Investment - Commercial - residential property
Looking to take another investment in property after downsizing our personal Morg... to zero (thanks to buying a cheaper family home)
and with interest rates at record lows and looking like staying there for much longer i would like to add in some passive cash-flows
talking with the banks we should be able to borrow upwards of 700k
come across a few commercial properties one mixed use(retail/food/apartment)... another industry (has placemakers on lease)
I've also been keeping a good eye on the higher yield residential market down south ...
I personal don't see the point investing in property unless the yield is high 8%+ ...so most likely I'm not looking at great Capital Growth areas..in Central Otago
I am swaying towards commercial ....which even if I do go down the residential road will most likely have to be a block of flats so most likely classed as commercial ...
the Neg I see towards Commercial....must pay GST on top of company TAX rate ....less Capital upside ...more risk of nil income on lost tenant or bankrupt business etc
But then thinking of trying to get the same income to Capital in Residential houses ....I'll be buying many old houses dealing with many more tenants in the likes of Invercargill -Dunedin ...etc
in no hurry ....but do like the idea of $300-$400pw in passive income