Author Topic: Advice on buying my first house(s)  (Read 1029 times)

kiwi_saver

  • 5 O'Clock Shadow
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Advice on buying my first house(s)
« on: April 10, 2017, 02:28:55 AM »
Hey from New Zealand

Would really love the wisdom of the crowd on this one.

I'm looking to buy my first home, but am also considering buying a 2nd rental property, or investing in an index fund.

First house price 220-300k
Rental property 120-200k

I have access to around 200k, no other debt, can pay down debt at about 3k a month, and am 28 ( if that's relevant?)

Bank requires at least 20% deposit on first home, and at least 40% deposit on the rental.
Mortgage rates around 5% fixed 2-5years and 5.8% floating

Options i'm debating
1. Just buy a house and either pay cash or pay off the mortgage within 4 years.
2. Split my capital across 2 houses and take a longer mortgage
3. Buy a house but invest some of my capital elsewhere.

I think I'm tossing up mostly between 1&2 as I don't see my net return from investments being higher than the interest rate on the loan over say 5-10 years. But maybe I'm wrong.

Hopefully that's enough info for this hypothetical scenario, if not let me know what other info to provide.

Thanks in advance :)


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kei te pai

  • Bristles
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  • Posts: 430
Re: Advice on buying my first house(s)
« Reply #1 on: April 10, 2017, 02:39:06 AM »
Hi there. I would suggest option 3, NZ housing market is overheated. We might be coming up to Easter but you dont want all your eggs in one basket, especially that one.