Property Investment advice
Hi,
We are moving back from the UK to start a family with about $300k deposit and another $50-$100k to come of residual income.
This is our first property and we've been looking for houses on the Auckland North Shore (Takapuna, Milford, Devenport) in the $1M GV valuation range and trying to pick something up for $700k - $800k. Which seems to offer a decent potential return.
However after the squalors of london living in the $1M house seems a bit too extravigant for us at the moment. So i've been toying around the idea of renting ourselves and renting out the house we buy to help cover the mortgage. And all the while have the house on the market to try and pick up a lucky buying at $1M and make a quick profit.
I've been trying to put togther a spreadsheet of the costs involved with this investment and have a few questions for those who may have done this in the past.
1) Is it possible to sell a house privately in the $1M range or will you not reach the right people? Ie end up only with savy investors looking for a deal. Also what are the agents fees like at that level? (I was guessing $40k?)
2) If you have a house on the market long term with a relatively high asking price (2 year period). Are estate agents interested in you? What are the marketing costs per month etc.
3) If you are in a fixed term loan and sell you house, do you still need to pay the banks break fees? What if you buy another house soon after?
Or if anyone has any other advice for me it would be appreciated.
Thanks
Andy