Getting into investment
Question from shane updated on 9th February 2016:
I would like to know more about how I can get into investment property. I recently purchased a house in a nice area of Auckland. It had a recent CV of $850,000. However, as with most homes, it went to auction where I paid $950,000.
I paid cash and I have no mortgage. In addition to the house, I have $200,000 in liquid funds that I would like to use to invest in property. I also have an annual saving capacity of around $50,000 (NZ).
I am curious about getting into investment property. I hear you can do all sorts of things such as use equity, etc. But I don't know much when it comes to such matters. For this reason, I am wondering where a good place to start is?
Our expert Ron Hoy Fong responded:
Congratulations on your Auckland purchase! It appears that you have a reasonable amount of equity and the serviceability to support several mortgages over several properties.
While we still have a couple of years left in the current boom market before it peaks, I would like to suggest the following people (including myself) to help you fast track to build a successful investment property:
1) A property coach to assess your potential, maximise your investing knowledge and to set goals.
2) A lawyer to set up a family trust.
3) An accountant to set up an LTC or ordinary company and for taxation purposes.
4) A mortgage broker to help you with lending.
Build a team of experts around you that are knowledgeable and who, preferably, have investment properties themselves.
Ron loves to share his passion for property and his coaching course provides one-on-one mentoring and support that will empower you with tools, strategies and valuable insights so you can achieve investment success and become a property master.