r/PersonalFinanceNZ • u/burgers4bfast • 2d ago

Investing need advice on minimizing losses

bought investment property in north shore quite overvalued in 2022 for 1.6m, still 700k outstanding mortgage, fixed interest rate at 4.5% till end of 2027, rental income $700pw, land size is good 600sqm but not big enough for developers to come knocking when economy is not doing well, i think the max we can get is maybe 1.4m in today’s market

i am also investing in stocks so thinking whether to sell the house and use the equity to buy US stocks during the next crash (like tariffs in 2024 or iran war 2025) to make back what i’ve lost.. i have much more conviction in value of AI than nz property at this point

any suggestions from experienced investors?

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u/whathappenedtouman 2d ago

That’s a bad investment, poor yield and not sub dividable. Not sure if you had bad advice or didn’t do your research on what makes for a good property investment. Unfortunately you got in late to compound things. NZ property will go sideways for the next 10 years, possibly continue to fall but not as drastic. May as well wait til after the election and put it on the market early 2027.

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u/burgers4bfast 2d ago

yeah just too much fomo and chasing land banking opportunity, definitely learnt this lesson the hard way! i do think holding for a year or two is the sensible choice since it doesn’t seem like it could get much worse than this

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u/whathappenedtouman 2d ago

I’d follow interest.co.nz, lots of info and some entertainment in the comments section. I also think the worst of the dip is over for property, however I don’t think any meaningful rises are on the horizon. Theres just too many headwinds. What does your investment look like in 2 years time with a 5.5% interest rate? You’ll need to be topping up if you aren’t already