RSS Feed

Young Investors Alert: How To Go On Your OE And Continue To Invest In Property

Friday, July 26, 2013

By Karen Phelps

Your OE or pursuing your property investing?  It’s a hard choice but fortunately one you don’t have to make.  It is possible to invest in property while doing your OE.  Could you picture yourself sunbathing on a beach in the Caribbean while investing in property?  Or perhaps partying with other backpackers in Rio knowing you can return home and buy another house?  It is possible and here’s how.

STEP ONE - save up a deposit for your first house

However you choose to do it this will mean putting in a few hard yards.  And it may surprise you to know that you don’t need an amazingly high paying job – you just need to know how to budget and make smart choices.  For example do you really have to rent a room/house in Remuera or Ponsonby?  Could you live a bit further out where rents are cheaper?  Can you car pool?  Can you cook rather than eating out all the time?  There are all sorts of ways you can save which over time will equal a nice first deposit.

STEP TWO - feel the fear and do it anyway

As a newbie investor you will no doubt be terrified of making that first purchase.  Don’t worry – we’ve all been there.  And there’s always a reason not to buy.  Perhaps you think you will wait until you meet that special person, until you’ve saved a bit more money, until…you get the picture.  Think like that and you’ll end up an old person living with fifty cats in a council flat in Clendon.  Do your research, investigate the market, go to property seminars and read books then bite the bullet and search for the right deal.  Remember you are not buying a house you want to live in - you are looking for a house you can afford, that will be low maintenance, easy to rent out while you are away and with the possibility of capital gains.  When you find that deal BUY.

STEP THREE – aggressively pay down the mortgage

You want to pay this first house down enough so that while you are away tenants will cover your costs for you (including property management fees) so that you don’t have to worry about it.  Choose a mortgage with terms that allow you to pay down the mortgage without penalty.  Get in flatmates to help you pay it down quickly or, if it proves better financially, just rent the whole house out.  When you have paid it down sufficiently then head off on your OE.

STEP FOUR – earn while you travel

This will put you in a great position for when you return.  It’s more than possible to work from anywhere in the world today if you choose the right job.  Examples include teaching English online, freelance journalism, photography, web design, data entry…I’m sure you can think of others.  Or if you work a regular job you might choose to head to a higher paying country such as the UK and take advantage of exchange rate benefits.  Whatever the case, if you can earn while you are away enjoying your OE and travelling to far flung destinations you will be able to hit the ground running when you return to your property investing back home.  But while you are away don’t be a passive investor - keep in touch with what’s happening in the market with APIA TV so that you can stay ahead of the game.

STEP FIVE - come home

When you return home your mortgage will have been paying down nicely for you while you are away, the market could have gone up depending on the duration of your trip giving you some nice capital gains and you may have even been able to save some money.  Now it’s time to buy your second investment property and be thankful that you started before you went on your OE and are not now struggling to enter the market for the first time or, worse yet, shut out of the market forever, like some of your mates.

Recent Posts


Jeff Bezos meth contamination lvr speculator Holler RBNZ privacy HSWA Tribunal case study wins heating Landlording Property (Relationships) Act election 2017 rta cash-flow trust housing affordability p lab government asbestos Kris Pedersen Mortgages and Insurance HHGA meth LIM negotiation subdivision television tenancy tribunal warren buffett Case study market rent scotney williams anz shower dome heater landlord recycling equity Gluckman Editor's Choice Sponsored post trademe return property cycle off the plan beginner investor parry v inglis house prices insulation damage cat reserve bank investment strategy buying rules unitary plan relationship legal tax equity HHS debt enforcement sublease property maintenance CCC advice short-term rental financial advisers act principal and interest tenancy services Market report termination structure finance renovation mortgage rental wof rent bond form rta reform gluckman report ask an expert covid-19 cgt bad tenant buying khh skill shortage minor dwelling twg report bond ird capital gain mindset trespass robert kiyosaki letting fee Must knows ventilation data security property management worksafe extractor fan positive cash flow partners Q&A tenant insurance Investor story fixed-term tenancy management buyer's agent building income wealth creation CoreLogic business tenancy issues boarding house Level 4 auckland How to initio development ring-fencing Standards New Zealand interest only productivity sale and purchas inspection investor auckland council market water bill rent increase ocr Must know clnz personal growth DTI nzpif rental market Question and answer interest rates airbnb Guest blog letting holiday house sale and purchase housing bubble RTAA 2019 yield Investment tip banking first home buying warm up new zealand education TCIT winz watercare property value maintenance rent arrears property smoke alarm


Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 

Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited