Finance & Strategy Expert
I live overseas and own seven rental properties in New Zealand. Last year I approached the ASB to lend me some money for another rental property purchase, but I was declined in case of tenant default (even though I have sufficient additional income to make repayments). I note your advice about not having all your eggs in one basket and admit that all my properties are with the ASB. Two are paid off and act as security for the other five. Now I am wondering just how much security the ASB actually needs and whether I am in a position to ask the ASB to release one of the paid off properties, so that I can approach another bank to use it as security for another purchase. Have you any idea of the current percentages/criteria that the banks use?
I am currently doing a rent to buy on a house that I want to buy, for $185,000, the issue is that a Kiwibank manager is telling me that I need 20 to 30% deposit if I am on a rent to buy scheme (otherwise I would only need 5%). Can you tell me why I need more deposit on a rent to buy scheme as I dont understand.
We are looking at buying a new home and making the current property an investment property. The mortgage left on the current property is only $100,000, is there a way to change the mortgage profile to maximise tax benefits?