SearchGains or yields?
Michael asks:
(updated on Wednesday, September 30th 2020)
I have $250,000 to invest in what will be my first investment property. I live in South Auckland and my goal is to have a good passive income in about 10 years’ time. Do you think I should buy a more expensive property house in a more central Auckland suburb, or even Mangere Bridge, for capital gain? Or would it make more sense to buy two cheaper properties in South Auckland which would produce higher yields?
Our Experts Answer:
You have stated that your goal is around passive income and that the South Auckland properties will produce better yields. If this is your main priority, based on what you have said this may be the way to go. But make sure that you are calculating the comparison off net yields and also taking into account which option may require more maintenance to do a fair comparison. Also, ensure that you do have your goals correctly aligned with your investment strategy.
Most Read
| Unity First Home Buyer special | 4.15 |
| SBS FirstHome Combo | 4.19 |
| ICBC | 4.49 |
| Kainga Ora | 4.59 |
| SBS Bank Special | 4.69 |
| TSB Special | 4.69 |
| Co-operative Bank - First Home Special | 4.69 |
| Nelson Building Society | 4.69 |
| AIA - Go Home Loans | 4.75 |
| ASB Bank | 4.75 |
| Kiwibank Special | 4.75 |
| China Construction Bank | 4.95 |
| Kainga Ora | 4.95 |
| ICBC | 4.99 |
| Nelson Building Society | 5.09 |
| Westpac Special | 5.19 |
| Kiwibank Special | 5.19 |
| Co-operative Bank - First Home Special | 5.19 |
| TSB Special | 5.25 |
| ASB Bank | 5.25 |
| AIA - Go Home Loans | 5.25 |
| SBS Bank Special | 5.29 |
| Westpac Special | 5.49 |
| SBS Bank Special | 5.49 |
| BNZ - Std | 5.49 |
| AIA - Go Home Loans | 5.59 |
| ASB Bank | 5.59 |
| ICBC | 5.65 |
| Kiwibank Special | 5.69 |
| Kainga Ora | 5.69 |
| Co-operative Bank - First Home Special | 5.69 |
| Co-operative Bank - Owner Occ | 5.79 |
| TSB Special | 5.99 |
| SBS FirstHome Combo | 3.29 |
| AIA - Back My Build | 3.34 |
| SBS Construction lending for FHB | 3.74 |
| CFML 321 Loans | 4.20 |
| Co-operative Bank - Standard | 5.34 |
| Co-operative Bank - Owner Occ | 5.34 |
| ICBC | 5.39 |
| Kiwibank Special | 5.75 |
| Kainga Ora | 5.79 |
| TSB Special | 5.79 |
| Unity Special | 5.79 |
