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Articles by Salesh Chand

Salesh Chand

What am I doing in the market with property investing?

Recently, I have been asked by several property investors about what is happening in the market and what I am doing.  I still believe property investing is one of the safest forms of investment to create passive income and intergenerational wealth, and I am still actively investing.

Here’s what I’ve been up to:

Buying Properties

I’ve been submitting around 5-10 offers every week, targeting cashflow positive, good quality, discounted properties. I love generating instant equity in my portfolio by buying under market value – even though it takes time to find the deals.  

When properties require renovation, we negotiate the price to ensure the return remains cashflow positive.  By "cash-flow positive” properties, I mean those that generate enough income from rents to cover interest, operating expenses, and sometimes even the loan principal repayments.  

I am working with a bank interest rate of 7%, allowing $10,000 per property for operating expenses in my calculations.  I’m finding properties in the regions, where the purchase prices are lower, but the rents are comparable to those in Auckland.

Working Capital

Over the last three years, I’ve focused on building working capital within my portfolio.  This means establishing facilities with various banks that allow me to access funds for projects when needed. By using multiple banks, I can finance projects without requiring additional funding. 

If you have significant equity in your portfolio, I suggest contacting your banker or broker to arrange additional facilities, such as increased overdrafts, offset accounts, or higher credit card limits.  Access to funds during a downturn allows you to safely purchase more deals and provides peace of mind about your portfolio.

Having working capital is crucial for any investor.  I worked with Kris Pedersen Mortgages to set up these facilities for my portfolio.


I have spent considerable time updating all my insurance policies. For years, I have advised people to ensure they have the right coverage for their homes or investments.  

For example, if you bought a property 15 years ago for $400,000 and insured it for that amount, the replacement cost might now be $1 million.  Therefore, it's essential to adjust your insurance to reflect the current market value or replacement cost. At GRA we use Initio, who offer great cover at good prices – and they give a discount to friends of GRA. Find out more and get a free quote here

Additionally, it’s important to have life and health insurance.  If you suffer a left-field event that means you can’t work for a while, you want to make sure you don’t lose your assets at the same time. I use Steve Munro from Risk Direct Insurance ([email protected]), one of the best insurance brokers I have met.  He has assisted many of my clients and me in securing the right cover.  He offers free reviews of your current policies (if you have any) and makes recommendations.  I suggest contacting Steve to either establish the appropriate cover or review your existing policies.  This is one of the best investments you can make for your family.


Every stage in the property cycle presents opportunities for property investors, but you need to base your decisions on the numbers and what the market is doing. For help with this, sign up for my regular free Property Investment webinar

If you’d like assistance with any of topics in this blog, contact us at GRA – phone +64 9 522 7955, [email protected] or via our online form

Salesh Chand
Salesh Chand
Partner/Business Advisory Director
© Gilligan Rowe & Associates LP

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

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