What are my responsibilities as a property investor?
If you are thinking about investing in Auckland real estate for the first time, you likely have many questions about the process.
Before you start getting into the nitty-gritty details of selecting a property and arranging your finances, you first need to determine whether real estate is the right investment option for you.
Investing in property has many advantages, including the ability to make a long-term profit as house prices rise.
To reap these benefits, however, you'll have to do some work – especially when it comes to attracting the right tenants and managing your real estate investment.
In addition to finding the right people to live in your property and its day-to-day management – including collecting weekly or monthly rent and addressing any maintenance issues that arise – you will also need to ensure all relevant taxes and fees are paid.
You'll also need to make sure you keep up on the relevant tenancy laws as they relate to your real estate investment, and take care to keep the lines of communication open with your tenants so any issues can be addressed as quickly as possible.
Some real estate investors prefer to leave these duties in the capable hands of a property manager, who can take on some of these duties in exchange for a fee.
Writing in Property Observer, Australian investor Cameron McEvoy noted that another thing that investors need to be aware of when considering real estate in New Zealand is the safety of the dwellings.
This means that – especially if you are purchasing an existing property – you will need to ensure it complies with local safety codes for earthquakes and other natural disasters.
For most real estate investors, the rewards associated with their purchase considerably outweigh the risks – and if you are looking to get started with the process, speaking with a trusted adviser is a great way to begin.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert