Buy cashflow, capital gain or a home?
Question from Vic updated on 24th December 2013:
We live in a rental home in Auckland and have $30,000 to invest. Shall we buy a property as an investment rather than buying one to live in? If buying a rental, shall we buy for cashflow or capital growth?
Our expert Ron Hoy Fong responded:
Hopefully you already applied for a pre-approved mortgage for your first home of up to 95% prior to recent LVR changes. Buy for capital growth. Your $30,000 deposit will be sufficient to buy an average home or unit to live in the central suburbs of Auckland. If you have extra rooms you could let them out to boarders to increase your cashflow to help pay the mortgage.
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