Would you be happy to stop at just one investment property ?

FOR SALE - PREMIUM AUCKLAND REGIONAL CENTRE

Is one property enough to provide enough income and keep you busy ?

Buy this on a 8.6% net yield borrow at 4.3% so 50% of the net rental is profit !

 

That suggests sale price of >$100m NZ. So, the deal would require >$30m down (70% LVR??). Do you think you could borrow $70m at 4.3%, or would rates on a loan of that magnitude be higher?

(If fact, rates could be lower. Banks would fall over themselves to get a deal like that up!!)

To answer your question, yes, I would be quite happy with that property and nothing else.

 

WALT of 8.2yrs I actually think the funding cost will be lower I think 4% (The 4.3% is based on $20m-$25m borrowing. The best commercial funding I have seen currently is 3.71% but lower LVR)

 

For this property if it returned what is should, for me of course it would be enough, but I wouldn't stop.

 

Really depends on your situations.

In answer to your question, no, I wouldn't be happy with 1.

 

Yeah that is what everyone i personally speak to say.
It does not matter how large the deal ...always want to do another one !

 

The number is irrelevant, the outcome is all that matters. If your goal is passive income of $100,000 per annum from property then does it matter if that is achieved in 1 or 20 properties.

Personally give me less any day of the day week, far less headaches! Maybe not 1 given your eggs are in all 1 basket but I would say 3 is a sweet spot.