CHEAPER TO BUY THAN RENT???
“A crisis is a terrible thing to waste.” National Business Review tells us today this is now the mantra of the Obama Administration and we suspect their chief advisors are following our website.
The strangest opportunity that has arisen out of the recession is that now it really is cheaper to buy an apartment than to rent it.
Mums and Dads with kids at Varsity read on…
A pretty standard one bedroom CBD suite (say $150,000) will rent for around $300 - $350/week.
Consider (if you had additional assets and could borrow the entire purchase price) the cost of interest on the purchase at 6%....$173/week. Depreciation will offset some of the other outgoings of Body Corporate and Rates which may be $60/week.
But you’re still cashflow positive at 100% gearing.
Imagine if you put some cash in?
Our overnight call rate on cash is now 3.3% down from 8%.
If you’re slowly starving with that hard-earned nestegg in the bank you should talk to us.
Apartments are a very liquid form of investment and it is common for mature investors (OK old people) to own three, four or five units, taking comfort that if a disaster (hopefully a wedding) comes up and dear old Dad has to fork out, it is easy to simply ring City Sales and say: “I need money.”
We will consider a handout, briefly, then suggest an auction.
And there’s an over 90% chance you will be sold in an extremely short timeframe.
And then we will both be happy.
(It’s Auckland 3030-601).
Remember and say it as you go to sleep…
BUY IN A RECESSION, SELL IN A BOOM, BUY IN A RECESSION zzzzzzzz
Martin Dunn AREINZ
MANAGING DIRECTOR
