Rentals.co offers property management solutions to owners of homes in Whangarei and the Far North, while adding advice on development, valuations and growing the value of the property.
Venus Chan is an example of a Kiwi who was able to capitalise on owning an initial property then get rental yield flowing enough to be able to afford a second rental property – in this case, both of Venus’s properties are in Auckland. Venus is living in Singapore now but took the time to share her property investment story.
“I bought my first property in Eden Terrace in 2008,” Venus recalls. “It was $370,000 at that time; I can rent it for more than $550 a week now, which is lower than market value given the tenants have been living there for more than four years. The rent can easily cover the mortgage.”
“In 2016, I purchased another property in Kingsland, using the first property as collateral since the mortgage of the first property has been paid off.
And does owning two rental properties get the mortgages on both paid off more quickly?
“I have not calculated this properly, but I do believe so as the rental return in Auckland central areas is positive. Demand is greater than supply in prime locations (close to CBD).”
“Body corporate fees are about 4k a year, accounting is about 1.5k a year for 3 properties (2 apartments, 1 house), and the property management fee is 6% of rents received.
“The property management company I use is great. They only contact me when there is any decisions required for maintenance. The tenants are suitable as I always look for longer term, reliable one rather than pursuing higher rental income.”