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 am thinking of renting out my property so that I can keep my child in the current school zone. However, the rent difference is not in my favour and I will have to top up my mortgage and possibly pay rent at a higher weekly rate. In a single income household just managing the mortgage (principal and interest repayment), should I keep to rent or sell in the current dampened housing market?
Is property investment in Auckland still worth it? I am currently looking at a property in the range of $500,000 to $600,000 with a weekly rent of around $500. With a loan of $500,000, after rates, taxes, and all expenses, I will be looking at a weekly cash flow of around minus $200.
How can I justify such an investment? Is there something I am missing? I always hear talk of people using property investment as a positive cash flow but it seems highly unlikely in Auckland.
We are looking to purchase a property in Auckland. But we want to buy with a view to investment and we aren't sure of what strategy to take. Should we buy a more expensive, inner suburb family home and leverage off it as its value rises down the track? Or should we buy a cheaper family home further out and then buy a rental as well? What do you think would be the better strategy in the long term?