Not sure how many on here read the "NZ Property investor mag" but now and again I get an issue and as I've enjoyed many a good investment return in NZ Property I like to keep up to date with present market >>
Now in the latest issue I read a piece on "Why you should take interest only loans over your investment properties" and forget about paying off the debts as NZ property only goes higher in value on average 10% pa so just use the increased equity you get and buy more and more properties on I.O and never pay the properties off.
Surely we must be getting to peak Property love here in NZ as looking over the average yields nationwide on current average selling prices we see yields of 3-6% so no wonder I.O lending is all the rave as after an ever increasing insurance/rates costs taxes etc not going be much if capital left to pay down any of the actually property purchase price .. pure madness IMHO
seems like the core investment plan of many is BUY and hope for Cap gain as in the past it worked great so why would it top now
Reply With Quote
Bookmarks