Property Advice Expert
What rules are there around using a rental property as a business address?
I am a Kiwi that has lived in the US for 30+ years. Both of my parents recently passed away and I have just completed the sale of my parents' properties in Lake Tarawera and Wellington. I am now looking at an apartment investment in Mount Victoria in Wellington. I invest in the US in multi-unit apartments but I am new to investing in NZ.
What is the maximum loan to value currently offered by New Zealand banks? And which bank would you recommend for up to 12 unit properties?
The rents are currently under market and my plan would be to increase as leases roll over. I have read about the huge run-up in rents due to supply constraints: do you see that continuing for some time? Do apartment investors look purely at gross yield (50 x weekly income/value) or other metrics?
My wife and I were lucky enough to ride the wave in the very buoyant Bay of Plenty property market a few years back with a couple of units. We ended up cashing in and brought our forever home. It has a CV of $1.2 million and our debt is $350,000. Since then we have been treading water as we have a new baby and my wife has not been working. But now she is back at work and more money is coming in.
I know the likelihood of there being another boom, similar to the recent one, in the foreseeable future is slim. So my question to you is would you recommend that we increase our payments on our current mortgage or look to invest? We have been approved up to $600,000 to buy and have enough money coming in to pay our mortgage and help top up another.