Real Estate investing in New Zealand

[Julian Stewart]

Hi all,

I'm just starting out and reading lots of books / getting smarter. But the math is totally different in New Zealand from all the books I read.

In New Zealand a family home will cost you $500,000 and you can rent it for $500 per week.

Loan interest rates are 6%.

With this most of the formulas taught in these books do not seem to apply as the rent basically just covers the loan interest. In fact, from the investors, I spoke to here have to top up their rental properties with extra money each week and solely relying on appreciation. 

I'm wondering how common is this situation in other countries? 

And what is the best strategy for this??

Any advice would be much-appreciated thanks!