Overall I would
1) Look at your risk to the property market - are too many of your assets in one asset group?
2) What is your long term aim? You have said retirement and obviously still need cash to live a good life.
Put a $ value on the income you need to earn each year.
3) Can your current property investments give you 2) at a risk level you are comfortable with 1)? Sounds like not enough cashflow?
4) Is there major improvements or twists that you can do to your properties to change the cashflow? any minor dwellings, sell of back sections, add bedrooms etc etc
5) Test other scenario's
a) Sell worst performing rental, pay down debt, does this give you the cashflow you need/want?
b) sell worst performing rental, invest in another investment, does this give the cashflow you need/want?
c) What if sell two worst performing rentals?
I find that most property investors have a lemon. It might be hard to rent, difficult tenants, low growth area, low yield area or expensive repairs coming up. Often it is best to take a step back near the top of the boom, sell the lemon and leave yourself in a fantastic position with better cashflow.
If the market crashes or eases (I personally think Hamilton has over boomed and needs a correction. It doesn't have the same growth or shortage as Auckland), then there will be great buying a few years. Most likely you could buy better yielding properties at that time!
Ross
1) Look at your risk to the property market - are too many of your assets in one asset group?
2) What is your long term aim? You have said retirement and obviously still need cash to live a good life.
Put a $ value on the income you need to earn each year.
3) Can your current property investments give you 2) at a risk level you are comfortable with 1)? Sounds like not enough cashflow?
4) Is there major improvements or twists that you can do to your properties to change the cashflow? any minor dwellings, sell of back sections, add bedrooms etc etc
5) Test other scenario's
a) Sell worst performing rental, pay down debt, does this give you the cashflow you need/want?
b) sell worst performing rental, invest in another investment, does this give the cashflow you need/want?
c) What if sell two worst performing rentals?
I find that most property investors have a lemon. It might be hard to rent, difficult tenants, low growth area, low yield area or expensive repairs coming up. Often it is best to take a step back near the top of the boom, sell the lemon and leave yourself in a fantastic position with better cashflow.
If the market crashes or eases (I personally think Hamilton has over boomed and needs a correction. It doesn't have the same growth or shortage as Auckland), then there will be great buying a few years. Most likely you could buy better yielding properties at that time!
Ross
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