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.
I have $300,000 capital and I am debt free. But I have no cash flow. I am thinking of purchasing a rental property with positive cash flow and then using the property plus income to finance second one and so on. What's the possibility of above? What are the details that I should consider?
We live in Hawkes Bay. Because of the hot property market at the moment we are looking at selling our rental property. It is freehold, valued at around $350,000 and returning $330 per week. We are both working and live in a rent free house on a farm.
We are thinking we would like to buy a holiday home in Taupo and rent for casual holiday stays. But we are unsure if this is the best option - or would we be better off putting the money into the bank and getting interest off the $350,000?
Is it wise to use the free legal transfer service offered by Kiwibank when refinancing (rather than paying for your own conveyancing)?