Q. I am 52 years old. My parents died six years ago and I was the sole beneficiary. I retired and have been living mainly off the revenue ever since.
I own my own home - it is freehold - and I also own two rental homes. One is freehold and the other has a $50,000 mortgage. This costs $348 per month principal and interest over 25 years. I am four years into the term.
Sunday, November 30th 2003, 12:55AM
by The Landlord
The rentals are bringing in a total of $2780 per month before expenses. Mortgage, rates, insurance, maintenance and repairs total about $850. Roughly $100 of that is mortgage principal....
A. Brace yourself for one of the longest answers ever in Money Matters! There's lots to say.
Many people would be content in your situation. And, as it has turned out, being overly invested in Auckland housing has worked well for you in the last few years. But that might not continue. Let's look at the performance of your rental properties.
In considering expenses, we won't include the principal paid off your mortgage. That's a saving rather than an expense. It adds to your wealth. Your properties, then, are bringing in about $2030 a month after expenses, or $24,360 a year.
