Buying a home to live in but renting 1st 4 years

Hi folks

Bit of a noob question here: What is the 100 to 1 ratio? (Goggle wasn't very helpful - kept returning results for 2 stroke petrol mixes lol)

Also I just want to make clear I am by no means trying to evade tax - that's something I have always advised strongly against both on moral grounds and as a survivability issue (I.e. if the IRD catches you, you are dead in a manner of speaking) I just don't want to pay any more than I have to in tax hence all my questions on what is and isn't taxable. I have been looking at the IRD site as well which is a bit of a mine field. Your patience and help is appreciated.

You may have to look at 100,yes 100 houses to find your house.My wife and I at one time looked at about 80 after selling our house before we brought another house.We ofcourse ended up with a great buy,but at times it was very depressing,as everything seemed to be just that bit out of our price range.

Ah thanks Percy - I take it that's actually going into 100 houses for an inspection as I'm sure I have been through 1000 in the property advertisements?

Even with that only one or two have made me think that it would be a nice house to live in without seeing it. I think potential sellers aren't putting their houses on the market. That said there are a few good deals - I went past a property last Sunday and noticed it was for sale in a nice area. Researched a bit into the price and thought it was very good for the area (215k) Three days later it had sold lol.

A lot of people decide they want to buy a house.First port of call is the bank,who tell them with their deposit,earnings, the bank will lend them 90% on a $210,000 house.So,first, second or third house they see in this price bracket they buy.Happiness.!!!!
With you looking to buy in the next 4 years,you have plenty of time to make your house an investment.Research.
Location,bus routes,schools,mall and services,we all agree on.I also place a lot on how the house is sited for the sun.You will want a place where you can have indoor/outdoor flow.You will need to look at whether the drive is shared.There are a lot of other things you will find are important.
Take your time,look at 100 houses,know your section of the real estate market as well as, or better than an agent,then you will get the result.Do the first one right,and you will enjoy the benefits of realestate investing.With gearing,knowledge,good sense you will become a wealthy property investor.

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Originally Posted by RazorX

Hi folks

Bit of a noob question here: What is the 100 to 1 ratio? (Goggle wasn't very helpful - kept returning results for 2 stroke petrol mixes lol)

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They might be trying to tell you to buy a lawnmower instead. :p

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Originally Posted by fungus pudding

They might be trying to tell you to buy a lawn mower instead. :p

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At a ratio of 1 to a 100 that poor 2 stroke mower won't last long:)

On a more serious note its good to see all the posts around property investment!!!! better watch out it might set off the 'whats the best investment' argument :mellow:

Robo with modern oils & modern engines it is quiet common. A few years ago you would not have believed in 50 to 1 ratios but now it is the norm

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On a more serious note its good to see all the posts around property investment!!!! better watch out it might set off the 'whats the best investment' argument :mellow:[/QUOTE]

Not prepared to go down that road..!!!!!!!!! However,I do note successful property investors make successful sharemarket investors.!!!!! lol.

Hmm well I have been doing research, read a book or two (Read Martin Hawes 'Save Money on Your Mortgage - very good) and did some sums

Seems that no matter how I work it with the properties around here I cannot make it break even even with an interest only loan. (It was suggested to me, that if I wanted to go down this path I should get a property that will pay for itself.) So I asked around and it seems that until most of the mortgate is paid off rental properties make a loss here.

Anyways.... I'm going to save up a deposit and keep my eye open while still expanding my knowledge of the housing market. The market seems fairly flat at the moment, although interest rates are prediced to rise to 5% by 2013 (I believe that is the correct date)

I have had a look at commercial rents... now if one could purchase one of those it might turn a profit... hard to live in at the end of 4 years though lol. Still thats an option for my investment portfolio to keep for the future. :)

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Originally Posted by RazorX

Hmm well I have been doing research, read a book or two (Read Martin Hawes 'Save Money on Your Mortgage - very good) and did some sums

Seems that no matter how I work it with the properties around here I cannot make it break even even with an interest only loan. (It was suggested to me, that if I wanted to go down this path I should get a property that will pay for itself.) So I asked around and it seems that until most of the mortgate is paid off rental properties make a loss here.

Anyways.... I'm going to save up a deposit and keep my eye open while still expanding my knowledge of the housing market. The market seems fairly flat at the moment, although interest rates are prediced to rise to 5% by 2013 (I believe that is the correct date)

I have had a look at commercial rents... now if one could purchase one of those it might turn a profit... hard to live in at the end of 4 years though lol. Still thats an option for my investment portfolio to keep for the future. :)

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And it's a much better option than residential property will ever be. Keep your eye on that market.