Structure for increasing investments

Our Experts Answer:

I'd advise seeking taxation and asset planing advise about the best structures to use. Generally from a mortgage structuring side what we would do is take the lending on the current property up to 80% and then approach another funder who will become the funder that you have your new owner occupied property with and take this equity into your new purchase. Generally we would be recommending that the property that is now an investment property goes on interest only while the new purchase goes on principal and interest. In regards to the new property eventually becoming an investment as well, you definitely need tax advise in this area as obviously it is a personal home for a while but in the future the purpose of it changes. If it is only going to be an owner occupied property for a short period of time you may be okay keeping both properties at the one bank. If you look through the "books" section on the landlords.co.nz site there is a good number to choose from.