Hi All
I am very keen to start investing in residential investment property - I currently only have a main home, but have equity in it that I can borrow against for an investment.
I am looking to initially use a buy and hold strategy with my ultimate port folio being a mixture of cash flow and capital growth properties (in order to mitigate future (potential) solvency risk while at the same time obtaining long term (15 year time frame) capital growth. I may trade later, but that will only be to assist with the recycling of a deposit.
I want to start with a cash flow property (6-7% net yields) but still but in an area with moderate capital growth (doesn't have to be stellar, but can't be flat lining growth). I realise that obtaining this type of net yield range will require a purchase below market value together with subsequent value add (e.g. extra rooms, sleep out etc.) I can afford up to around a 700k purchase price (equity plus debt).
I live in Pukekohe, hence my two main areas under consideration are Hamilton and South Auckland. I am wondering if anyone had some general thoughts on these two investment areas in terms of a comparative analysis and given my above stated investment objectives.
Thanks again everyone.
Nathan
I am very keen to start investing in residential investment property - I currently only have a main home, but have equity in it that I can borrow against for an investment.
I am looking to initially use a buy and hold strategy with my ultimate port folio being a mixture of cash flow and capital growth properties (in order to mitigate future (potential) solvency risk while at the same time obtaining long term (15 year time frame) capital growth. I may trade later, but that will only be to assist with the recycling of a deposit.
I want to start with a cash flow property (6-7% net yields) but still but in an area with moderate capital growth (doesn't have to be stellar, but can't be flat lining growth). I realise that obtaining this type of net yield range will require a purchase below market value together with subsequent value add (e.g. extra rooms, sleep out etc.) I can afford up to around a 700k purchase price (equity plus debt).
I live in Pukekohe, hence my two main areas under consideration are Hamilton and South Auckland. I am wondering if anyone had some general thoughts on these two investment areas in terms of a comparative analysis and given my above stated investment objectives.
Thanks again everyone.
Nathan
Comment