I’m thinking of investing in property, where should I start?
Property remains New Zealand’s most popular form of investment. Property investment is generally easy to understand, and has traditionally offered solid investment returns. Before you invest, you should have a clear long-term real estate strategy. For example, you'll need to decide whether you're looking for high rental returns in the short term, or if you’re more interested in longer term capital growth. 

The main benefits of investing in residential or commercial property include:
  • Capital gains – An increase in the value of your property over time thanks to a rising property market, or improvements you’ve made to the property.
  • Rental yield – The annual rental income you receive, less maintenance and mortgage servicing costs.
  • Tax advantage – In some cases, savvy investors can gain tax advantages through negative gearing, whereby they can deduct the costs associated with owning an investment property from their overall tax bill.  Please consult a taxation specialist for advice on your own situation.
Choosing an investment property is very different to choosing a home to live in. 
  • Match the property to your long term real estate strategy.  Consider whether you want to buy commercial, industrial, or residential real estate.  Decide whether you want properties that are ready to move into, or would prefer cheaper properties that require improvements.
  • Understand all the costs of property ownership. Aside from buying the property, there will be other expenses such as real estate fees, Council rates, property inspections and property management fees.
  • Think about protecting yourself with Landlord Insurance. This will cover things like unexpected repairs, lost income if you need to evict your tenants, or damage if your tenants turn out to be the wrong type for your property.
  • Calculate how long you will be able to cover the mortgage repayments for if the property is vacant, and factor this into your overall budget.
  • Shop around for the right loan, and make sure the one you select suits your strategy. For example, if you’re looking for short term capital gains, an interest only loan may help as this will lower repayments and increase your cash flow.
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