If you're in the market to buy an investment property in New Zealand, there is some more good news in the headlines. This time, it's from the Reserve Bank of New Zealand (RBNZ), as they have decided to keep the official cash rate (OCR) steady at 3.5 per cent!

It has now been stable at this level since July 24, which bodes well for anyone who would be taking out lending. Interest rates tend to follow the cash rate, offering you a nice degree of certainty as you embark on your next property investment.

In the December 2014 monetary policy statement, RBNZ Governor Graeme Wheeler noted that while the dairy sector saw a decline in recent months, there have been other parts of the economy that really stepped up and performed well – including construction. This could mean great things for anyone searching out new properties, as the RBNZ statement has also highlighted a continuation in investment growth. 

Overall, this means that people are still wide open to entering the property investment market – which means you might be too! 

But before you go ahead and jump right in, it's important to make sure you're buying a suitable property for your financial situation. For example, while home prices are skyrocketing in some parts of Auckland, it may be better for your budget to check out investment property in areas like Hamilton, where the median home price in November was $380,000 – compared to $692,000 in central Auckland, according to REINZ.

By getting suitable investment advice from an Authorised Financial Adviser, you'll be taking a step in the right direction – the direction of you building independence through some great property purchases.

Here's to your financial independence!

Daniel Carney
Authorised Financial Adviser / Investment Property Expert

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