A lot of people spend much of their life wondering how to create wealth.
After all, no one wants to simply go to their nine to five job everyday until they're old and grey just to make ends meet. By that point, all those dreams you wanted to pursue might not be on the cards anymore.
And let's face it – this is a big deal. Kiwis are adventurers by nature. We want to climb mountains, sail the ocean and see the world. With New Zealand being rated as the third most creative country in the world according to the Global Creativity Index, there's no doubt many would even love to take time out to write music, paint or maybe even invent some kind of new wool-shearing technology.
The catch is that all these pursuits need both time and money.
Sure enough, many have turned to investment as a means of gaining extra cash on the side while they work, allowing them to retire comfortably and early. With this in mind, take a look at three reasons why residential property should be your investment choice.
1. Nice and stable
Unlike other forms of investments that get you high returns, property is a less volatile choice. While stocks can rise and drop dramatically in literally the course of a day, property values very rarely sway so rapidly.
Returns in the form of rental income should arrive a relatively constant stream, which will make budgeting and planning your finances a far simpler affair compared to dealing with other investment returns.
2. Double shot
Property investment is like the gift that keeps on giving. Not only do you receive rental income from the tenants, you can also make a hefty profit off selling your property later down the road.
According to QV's residential index, Auckland's average housing value rose by 22.6 per cent over the year to September. This an immense figure and represents the potential for huge capital gain for the city's real estate owners. This term describes the profits earned after selling a home that has increased in value overtime.
Needless to say, more dollars in the pocket is a win no matter how you look at it.
3. Be the boss
Another great thing about residential property investment is that for the most part, you have full control. Not only can you decide how much rent will be for tenants, but you can also add value to the property through renovations as you see fit. Furthermore, taking hold of the reins and getting your hands dirty will make these cheaper to apply.
Of course, this freedom of choice means you're going to need sound property investment advice to make the right calls.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert
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0508 GOODLIFE
info@goodlifeadvice.co.nz