Page 5 - Newsletter November 2020_Neat

the bank’s criteria. with property I’d say you only need to
own your own and one other house.
You might have to top it up a little bit
initially, and spend some money I know from the people we work with
bringing the house up to Healthy in property management that you
Homes standards, but over time the don’t need multiple properties.
rents will keep going up - and since
2010, interest rates have been going Well, that’s unless that’s your goal.
down.
If you can recycle the equity in your
And the price of your house is likely to current property and borrow some
have gone up, so if you bought money from the bank, you may not
something 10 years ago for half a even have to pay a deposit.
million, you’ll likely find it’s now worth
a million. And you can always do up properties.

Your mortgage might be $300,000, so There’s always something you can
if you sell it, you’re going to do okay. add value to if you have time, and
you’re good with your hands.
You don’t even have to sell it. You
could just earn an income from it. The If you want to own a rental property in
rent will probably always go up, but New Zealand, and you already own a
the mortgage over the same time will house, have a good deposit or a good
go down. income (and the bank likes you), I’d
say it’s entirely possible to do just that.
You could be getting $700 a week in
rent and only paying 2.5 per cent in
interest, so you’re actually making
money from it.

When is too late?

People wonder when it’s too late to
buy a property. People now live to 80
or 85. My generation could live to 100,
so in your fifties you’re only halfway
through.

I think it’s good for people to have
investments in different baskets, but

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