home to live in.
- Pre approval around 450K (with the broker suggesting that there will be room to push the loan when the time comes for second property (?))
- Deposit amount: ~170k
- Living & investing in Auckland.
So, my questions are:
Say I buy the first IP for 450k
- Should I be putting all 170k into the first property as a deposit? Or am I supposed to put in the minimum required deposit (90k in this case) and put the rest of the money in as something else?
- Either way it is done, how do I use the equity from this first property to pay for the second (assuming that my income + 2nd IP rental can service the 2nd property) Essentially I will have an extra 80K or so in the first IP immediately, how do I 'use' this 80k towards the second IP and how does it work?
Thank you!
Comment