About 18 months ago I joined a so-called reputed property education company. They are not cheap as you may know. They have looked at my situation and have recommended I focus in Christchurch for my first investment property (I am based in Auckland). The criterion was that I choose potential IP's capable of returning a net yield of 5%.
It's been difficult to get preapprovals but I have managed to get preapprovals in the range of 400-450K. While I have come across many suitable properties in ChCh that fit this price bracket, I have excluded all of them since my property coach insists not to purchase properties without a net yield of at least 5%.
What would you do? I strongly feel that I should ignore what the property coach is saying. I have listened to them for 18 months but have nothing to show for it. Had I bought a property 18 months ago that was returning at least 4% NET, I'd have at least received a little capital gains by now.
Any thoughts please? Is a net yield of 5% (as recommended by my coach) even realistic to achieve in ChCh at the moment? I am not impressed with the property coaching guys even though they are super friendly. They are the ones holding me back right now!
Many thanks in advance.
It's been difficult to get preapprovals but I have managed to get preapprovals in the range of 400-450K. While I have come across many suitable properties in ChCh that fit this price bracket, I have excluded all of them since my property coach insists not to purchase properties without a net yield of at least 5%.
What would you do? I strongly feel that I should ignore what the property coach is saying. I have listened to them for 18 months but have nothing to show for it. Had I bought a property 18 months ago that was returning at least 4% NET, I'd have at least received a little capital gains by now.
Any thoughts please? Is a net yield of 5% (as recommended by my coach) even realistic to achieve in ChCh at the moment? I am not impressed with the property coaching guys even though they are super friendly. They are the ones holding me back right now!
Many thanks in advance.
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