When you plan to purchase a residential investment property in New Zealand, there are several important things to consider.
Real estate investments require careful planning before you make your final decision, but two of the most important factors to think about are how much you will pay for your property, and how much income it will earn when you rent it out.
While you're still in the planning stages of your investment journey, it's worth taking some time to review the latest market statistics so that you know how much rental income you will expect to receive.
Because the New Zealand real estate market can vary so widely, and because property values in some centres – like Auckland – are much higher than the averages in other parts of the country, it is important to do careful research into what is happening in your local area.
The Ministry of Business, Innovation and Employment recently released market rent figures for major centres across New Zealand – information that is essential reading for real estate investors.
In the Auckland suburb of Avondale, for example, the median weekly rent for a two-bedroom flat in the six-month period between February 1 and July 31 this year was $320, and the figure for a four-bedroom house was $550.
By contrast, the median weekly rent for a two-bedroom flat in Hamilton during the same time period was $235, and a four-bedroom house was rented at a median of $370.
The lesson these figures can teach all investors is that it's essential to know your market, and to seek out real estate investment advice from those in the know. If you have further questions about what you need to know before you make an investment in New Zealand, make sure you discuss them with a trusted professional.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert