In the 10 years we have been helping Kiwis get ahead financially by investing in property, one thing that has become abundantly clear is that there is
no such thing as one size fits all when it comes to purchasing an investment property. You might be surprised that many people launch into property
investment without even a basic understanding about rental returns, return on deposit, or an investment plan. Also, many Aucklanders might feel that
buying a home is hard enough, let alone being able to afford to buy a rental property.
If you have owned your own home for a few years, you might already have enough available equity to fund a deposit on a rental property, so you don’t
need to worry about trying to save for another house deposit. Now you will just need to have enough provable income to enable you to service a
mortgage on a rental property in addition to your current mortgage. How much you can borrow will depend on your current financial position. Do
you have any other debt? Do you have dependents? Any credit cards (even if you don’t use them), what sort of rental return are you looking for
etc.
If you don’t yet own your own home, but have saved a deposit (or have help from the “Bank of Mum & Dad”), you might be better off to consider purchasing
a rental property before you buy your own home. Let’s face it, rent in Auckland tends to be a lot cheaper than paying a mortgage, but even though
you might live in Auckland, there are plenty of other areas around the country where market rent is enough to cover the cost of owning the property,
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