Finance & Strategy Expert
Finance & Strategy
Ask Kris Pederson, director of Kris Pederson Mortgages questions relating to Mortgages, Finance, and Strategy
Kris is a respected commentator on the property and finance markets in New Zealand and overseas. He spends his time working closely with his support team sourcing clients leading edge finance strategies.
Is it wise to use the free legal transfer service offered by Kiwibank when refinancing (rather than paying for your own conveyancing)?
I own my own home in Auckland, two rentals in Hamilton (main house and minor dwelling) and one in Tauranga. I have had all my properties recently valuated (and all the houses are making a great increase in value) as I planned to sell them to an LTC and pay off a lot of our home mortgage.
If I do that they will be negatively geared (5% gross yield Tauranga, 6% yield hamilton houses). Next year will be a difficult one cash flow for us as I have to change jobs which is likely to mean a paycut and my wife not working when she has a baby. So I have been toying with the idea of selling the Tauranga property and putting the Hamilton one in the LTC as it can look after itself with the rent.
Should I be holding all the properties and trying to ride out our low income period? I fear that if we decide to hang on to them and money gets too tight we may have to sell and if the market drops, the bank may decide to sell our personal home if we are unable to sell the Tauranga property.
We are looking to buy a house to live in, but may consider renting it if it does not suit our needs. We are in the Auckland area and would appreciate advice on how our home loan may be affected if our owner occupied home becomes a rental. Will we need to meet the LVR investor restrictions even though it's our only property and has previously been owner occupied?