Seeking growth "loop holes"

Our Experts Answer:

Hi Leigh, well done on buying three properties in 12 months. Without knowing all of your circumstances I suggest contacting a mortgage broker instead of going direct to a bank. A broker will look at varying options across all banks and second tier lenders. The Reserve Bank has announced that there will be a relaxation on the LVR limits (probably within the next three or four months) and you may find that further lending will soon be available. Values on the North Shore as well as central Auckland suburbs have risen considerably in the last 12 months and you may find that your LVR has reduced and therefore have equity to top up your mortgages again. As to buying future investment properties you may find that you will have to change your area of investing. Houses on the North Shore have a tendency to give a lower yield than most other areas of Auckland. Your could try units which will have a slightly better return on investment and as many of my students are doing you could buy properties undervalued that need cosmetic renovations and if large enough add a small bedroom by converting the dining areas. Ron Hoy Fong www.ronovationz.com