Searching for an investment property? Know what to look for!
Properties are a lot like people: No two are exactly the same and even the little differences can make a big impact. This goes double if you're hoping to bring in some money from an investment property in New Zealand.
Whether it's your first time entering the market or you're an old hand at this point, there are certain factors you'll want to focus on when selecting an investment property.
In many ways, where a property is located can be more important than the property itself.
Real estate investment is a long-term game. While a pristine double-storey home may jump out at you and leave you with images of dollar signs dancing in your mind, what are you going to do if the home is located in an area where demand for housing is low.
If a home is too far out from the city, finding tenants can become a major pain in the neck. And even if you're only in it for capital growth, a lack of demand will hurt you when it comes to value growth in the future.
At the end of the day, buying an investment property means you become responsible for the upkeep of the home. Even if you have wonderful renters who take great care of your property, there will come a time where you will either need to undertake some maintenance or hire someone to do it for you.
This can be very costly if you've become the owner of a much older home that was in disrepair.
With that in mind, you might want to find new or refurbished properties that will present you with less of a maintenance challenge.
Today's perfect investment may be tomorrow's big mistake if you don't keep up with how the land around your property is changing.
Stay apprised of any future infrastructure developments going under way, as these have the power to greatly increase or decrease the value of your property.
After all, everyone wants to live near public transport, but no one wants a rail line cutting through their backyard.