Hi all, I am currently in my early twenties wanting to buy my first IP. I am currently working full time, while still living with my parents who are charging a small board fee. All of my income has been going straight into my bank account, and apart from small expenses, most of it stays there. At the moment I have a large sum of it in a term deposit which is about to mature soon. I have been working for around two years now and have decent cash saved, and my parents have offered to help me buy my first property. Obviously I will be responsible for the repayments and looking after all matters relating to the property. I am looking for advice on what my approach should be. I can't really ask huge number of questions on one post, but really the following two are the ones I really want answers to.
I would really appreciate any advice.
- People say make sure the numbers work out. Are these "numbers" the gross and net yields, and the repayments being compared to the rent (i.e. negative/positive geared), and the cash flow?
- My investment approach so far has been to look in Auckland only, as I have lived here all my life and know it quite well. I am focused more on central Auckland units which are near good transport facilities, where I can get good tenants with decent rent. However I have read a lot of people saying to look at the regions as the yields in Auckland are too low (which I too have found). The main thing stopping me is that I don't know much about the regions at all. e.g. Just like Auckland has good and bad areas/streets, so will all of the regions. How do I find out this information when looking at the regions? I could go to real estate agents in the regions, but they all work for the seller so likely won't be honest.
I would really appreciate any advice.
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