Labour of love pays off - Mary Holm

About 10 years ago, I did extensive research on residential property investment in NZ that was self-conducted (I did not take a seminar).

What impressed me was that people who owned 30-plus residential properties often had a story about a property that made them money, with 100 per cent finance, from the first day of ownership.

I decided to build a property portfolio worth at least $2 million over the next six years using these three simple rules:

1) The anticipated rent must exceed what the principal and interest payments would be with 100 per cent finance, plus related expenses. Put another way, a property would have to generate a net profit.

2) If I cannot imagine the property being there in 50 years, I walk away.

I never get builder's reports, because I would never consider buying a property that made me suspicious enough to ask for one.

3) Always remember, "capital gain is promised to no one". Any property I buy has the potential of some day being owned purely by management work, without any of my own capital being put into it.

So, how did I do?

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