Hi All,
I'm new to NZ property investment, although I've had 2 UK rentals previously, one of which I have just sold.
I've just signed a sales and purchase agreement for a tidy 3 bed in Rotorua. While I don't believe it's a complete bargain (I'm paying only 8k off asking price) it feels like a solid family home which should be easy to rent.
I've done the figures and it comes out to about 6.6% yield, which while not the greatest, I'm pretty happy with as this will be a long term investment.
My main dilemma is the strategy I am going to use going forward. I have read a few times that a good strategy is the whole "interest only mortgage" and buy a number of properties relatively quickly (using value-added equity to recycle deposits etc) then further down the line sell a couple and sink profit back into the interest only ones... Obviously this relies on growth, which medium to long term is probably going to happen...
The other is obviously to buy slower but pay interest and principle. My main question is what would the seasoned property investors out there choose to do if they wanted to build a solid portfolio that could support them financially in a decade or so?
My main goal is to eventually invest full time and use my portfolio as an income. Don't worry, I am not under any illusion that it is easy money and am happy to admit I've got a lot to learn!
Lastly, what is the current feeling about investing in Rotorua. Is it due for capital gains seen in other parts of NZ?
I've done some reading and talking and have a list of good/bad Rotorua suburbs (obviously it's not that black and white, but for the sake of argument it's a starting point for someone who doesn't know the area) these are:
Good:
GlenholmeHillcrest
Springfield
Lynmore
Fairy Springs,
Sunny brook
Ngongotaha - ok
Pukehangi - ok
Not so good:
Fordlands
Turner Drive
Leslie Avenue
Western Heights
What is your opinion on the above? As mentioned I don't know how accurate the above list is but please feel free to add/correct me if nec.
Lastly, I've done lots of searching on the forum already for this info!
Thanks in advance.
I'm new to NZ property investment, although I've had 2 UK rentals previously, one of which I have just sold.
I've just signed a sales and purchase agreement for a tidy 3 bed in Rotorua. While I don't believe it's a complete bargain (I'm paying only 8k off asking price) it feels like a solid family home which should be easy to rent.
I've done the figures and it comes out to about 6.6% yield, which while not the greatest, I'm pretty happy with as this will be a long term investment.
My main dilemma is the strategy I am going to use going forward. I have read a few times that a good strategy is the whole "interest only mortgage" and buy a number of properties relatively quickly (using value-added equity to recycle deposits etc) then further down the line sell a couple and sink profit back into the interest only ones... Obviously this relies on growth, which medium to long term is probably going to happen...
The other is obviously to buy slower but pay interest and principle. My main question is what would the seasoned property investors out there choose to do if they wanted to build a solid portfolio that could support them financially in a decade or so?
My main goal is to eventually invest full time and use my portfolio as an income. Don't worry, I am not under any illusion that it is easy money and am happy to admit I've got a lot to learn!
Lastly, what is the current feeling about investing in Rotorua. Is it due for capital gains seen in other parts of NZ?
I've done some reading and talking and have a list of good/bad Rotorua suburbs (obviously it's not that black and white, but for the sake of argument it's a starting point for someone who doesn't know the area) these are:
Good:
GlenholmeHillcrest
Springfield
Lynmore
Fairy Springs,
Sunny brook
Ngongotaha - ok
Pukehangi - ok
Not so good:
Fordlands
Turner Drive
Leslie Avenue
Western Heights
What is your opinion on the above? As mentioned I don't know how accurate the above list is but please feel free to add/correct me if nec.
Lastly, I've done lots of searching on the forum already for this info!
Thanks in advance.
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