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.

Loan movements

Dee asks:

I purchased an investment property 12 months ago and paid 50% as a deposit. I have now sold an overseas property and bought a house for myself, which is also mortgaged 50%. I want to move the loan on my house to the investment property, which the bank is willing to do.

However, when I asked my accountant if I could claim on this additional mortgage on the investment property he said I couldn't as I didn't need it when I first bought the property. This seems to go against everything I have read in this forum and in books. Is he misinformed?

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Sell or hold in Kingsland

nadia asks:

We own an apartment in Kingsland, Auckland which looks as though it has significantly increased in value since we bought it. It is not quite a positive cash flow yet: we contribute a small amount each week to cover the mortgage and body corp fees.

But, if we sold it, we could possibly buy another rental in somewhere like Hamilton, almost mortgage free. We know that Auckland property values are growing faster than those in smaller towns, but we feel like this could give us some extra cash in the hand for our daily lives.

What do you think?

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Loan structure options

Julie asks:

I'm wondering what the best loan structure is for me. I've decided to rent out my house (which has 10% of the mortgage to be paid off on a principle+interest loan) and am about to purchase another two rentals (one title with two rentals).

How should I structure my loans? I would like to use interest-only on the two new rentals. Should I change my initial house to an interest only or continue overpaying the mortgage in an attempt to pay it off?

As I am flatting again, I may look at purchasing a home late in the year. However, it may be a better opportunity to purchase another rental before the end of the year if possible.


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