• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 5 of 5
  1. #1

    Default Investment property in Papamoa, Tauranga. Keep or Sell?

    Hi all,

    I have been reading these forums for about 1 year now and hopefully you guys can help.

    I brought a house in Palm Springs Papamoa Beach about 2 years ago. This was going to be a house for me to move into, however, I ended up staying in Auckland.

    I have had this rented now for 2 years with very good tenants (only a few minor things) but it's not a very good "investment" property from what I get back on it. Currently rented for 545 p/w.

    I am wondering if you guys see the area going up in value over the next say few years? Or should I just sell and buy a house in Auckland? Bought the house for 730k and have a 450k mortgage. I don't own anything else but I have been approved to buy a owner occupied house while keeping the one in Tauranga.

    Any advice would be great.

    Many thanks.

  2. #2

    Default

    Nice area and should see good capital gain over the long term I would think. Sure enough if you sell prices will surge in coming years ha ha. I'd be leaning towards holding if it was me .

  3. #3
    Join Date
    Mar 2008
    Location
    Auckland Wide
    Posts
    1,239

    Default

    I would keep and buy. When you are trying to buy the third and you decide you need better cash flow, then you might consider selling. A strange man once told me, dont sell until you need to and don't buy in a fashion where you might forced to sell later.
    Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
    My Website
    Be informed - register for our free monthly newsletter


  4. #4
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,427

    Default

    These kind of questions are really hard, and depends on your over circumstances. I would suggest getting advice from an expert.

    Tauranga seems to be building too many houses and seems that it will have an oversupply. Try and find some information on the population growth in Tauranga area in last year, vs the number of houses built. Last time I looked, Tauranga was building more than it needed. I listened to Matt Gilligan a few weeks ago, and he seemed to have the same view of Tauranga.

    Also if you are going to buy a new personal house. Generally you want to recycle your equity into your personal house. You situation is a little different, so I would suggest expert advice, but attached is commonly how this is done - https://www.cswaikato.co.nz/index.ph...n-auckland/183

    But first - if your property a good rental? Cashflow is only part of the picture, and currently I'm guessing you are around breakeven or $1000 negative with all expenses considered. If the rental has full debt, it is about $ 13,000 cashflow negative before tax (which is likely to disappear at some point)

    Hope this helps

    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.

  5. #5

    Default

    Thanks everyone, this gives me a lot more to think about.

    Ross - it is not a good rental so i think the best way would be to move it and buy a personal home then use the equity to buy a better investment property. Thanks for the advice.


 

Thread Information

Users Browsing this Thread

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

Similar Threads

  1. Tauranga property investment
    By MelodyShi in forum Property Investment (NZ)
    Replies: 7
    Last Post: 23-02-2016, 11:05 AM
  2. Investment Property Tauranga
    By Chica in forum Property Investment (NZ)
    Replies: 6
    Last Post: 15-12-2015, 04:40 PM
  3. Tauranga, Gate Pa Investment
    By Oakmont in forum Property Investment (NZ)
    Replies: 2
    Last Post: 21-09-2015, 09:47 PM
  4. Auckland or tauranga investment property
    By velsheda in forum Property Investment (NZ)
    Replies: 7
    Last Post: 17-05-2013, 04:39 PM
  5. Tauranga vs Nelson investment property
    By Orpheus1 in forum Property Investment (NZ)
    Replies: 10
    Last Post: 26-05-2010, 08:50 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
  •