Seeking growth "loop holes"

Question from Leigh updated on 5th September 2014:

Hi Ron, my husband and I (42 and 45 years old) have bought three investment properties in the last 12 months. We are currently sitting on lending of about 85%. We are both in corporate full-time employment and both earning good salaries. One of our properties is on Auckland's North Shore (brand new house with good views) but it costs us about $250 per week to top up the mortgage payements, which we can afford. How do we go about buying another property with our lending being at the level it is. Are there any loop holes that I can look into?

Our expert Ron Hoy Fong responded:

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

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.

Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer