The houses in the $400,000 to $500,000 range in the area I am looking at in (Papamoa, Tauranga) are pretty grim.
I have an opportunity to buy a high spec property for $735,000 which has a granny flat attached with kitchen, laundry, bathroom, garage and sep power (thru meter), consented (seen this consent from Council) in a nicer suburb. Got approval for loan.
Now the calcs.
I have $300,000 deposit. If I bought say a $500,000 house then mortgage would be $200,000. I don't want a mortgage for longer than 20 years from this year (paid off 2037 at the latest).
If I bought $735,000 house, mortgage would be $435,000 which is very scary for me! Income from flat would be $310pw. I have placed it in middle of real estate estimation.
Is it worth it as a single person to then take an extra $310 coming in per week to pay the extra $235,000 debt I would be taking on?
Does that make financial sense to go that way? Yes I know the flat may not be tenanted all the time but at this time rentals are very much in demand. If it really became financially hard for me I would move into the granny and rent the house.
I have an opportunity to buy a high spec property for $735,000 which has a granny flat attached with kitchen, laundry, bathroom, garage and sep power (thru meter), consented (seen this consent from Council) in a nicer suburb. Got approval for loan.
Now the calcs.
I have $300,000 deposit. If I bought say a $500,000 house then mortgage would be $200,000. I don't want a mortgage for longer than 20 years from this year (paid off 2037 at the latest).
If I bought $735,000 house, mortgage would be $435,000 which is very scary for me! Income from flat would be $310pw. I have placed it in middle of real estate estimation.
Is it worth it as a single person to then take an extra $310 coming in per week to pay the extra $235,000 debt I would be taking on?
Does that make financial sense to go that way? Yes I know the flat may not be tenanted all the time but at this time rentals are very much in demand. If it really became financially hard for me I would move into the granny and rent the house.
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