How do you choose an investment property?
If you have never invested in property before, you might be wondering how you choose the best dwelling to invest in.
After all, choosing an investment property in New Zealand is a lot different than selecting a house to live in – and with your hard-earned dollars at stake, you want to make a wise decision.
Use your head
When purchasing a property to live in, the decision is driven by your emotions as well as practical considerations, including your budget.
But when you buy to invest, you need to let your money do the talking. Careful research into average property prices, weekly rental figures and fluctuations in the market can help give you insight into whether or not your investment will be a wise one.
This will help you make informed decisions about location, property size and other factors that can influence how much income you can make from your real estate investment.
From this research, you will be able to get a good idea of how much rent it would be fair to charge – which of course should be considered against the costs associated with running and managing your property.
Get business savvy
The purpose of an investment property is to generate income, which means that you will need to start thinking of it as a business.
Just like any successful start-up, this means that you may need to seek out mentors or expert investment property advice in order to see the best results. You may also prefer to enlist the services of a property manager to take care of the day-to-day operation of your investment – including the business of finding tenants and collecting rent.
Don't be afraid to ask questions – after all, it's your financial future.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert