Different area codes: Pick the right investment property!
If you're weighing up your residential property investment options, you'll no doubt consider which kind of property will best help you achieve your wealth-creation goals.
Deciding whether to invest in a unit with a single bedroom or something with more space will undoubtedly cross your mind.
However, it's not just what you buy – it's pertinent to consider where you buy, too.
Some areas will boast favourable rental yields, while others are not on the flash side.
If you've got an eye on a particular suburb, be sure to investigate what your potential returns could be. Of course, remember that the figures offered by analysts are often medians or averages, making it important to pay careful attention to what could make a particular property attract a higher – or lower – weekly rent than similar dwellings in the area.
If you seek out Auckland property investment advice, there's a good chance you'll be told to look in areas that are located close to transport links.
Given how spread out the city is, it's not realistic that everyone can live close to the CBD! However, you might consider expanding your property portfolio by investing in suburbs that are located close to the eastern, western or southern train lines.
Plus, the city also has a wide range of bus and ferry routes, too. No matter the mode of transport, think ahead to how potential tenants would get around. If it's going to be straightforward for them to jump on a train, bus or ferry, then the property you've got your sights on could be a good option.
Look out the window
Picture this: There are two properties with the same number of bedrooms, both with a modern kitchen and good insulation.
One has a beautiful view of the city skyline, while the other is located in a noisy industrial area, with construction machinery the usual view.
Which property would you rather live in? When investing in property, think about how potential tenants will view the neighbourhood around them.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert