It’s hard to play a game where the rules change as often as the weather, so keeping up with any credit policies is crucial. We keep our paw on the pulse and whether you're just starting out or looking to expand your empire (evil or otherwise), with Squirrel you'll get:
Not sure where to begin?
Our team of experts have first-hand experience in property investing, and love chewing the fat about property.
Part of what makes us unique is we've got relationships with all the major banks, non-banks, and access to over 5,000 P2P lenders. More options means a better deal.
Our Mortgage Advisers are paid the same regardless of which lender they recommend, so the only motivation they have is to make you better off.
Having the right investing strategy can save you a packet. It costs nothing to sit down with us, come up with a plan and bounce ideas around.
Not only do we have access to more banks than other brokers, but we have a community of over 5,000 peer-to-peer lenders for a custom solution if you don't quite fit the bank's box.
Traditionally, going to the main banks for lending has always been a no-brainer. But fitting into the 'bank's box' and accessing their funds has become trickier over time.
New Zealand has lots of well-established non-banks that are hugely market competitive, more approachable and more open to lending.
Their interest rates may generally be higher, but under current credit conditions, investors must understand that accessing money is going to come at a slightly higher cost.
Everyone has to start somewhere, so rather than launching straight into building a 5-storey apartment block complete with underground parking and tennis courts, it's smarter to start out a bit smaller and closer to home.
Making this decision should be based on some goals and a good strategy. Ask yourself honestly: does my house fit the bill? Is it likely to yield good results or go up in value? If the answer is no, then you’re better off selling up and using the money to buy a better investment.
When you buy a new home, you might want to keep your old place as a rental. Since there are significant costs to buying and selling, this can make good sense – but only after you’ve answered a couple of key questions.
A granny flat under your house can be an easy way into property investment. They make sense on so many levels and can also help you buy in an area you might not otherwise afford. It’s a great idea to look for actual grannies to live in your granny flat. They tend to value the security of having a family close by, are reliable and quiet and much more tolerant of family noise than other types of tenants. Good old nan.
Don’t rely on the market to push the value of your properties up. You need to add value to your properties so you have more equity to borrow against.
Sacrificing higher rents in the short term can be a hard decision, but it’s much smarter to invest in a lower quality property where you can own more equity.
These are apartments of less than 45sqm and properties with more than 3 incomes. Get rid of them, even if they’re cheap and give you good rents; banks will typically only lend up to 70% of their value, so they’ll hold you back from borrowing what you need.
The debt on a rental is tax deductible so you’ll want to put as much into your investment property as possible. The way to do this is to sell your existing home to a Look Through Company or an LTC, which you own. The LTC buys the home at a fair market price and then borrows 100% against it. You then provide a personal guarantee to the lender using your new property as additional security.
You use the proceeds of the sale to clear the mortgage on the old property and put any extra into your new home. In this way you can move the equity from your old property to your new home.
Mortgage interest rates seem to change with the wind so it pays to stay up to date. Because when we’re talking hundreds of thousands of dollars, a fraction of a percent change in interest or repayment rates can save you a packet. This could mean retiring to your super yacht a few years earlier than planned.
Before you get carried away with visions of taking over the world, soak up all the knowledge you can (and impress your friends with how clever you are).All articles
The most logical place to start when dipping your toes into the property development space is subdividing a property. But although it might be a logical place to start, it’s not going to be easy or cheap. We share our tips and valuable lessons from the University of Life below.
Subdividing a property is a great way to instantly add value, but it’s expensive.
Councils will see you as a way to cover their budget shortfall with a “development contribution.” These fees average around $20,000 per dwelling. Councils will also sting you with a bunch of compliance-related costs. In Auckland, for example, you’ll pay about $7,000 per dwelling just to connect the water.
To subdivide a property, first you need to:
When looking at a property you could subdivide, consider:
We don't just sit here and tell other people what they should do; there are a few seasoned investors within Squirrel, the obvious one being Squirrel founder, JB. Watch this 5 part series about his experience of moving a house (literally picking it up and moving it to another location), why he did what he did and what he learnt.