Good Afternnon Everybody
I am think about purchasing my Mum and Dads property in New Zealand, I have applied the 11 sec rule and I will be recieving a good + cash flow ie: (all in NZ$)
Purchase Price $35,000
Closing Costs $1,000
Rent from Mum and Dad $100,00 per week
property needs a new roof $4,000 and other bit and pieces done to it $1,000, I need a bit of advice please.
1) Do you think I am charging a good rental price keeping in mind this is My Mum and Dad, and I am thinking about a Win Win outcome”, in terms of due diligence Mum and Dad would make great tenants.
2) Would you have a building inspection done on the property just in case, this is our family home I grew up in for 20 yrs of my life.
3) I have about $60K eqity in my current property would you advise me to finance through a Australian Lender or a New Zealander Lender and would I have to pay Mortgage Insurance and how would I go about doing this.
4) Would you suggest I go home to NZ to take care of all these matters or can I do most of this from Sydney (my other home that I love)
This will be my first Investment property so as you can see I am trying to cover all my bases, if you could offer any further advise please feel free to do so.
Regards
Stevefazak
Hi Steve,
I can’t help you much with the financials, but I would advise thinking very carefuly about getting into a financial arrangement with your family.
We had a similar situation in our family when a sibling bought a house and my mother rented it. Everything may be fine for a long time, but situations eventually change. Looking long term rent issues aren’t always easy to settle, repairs and house upgrades can be contravercial and then there’s the matter of not really being able to sell when you may want or need to.
steve
if its +ve cashflow and you can easily come up with a deposit then i dont see the problem.
ideally if you are in no worse a position (cashflow + borrwoing power) than before you buy the house then
go for it!!
]hi stevefazak
try these:http://www.leveragefinance.co.nz/
You may need to get finance in NZ for NZ properties.
cheers
[8D]Thanks Spider, see you at the top
[]hi stevefazak
try these:http://www.leveragefinance.co.nz/
You may need to get finance in NZ for NZ properties.
cheers
[8D]
[/quote]Steve, cash flow pos. plus a ‘win-win’ situation, go for it. We have two houses on the North Isl and you can only obtain finance from N.Z.
It’s pretty easy to do it from Aust. Someone suggested Kiwi Bank – you must already have a current account for them to help you. Wizard (in N.Z.) are very helpful or I have a really good mortgage broker over there. If you’d like his e-mail address, just send me an e-mail.Cheers big Ears!!! [email protected]
wah? $100,000 a week?
why do u rent it so high to them? is the area really that good!? hmmm
]hi stevefazak
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