Investment property comes first?
Question from Sharon updated on 21st August 2012:
I do not own a property in New Zealand but I am a permanent resident here. Am I allowed to purchase an investment property without first buying my own home?
Our expert Ron Hoy Fong responded:
Yes, you can buy as many Investment properties as you like. My son and daughter both purchased more than a dozen "buy and hold" investment properties before their 30th birthdays (whilst living at home). I currently have many students in my property coaching class renting apartments, sharing accommodation and boarding in houses. One even was rooming at the YMCA Hostel for two years purchasing five investment properties. My suggestion is to do likewise so as to produce immediate cash-flow which will help you buy more properties in the current market.
However, be mindful with the timing of the property market. Ask yourself would it be cheaper to rent accommodation than buying a home or would it be cheaper to buy a home and pay the interest on a mortgage of an equivalent size property? This question will depend on where you are currently living and its proximity to your needs such as life style and work.
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.