I prefer to rely on a property manager so will be looking at cash on cash returns as a priority (there will be other factors also). I'm guessing outside of Auckland will generally be better?
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What part of the country are cash on cash returns the greatest?
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When you buy a property it is different from a share, when all Air New Zealand shares are identical. Most properties have a unique opportunity to develop and improve your cashflow.
I bought a property last year, I'm renovating it now, when I'm done, refinanced and rented, my return on capital invested will be infinite because I will be able to draw out all capital invested, completely ignoring passive market capital gain. I am a very "active" investor, in that I am happy to buy something based on what it could become and then work to make it so. Other investors buy properties that cover their costs and are in growth areas and are happy to wait for values and rents to increase and inflation to eat away at their debt.
Yield is a measure of risk. In general, the highest yields on paper will be properties with most uncertainty about current and future viability as a rental, or will be custom built to a purpose that increases cashflow but decreases flexibility.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Originally posted by Nick G View PostWhen you buy a property it is different from a share, when all Air New Zealand shares are identical. Most properties have a unique opportunity to develop and improve your cashflow.
I bought a property last year, I'm renovating it now, when I'm done, refinanced and rented, my return on capital invested will be infinite because I will be able to draw out all capital invested, completely ignoring passive market capital gain. I am a very "active" investor, in that I am happy to buy something based on what it could become and then work to make it so. Other investors buy properties that cover their costs and are in growth areas and are happy to wait for values and rents to increase and inflation to eat away at their debt.
Yield is a measure of risk. In general, the highest yields on paper will be properties with most uncertainty about current and future viability as a rental, or will be custom built to a purpose that increases cashflow but decreases flexibility.
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That one is in Wellington mate. I buy through our team :-)Free online Property Investment Course from iFindProperty, a residential investment property agency.
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