Why build investment property over buying existing
What if we told you buying an investment property wasn’t the best way to build wealth?
It’s certainly up there, but building offers countless benefits that make it the best option for investors of all shapes and sizes, particularly those who are just starting out. Goodlife’s strategic alliance with Golden Homes, one of the country’s leading home builders, aims to make the most of this by streamlining and simplifying the process of building your investment property.
Here are a few compelling reasons why this is a brilliant idea for you.
No LVR restrictions
LVR restrictions instated late last year requiring a 40 per cent deposit have made it hard for investors, causing an abrupt slow down in the New Zealand property market. By building your investment property you are exempt from these laws, meaning that with an experienced mortgage broker by your side (like us), you may be able to build with a deposit as little as 10 per cent!
That means less time spent waiting and saving and more time reaping the considerable benefits of property investment.
Every property investor must pay tax, but why pay more than you have to? Building your investment property is extremely tax efficient, as you pay less tax than if you were to buy existing. Holding costs such as interest payments during the build are tax deductible and brand new chattels will offer far larger depreciation deductions.
In the end, this means more money in your pocket and less paid to the IRD. This all assists in funding the cost of owning the property, meaning less impact on your pocket!
Better quality tenants
Here at Goodlife Financial Advice our mission is to help Kiwis secure a better financial future.
The quality of your tenant often dictates the success of your property investment and the quality and age of your property usually determines the tenants that your property attracts. That’s why building a property with Golden Homes is such an effective strategy for property investors.
By building a brand new home of the highest quality, you’ll attract the most reliable and trustworthy tenants, which is an important step towards investment success. With reliable tenants in place you’ll experience less vacancies, less ongoing costs and a steady stream of rental income.
Greater chance for capital gain
Capital gains are the holy grail for property investors and fewer properties appreciate in value quicker than a well built, modern home, bought pre-title. Not only that, but they’re usually far easier to sell.
When it comes time to cash in on your capital gains, few properties are in higher demand than a newly built Golden Home build in the right location.
A partnership that works for you: Goodlife Financial Advice and Golden Homes
Here at Goodlife Financial Advice our mission is to help Kiwis secure a better financial future, and eventually, a comfortable retirement. Savings alone are rarely enough to achieve this, which is why we advocate building your first investment property.
Our strategic alliance with Golden Homes makes the entire process more cost-effective and straight forward. We have properties squirreled away that aren’t even available to the public, so we can generally always find you the best and most unique investment opportunities.
We’ve been through the process with clients countless times and our expert team knows how to make it easy for you. That means less money and time spent on conveyancing and peace of mind knowing that your contract with Golden Homes is air tight.
Take the first step towards a better financial future
Our partnership with Golden Homes has already netted impressive results nationwide. We’ve had clients buy in Warkworth, Tauranga and Christchurch. On average, they’ve made massive capital gains of between $60,000 and $100,000 over the last year.
We’re excited about the future working with Golden Homes, and we think you should be too! With our financial advice expertise and vast experience in home building, we offer clients a unique investment strategy that’s helped countless New Zealanders brighten their financial futures.
Here’s to your financial independence!
Authorised Financial Adviser / Investment Property Specialist
Contact us now!