• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 8 of 8
  1. #1

    Default Invest or pay 20% deposit?

    Hello Experts,

    Just bought a NEW owner occupied property (yet to settle). I have 20% of deposit with me but wondering to know what is best weather to put 20% deposit or 10% ? And use remaining 10% to buy another brand new house?

    I can settle it by paying 10% deposit which means I will loose about $20K (No cash back and extra interest rate for less LVR)

  2. #2

    Default

    there is not enough information to provide any real insight. Neither option is good or bad, right or wrong. You just need to weigh up the options in the context of your plans/goals and see which way helps you achieve the goals/objectives faster.

  3. #3

    Default

    Thanks for the reply. My idea is to buy another investment property with remaining 10% and hold it for as long as I can with the assumption that it will grow in next 10 years. To hold as an asset

  4. #4
    Join Date
    Jul 2013
    Location
    Wellington
    Posts
    59

    Default

    And how are you going to buy the investment property with the other 10%? Is it half the value of the first property (giving you 20% on this)?

  5. #5
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,405

    Default

    I would start by meeting with a mortgage broker, and go through the facts with them.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  6. #6
    Join Date
    Oct 2013
    Posts
    1,572

    Default

    Quote Originally Posted by MikeC View Post
    And how are you going to buy the investment property with the other 10%? Is it half the value of the first property (giving you 20% on this)?
    They said "brand new house" - assume this means new build, so 10% requirement.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.

  7. #7
    Join Date
    Jul 2013
    Location
    Wellington
    Posts
    59

    Default

    Quote Originally Posted by Anthonyacat View Post
    They said "brand new house" - assume this means new build, so 10% requirement.
    Havent hea d of 90% loans for investments, even new builds.

  8. #8
    Join Date
    Oct 2013
    Posts
    1,572

    Default

    Quote Originally Posted by MikeC View Post
    Havent hea d of 90% loans for investments, even new builds.
    New builds are outside the scope of the LVR restrictions. Entirely down to bank policy whether they will lend, but I have had clients get 90% loans as recently as August last year.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
    Lower fees for investors, traders & real estate agents!
    [email protected] for more information.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. LEgal issue deposit vendor won’t give us back deposit
    By seith_1031 in forum Finance, legal and tax (NZ)
    Replies: 31
    Last Post: 25-02-2018, 08:44 AM
  2. Deposit to come from?
    By investorak in forum Finance, legal and tax (NZ)
    Replies: 1
    Last Post: 10-03-2017, 08:45 AM
  3. What would you invest in if you didn't invest in property?
    By drelly in forum Property Investment (NZ)
    Replies: 11
    Last Post: 04-06-2013, 10:25 AM
  4. What Happens To The Deposit?
    By Perry in forum Finance, legal and tax (NZ)
    Replies: 10
    Last Post: 14-03-2013, 08:00 PM
  5. Looking for partners to invest in US property have $2 mill to invest
    By internext in forum Property Investment (USA)
    Replies: 0
    Last Post: 17-05-2010, 08:42 AM
  6. How much deposit?
    By GJB68 in forum Property Investment (NZ)
    Replies: 14
    Last Post: 12-12-2006, 04:21 PM
  7. What actually happens to the deposit??
    By psubr in forum Finance, legal and tax (NZ)
    Replies: 12
    Last Post: 14-11-2005, 03:04 PM
  8. how much deposit?
    By a in forum Welcome Newbies!
    Replies: 22
    Last Post: 30-06-2005, 12:26 AM
  9. Cash Deposit vs Existing Equity for first deposit
    By Annett in forum Property Investment (NZ)
    Replies: 18
    Last Post: 26-07-2004, 10:52 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •