We all know that residential property investment in New Zealand is a great way to prepare for your later years – but when you're in the early stages, it might be a little difficult to narrow down your options. After all, with so many stellar homes to choose from, how could you pick just one? Finding your eye for a good investment can take time, so to help you fine-tune your knack for real estate, here are three things you should look for.
1. Low maintenance
Sure, it's easy to be pulled into a beautiful old villa with spectacular water views – but what happens when you need to put in the hard yards to bring it up to scratch? In the early part of your investment journey it's smarter to stick to a well-kept, low-maintenance property at the outset.
Take a look at the kitchen and bathroom in particular before you buy. These rooms usually have a big price tag attached if they need a lot of extra work, and it might not be worth the capital. Anyway, your tenants won't be too happy if things always need fixing. Get property investment advice in any case. It's better to be safe than sorry when making your choice!
2. Within your budget
Take a look at your financial goals – will the home help you achieve them, or slow you down? You need to be realistic. You're still going to need to pay of the mortgage, maintain the property and even expand your portfolio when the time is right – you don't want to blow all your savings on a single investment.
3. The type of property
This comes down to what you want to achieve, and the area the home is located in. A townhouse or apartment makes more sense in a densely populated area, while a big home is a suburban stalwart – and your tenants will probably be thinking much the same way. Remember: You're probably going to have to do a trade-off or two. If a home is further from public transport, off-street parking might be appreciated. Or closeness to restaurants, cafes and a bustling shopping centre could make up for a lack of space.
In the end, residential property investment comes down to the right mix of ingredients – and with the help of an Authorised Financial Advisor like us here at Goodlife, you can make the right choice for your long-term dreams.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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