Here's a radical thought: An Investment should pay US, not us pay IT
Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
When you think about investing, do you get really excited at the thought that you can LOSE money every week?
Well, you are not alone. People have been doing this for years in New Zealand and thinking it’s a great idea.
They purchase a property and the rent does not cover the costs of owning it.
“Which costs?” you ask. Good question. Things like: Mortgage interest and principle repayments, Land rates, Water rates (in some cases), Body Corporate fees, Insurance, Property Management fees, and maintenance to name the most common ones.
An example of this type of property would be:
Purchase price: $700,000
Rent per annum: $30,000 ($600 per week x 50 weeks, allowing for two...