Ok, looking at investing in residential property, I have around $280,000 to spend and I was hoping for some advice on where would be a good place to invest in NZ with my budget that could also create a passive income. Can be overwhelming. Any suggestions welcome.
Announcement
Collapse
No announcement yet.
Where next?
Collapse
X
-
-
Originally posted by Cass View PostOk, looking to look at investing in a residential property, I have around $280,000 to spend. Any suggestions? Thanks so much!AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
-
Originally posted by Cass View PostOk, looking to look at investing in a residential property, I have around $280,000 to spend. Any suggestions? Thanks so much!
I would start with the 'why'. Why do you want to buy a rental? What are you looking to achieve from this. Get your aims and goals clear!
Then once your aims and goals are clear, then you need to find a property that helps you meet your aims and goals. It then becomes easy to know if a property is good for you, it just has to help you achieve your goals.
Take your time, and I would start by joining the local NZ Property Investors Federation association, for example I'm in Hamilton so the Waikato property Investor Association. This costs around $300 to join and gives great value and information, without a sales push.
Good Luck
RossBook a free chat here
Ross Barnett - Property Accountant
Comment
-
Depending on how much leverage you want and whether 280 is what you can borrow or your cash, first you have to decide where. I just helped a friend buy a home in Tauranga. Lots of good properties for under 400K. rents are strong and the population growth is fabulous. It would be my first choice for a cheaper city. We had little trouble finding negotiable vendors.
Comment
-
Originally posted by fuzzlevalve View PostDepending on how much leverage you want and whether 280 is what you can borrow or your cash, first you have to decide where. I just helped a friend buy a home in Tauranga. Lots of good properties for under 400K. rents are strong and the population growth is fabulous. It would be my first choice for a cheaper city. We had little trouble finding negotiable vendors.
FH"DEBT BECOMES IRRELEVANT WITH INFLATION".
Comment
-
2013 census - Tauranga median age 41
Auckland 35.1
Hamilton 32.2
http://www.nzherald.co.nz/bay-of-ple...ectid=11017729 - this is an older article about age in Tauranga, and asking the question "who is going to pay for the elderly in Tauranga?"
RossBook a free chat here
Ross Barnett - Property Accountant
Comment
-
The age thing is a misnomer because of the boomers. Every area, in fact almost every country has the percentage of elderly increasing because of uneven population growth. It isn't a leading indicator. Go and spend a few days there, the place is booming and people moving there won't leave again in a hurry. There's too much to like.
Comment
-
I have to agree with the comments restraining Tauranga's growth above. It will definitely do well growth wise, but is it the best place to "speculate" - if that's your strategy?
It's been called $10 Tauranga for years...this still rings true. We've got comparatively low incomes and no shortage of land, and growth that is heavily weighed toward the construction industry - which never ends well.
It's definitely a great place to live and growing rapidly - right now - but if you're a crystal ball gazing type the stats suggest your money is going to be better spent elsewhere.
To the OP, I'd definitely clarify my goals and get a solid plan in place before looking at any property and/or area. I "feel" (BS really - but hey residential property runs on it) that most of the growth has been tapped out of this cycle, so don't become a victim of FOMO take your time and educate yourself. Hard to be more specific without knowing more about your situation sorry.
Comment
-
Originally posted by Simmo View PostI have to agree with the comments restraining Tauranga's growth above. It will definitely do well growth wise, but is it the best place to "speculate" - if that's your strategy?
It's been called $10 Tauranga for years...this still rings true. We've got comparatively low incomes and no shortage of land, and growth that is heavily weighed toward the construction industry - which never ends well.
It's definitely a great place to live and growing rapidly - right now - but if you're a crystal ball gazing type the stats suggest your money is going to be better spent elsewhere.
To the OP, I'd definitely clarify my goals and get a solid plan in place before looking at any property and/or area. I "feel" (BS really - but hey residential property runs on it) that most of the growth has been tapped out of this cycle, so don't become a victim of FOMO take your time and educate yourself. Hard to be more specific without knowing more about your situation sorry.
as have Pacific Shores. New block about to start in Grenada st.
The Port is by far the biggest now and with the Kiwi fruit expecting to double their production by 2025 and with logs coming from everywhere that is not about to change. Te Puke would be a good place to invest.
Thjere is always gloom out there but plenty of people make a lot of money in this town.
Rents have increased a lot in the last 3 years and rentals are in short supply. Snapped up very quickly. Traffic is a big problem now.
Comment
-
Hi, thank you all for your help. I appreciate my comment appeared very vague. I have a low mortgage on my Auckland home, an investment property in Hamilton and a investment property in the wairapapa. I am trying to pay down the mortgage on my home, and the investment properties only just cover themselves except for maintenance, which I end up putting on my home loan to prop up. I was hoping to find a cash flow investment property around $280k to cover maintenance costs for the other 2 properties even if it doesn't make huge capital gains. Everywhere in NZ seems very expensive, although invercargill has some good yields..but not sure about their economic strength right now.
Comment
-
What sort of net yield have you been finding ?
Residential units in Wellington are going for 7% plus
That could then give you about 38pc of the net rent as profit
If that is too low a yield perhaps you could look at commercial where 50pc of the net rent could be profit
Comment
-
Originally posted by Simmo View PostI have to agree with the comments restraining Tauranga's growth above. It will definitely do well growth wise, but is it the best place to "speculate" - if that's your strategy?
It's been called $10 Tauranga for years...this still rings true. We've got comparatively low incomes and no shortage of land, and growth that is heavily weighed toward the construction industry - which never ends well.
It's definitely a great place to live and growing rapidly - right now - but if you're a crystal ball gazing type the stats suggest your money is going to be better spent elsewhere.
To the OP, I'd definitely clarify my goals and get a solid plan in place before looking at any property and/or area. I "feel" (BS really - but hey residential property runs on it) that most of the growth has been tapped out of this cycle, so don't become a victim of FOMO take your time and educate yourself. Hard to be more specific without knowing more about your situation sorry."DEBT BECOMES IRRELEVANT WITH INFLATION".
Comment
Comment