Is investment property right for you?
Everyone wants to make more money, and investment is one of the best ways to go about it. The question is: Which investment is right for you?
There's no doubt property investment has become a popular and profitable choice in New Zealand, especially in hotspots like Auckland.
In fact, over the past century, residential property investment in NZ has out-paced inflation by 1.5 per cent. More recently, home values in areas like Auckland have skyrocketed, providing savvy investors with plenty of opportunity to generate high returns.
But is it the right choice for you?
Passive or active? The choice is yours
Many investors like to streamline the process as much as possible. They come up with an investment plan, put the money into it and step back.
Others are much more involved in the investment process. They want to be a part of each step and constantly update and refine their strategies.
The great thing about buying investment property in NZ is that you can take either route.
For instance, if your plan is to reap the rewards of capital growth, purchasing investment property in Hamilton or another area where prices are on the rise will give you the chance to sell the property at a later date for a profit.
On the other hand, if you want a more hands-on approach, you could buy an investment property in Auckland and rent it out. This will give you the chance to act as the landlord while enjoying immediate growth of your cashflow.
If renting out to tenants is more up your alley but sounds to labour-intensive, you can always hire a property manager to handle the day-to-day responsibilities in your stead.
The point is that property investment can fit individuals of all stripes, regardless of what your specific needs or objectives are.