I bought a house in Whangraparoa, 40 mins from Auckland, last Dec. for 600,000 and is currently rented for $550.00 per wk. This feb I bought and read Steve’s book and realize that I have made a big mistake as the property is not producing a positive cashflow.(I top up the mortgage $350 per month) It has fantastic views of Red beach and Orewa, my idea being that it will go up in value faster than anything in suburbia.Do I hang onto it or do it up (it’s a bit tired)and sell? Problem is , it is very hard to find a positive cash flow property in NZ ’cause I’ve been looking.You have to go to places like Paeroa in the middle of nowhere. Comments please.
Suzanne Kidd
Suze..
Have a look at Westans post’s and some of the other’s re purchasing in NZ.. it can be done !!
Me..never even been there…one day[^]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
You have to decide – what do you want – capital growth (sounds like the property you have) or postive cash flow.
Me I prefer capital growth. I want my assets to grow. Postive cash flow properties do not tend to grow and Steve acknowledges that. Once I am closer to semi-retiring, I will then invest in postive cash flow.
If you reckon the property will grow in value and you can afford to make the re-payments, they why not keep it.
it is possible to have both
If you have spent your money, no point worrying, in time it should either increase re growth or mortgage reduces if P and I, and rent increases
You are paying out a lot, but I would expect that eventually things could work out for you. Not based on any knowledge of the area, but I dont see a whole lot going backwards….unless overpriced to begin. Inwhich case hang on to it would be my opinion.
Elves
Like all the other guys said if you are sure that the property will grow in value and will make money in the future why sale it. I would just keep it and then go out there invest in PCFP. That way you use the income from PCFP to help the repayment of your NCFP now. By doing this it will offset each other off.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedom]Chan $
Good PointsRegards
JulianTHERE IS ALWAYS A BETTER WAY!
Suze, does ‘last Dec’ mean only two months ago?
If you can afford to keep the place, and it sounds like you can, or else you wouldn’t have bought it, I would hold on to it. If the Growth is there, and again, water views etc. sounds promising (I don’t know NZ at all), then capitalise on that growth by drawing some equity out to fund your deposits for the CF+ places. They are definitley available there, Mini, Del, Westan etc. are finding heaps. Mini and Westan even find some as ‘spotters’ so perhaps contact them.
Cheers
MelThanks everyone. Great advise. Yes I bought it in dec 2003 as a private sale, so the price would have been 640,000 to offset agents fees and he would have got it too as there was a lot of interest.
I think I will keep it as I only have to pay 350.00 per month to top up the mortgage, and then i can use it as equity in another positive cash flow property.Cheers
Suze in NZ[
]Suzanne Kidd
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