Is Investment Property Viable?

Investment opportunity is everywhere throughout New Zealand. There are many questions that investors might have regarding investment property. Investing in New Zealand requires investors, consultants, financial planners, as well as finance specialists to directly assist with investors.  Whether the investor is an individual, company, trust, or self-managed super fund, it is through the combined assistance of the above professionals that the investor will be able to select properties which are suitable. It is necessary for one to examine local buying opportunities as well as look for pre-purchase advice, and browse through financial analyses before purchasing their investment property.

There are investment consultants who offer, alongside their other basic services, offers for members such as educational lessons, workshops, as well as information sessions which provide financial services at the touch of a button as well as loan structures, and discounted rates for legal services. By using consultants, an investor can receive advice from other active investors as opposed to real estate agents.

With unbiased approaches, one can determine the saved taxes as well as expected income so that budgeting is not an issue.  By tracking the movements in any local residential real estate market, independent or consulted property research is the best foundation for an investment property portfolio.   Other research which should be conducted includes looking into economic indicators, demographic reports, target market reports, rental and return analysis, suburb profiles, and looking into future trends.  Australia has shown an increase of over 70% on investment properties, earning the investors an average of $37,000 per annum. By having sufficient assets, one can borrow against them and not have to pay cash deposits.

Growth for these investments continues each year building upon the year before as the value of the property continues to increase. This means that each year the exponential growth of any investment property is accelerated.  Wealth in property investment throughout New Zealand   is slow initially, but a prudent investment will compound over time offering an abundant return. Therefore, having the right information, time to invest, and patience are the three vital components to building a good investment portfolio. Experts have predicted that the presently falling rates will only continue to fall next year which is pertinent to any loan strategy because with the current environment, a variable rate loan would be considered the most prudent.

This type of loan works well with any future drop in rates.  Interest paid on a loan can generate tax benefits for investment property.  If one is self-employed or a PAYG earner they can claim the interest.  Therefore, by owning investment property, one can pay off a current mortgage while simultaneously affording travel expenses and children’s education expenses.  Currently the best places for property investment are Coolangatta, Townsville, the Gold Coast, and the Red Cliff Peninsula. No matter where one is investing, property investment establishes future wealth through a maintained portfolio which grows each year.

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