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3 Views· 09 February 2022

How to buy FIRST INVESTMENT Property in New Zealand



Calculate exactly how to buy your first investment property, know what you need to be able to afford the deposit and repayments. This video goes over the 2 main issues someone is denied by the BANK for getting a loan which is a DEPOSIT and SERVICEABILITY.

Deposit: To get an investment property loan, you need to pay cash upfront called a deposit. This value changes but currently it is 40% for a RENTAL property in New Zealand. There are special cases where you can get less but this does not cover that like new builds only needing 5%. For me, I was able to use my first home that I live in to use as leverage to get the second mortgage and unlock the equity. This however means both houses are tied to the same bank as security, but this was the only way to get the loan.

Serviceability: With all mortgages, the bank wants to make sure you can afford to pay for the weekly repayments. By making sure you are not taking on too much debt, they have a rule in place to make sure that the weekly mortgage payments do not exceed 35% of your total household income. This rule can limit you borrow significantly when looking to buy an investment property. This is also why it’s hard for single or solo people to buy a house. This value also changes so talk to a broker to get current figures. However, the best bit is that they bank takes into consideration how much the rental property can be rented for, and you can add 70% of this amount to your weekly household total, which might be just what you need to afford the bank loan.

Few tips at the end that only a small portion of houses for sale actually should be brought as an Investment Property which is not GENERAL information but is a MASSIVE consideration as this is the part where you either MAKE or LOSE MONEY.

So best of luck with buying your FIRST Investment property and wait for the capital gains to come in.

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Buy a house, more in depth video here:

Introduction video:

Disclaimer: This video is for entertainment purposes only. This is not to be considered as financial advice, seek a professional or a registered real estate agent if needed.

Use of sound credit, see links below:
Intro Music: From www.bensound.com
Sound: From (www.jshaw.co.uk) of Freesound.org

#NewZealand #PropertyInvesting #RealEstate

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