-
 Originally Posted by Joshuatree
I like KW's approach.Sell all your shares etc and try and buy the house for cash or as much cash as you can put in. Then take huge mortgage out and invest in NZX high div stocks like Gentailers for ex. You can see the attraction there but need to be pretty savvy / smart/ ballsy with this approach. Also rent it out /have flatmates for a while. Not for everyone but you can leverage things your way.
On another tactic ; a friend put in an offer a few days after a house was listed. That forces the auction to be bought forward to a week from the offer
No it doesn't.
-
Thats what happened to him or something very similar.Im all ears...?
Sorry to be clear the house was listed for auction ; he put his offer in and the Realestate firm were forced to bring the auction forward.They didn't like that.
Last edited by Joshuatree; 11-03-2016 at 07:30 PM.
-
Originally Posted by Joshuatree
Thats what happened to him or something very similar.Im all ears...?
No-one can force an auction date to change by making an offer.
-
Disagree with you at this point.I will verify his experience and report back. Maybe i missed a crucial detail.
-
Originally Posted by Joshuatree
Disagree with you at this point.I will verify his experience and report back. Maybe i missed a crucial detail.
Possibly the offer contained a time-clause and the vendor decided to bring the auction forward, which would be highly unusual once the auction date has been publicised. But an offer prior to the fall of the hammer does not force anything.
P.S. Are you sure the property was to be suctioned - sounds more like it was for sale by deadline treaty?
Last edited by fungus pudding; 12-03-2016 at 12:32 AM.
Reason: Added post-script.
-
It can't be forced, but if the offer is accepted by the vendor then the auction is brought forward and the offer then acts as the reserve and opening bid in the auction.
Originally Posted by fungus pudding
No-one can force an auction date to change by making an offer.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision. 
-
Originally Posted by Daytr
It can't be forced, but if the offer is accepted by the vendor then the auction is brought forward and the offer then acts as the reserve and opening bid in the auction.
Fair enough. I understand that is the practise followed by a couple of Auckland agents. It's certainly not automatic or essential, and it's certainly not common practise in this part of the world.
-
Junior Member
Originally Posted by Joshuatree
I like KW's approach.Sell all your shares etc and try and buy the house for cash or as much cash as you can put in. Then take huge mortgage out and invest in NZX high div stocks like Gentailers for ex.
Hey JT I am in a similar position I am currently looking at investment properties but have enough for a deposit in a savings account(which I gathered from selling down some of my portfolio) and the rest in stocks. But after reading your strategy I am considering doing the same and selling more so i can buy a property outright however when you say take out a huge mortgage to buy stocks how would you go about doing that? as far as i understand borrowing against your house to buy stocks would come with a premium interest rate right? or would you set up a separate entity to sell the property to and use the proceedings from the sale to invest whilst paying off your mortgage over a 30 year term? I am very interested to hear your answer. cheers.
-
Originally Posted by Rawiri
Hey JT I am in a similar position I am currently looking at investment properties but have enough for a deposit in a savings account(which I gathered from selling down some of my portfolio) and the rest in stocks. But after reading your strategy I am considering doing the same and selling more so i can buy a property outright however when you say take out a huge mortgage to buy stocks how would you go about doing that? as far as i understand borrowing against your house to buy stocks would come with a premium interest rate right? or would you set up a separate entity to sell the property to and use the proceedings from the sale to invest whilst paying off your mortgage over a 30 year term? I am very interested to hear your answer. cheers.
Talk to your bank about interest rate. You'll get a good deal. Generally it is the security you offer that dictates the interest rate - not your intended use of the money. The whole point in buying for cash, then raising a mortgage to invest to increase your income means your interest payments are tax deductible.
Last edited by fungus pudding; 19-03-2016 at 06:22 PM.
-
Junior Member
Originally Posted by fungus pudding
Talk to your bank about interest rate. You'll get a good deal. Generally it is the security you offer that dictates the interest rate - not your intended use of the money. The whole point in buying for cash, then raising a mortgage to invest to increase your income means your interest payments are tax deductible.
Right i did not realise this im just going off of the asb securities floating rate for margin lending and it is a good 1.5% higher than the interest im currently paying on my fixed rate
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Reply With Quote
Bookmarks