Investor toolkit: How to get started in property

"A journey of a thousand miles starts with a single step."

Renowned Chinese philosopher Lao might as well have been talking about the Auckland property market when he said this 2,500-odd years ago. That's because investing in property in New Zealand can seem like an intimidating task, which puts would-be investors off from starting at all.

The key is to get started immediately, as once you've taken the first step, the strides that follow will be considerably easier. To make sure you have the tools to begin on the journey to being a successful property investor, here are our best basic tips for getting started.

Taking that first step towards property investment success can be difficult. Taking that first step towards property investment can be difficult.

Know what you want to achieve

Before you can figure out your 'how', you need to decide your 'why'. Namely, why are you investing in property and what do you want to achieve from it? Are you looking to generate income, build wealth by starting your own property empire, or just set yourself up for retirement?

Before you can figure out your 'how', you need to decide your 'why'.

Your goal could be a combination of these, and setting it could be more difficult than you might think. Getting professional advice from an experienced advisor here at Goodlife will make this step far easier, as we've been helping fledgling investors make this decision for decades now.

Get the right advice

Once you've figured out your reason for investing in property, it's time to take the next step and decide how to reach your goal. For obvious reasons, this might be the most difficult part of your journey and it's absolutely essential that you get it right.

That's why at this point of your journey it's essential that you speak to an advisor. With professional help you can draw up a detailed strategy that will get you from A to B as efficiently as possible. When planning you'll have to figure out the following at least:

  • What's your property priority: cash flow positive property, capital gains, or a combination of the two?
  • Where do you want to buy: different areas have different pros and cons, from high capital gains in Tauranga, to solid rental yields in Whangarei.
  • What do you want to buy: do you need to buy a new build to get around LVR limits? Or a large section to maximise future capital gains?

There are a hundred other questions you must answer when you're formulating a plan – all of which the experienced team at Goodlife Financial Advice can help you with.

Organise your finances

When you've figured out where you're going, and plotted your route with the help of a trusted advisor, the next step is funding your journey. Most investors go straight to their bank, but that might not be your best option. Each home loan is different, and that there are countless options to choose from that will each come with their own benefits and drawbacks. 

When you've figured out where you're going, and plotted your route with the help of a trusted advisor, the next step is funding your journey. Most investors go straight to their bank, but that might not be your best option. Each home loan is different, and that there are countless options to choose from that will each come with their own benefits and drawbacks.

By going with a good mortgage broker (like us!), you'll be able to pick and choose a loan from the offerings of all lenders. Most importantly, you'll have your broker's expert knowledge and sage advice to rely on when choosing the most suitable loan product. You should also be getting ongoing advice around loan structures, asset ownership structures, negotiated rates, cash contributions, and ongoing advice around refixing loans.

Here's to your financial independence!

Daniel Carney
Authorised Financial Adviser / Investment Property Specialist

Contact us now!

0508 GOODLIFE
info@goodlifeadvice.co.nz