Getting into investing
Question from Jane updated on 13th January 2020:
I have a freehold house in Birkenhead, Auckland. The last RV was $1.51 million. Given current low interest rates and the slowdown of the North Shore market, I'm thinking it might be a good time to look at investing in a rental property. What would be your advice on this?
Our expert Kris Pedersen responded:
Low interest rates are definitely making the cashflow side of property investment look better at the moment. But there is much more you need to take into consideration as well. What are you trying to achieve by investing in property? What are your timeframes? You have a great equity position but what is your household income like, as this will play a factor as well? Have a think about what type of property and what region will assist you best in achieving your goals. At a high level, it’s always a good time to buy as long as you buy right. However, make sure to spend some time determining this first.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz