It's easy to say that buying a residential investment property in New Zealand is a great option, but why is this the case? Not everyone is a born and bred property aficionado, and some of us need a bit of persuasion to make that jump. After all, you wouldn't dive straight into the deep end without knowing what you were letting yourself in for.
With that in mind, here are three reasons why property investment can be a great decision.
1. Watch your wealth grow
It's true – property prices are rising across the country, and it seems like every day there's a new bit of information about the state of Auckland's real estate market. But don't just take the media's word for it – there is actually a science behind the wordplay. There are two types of returns you can get from an investment home: One is the rent you collect from your tenants, and the other is from the home improving in value, otherwise known as capital gain.
This is what really gets people going. If you hold on to it for a fair whack of time, you're likely to get a tidy return by the time you sell the rental – and propel yourself towards financial independence.
2. Tax benefits
Sure, tax is a pain – but property investment could actually make it work in your favour. For instance, all the little things you spend your money on to keep the rental ticking over – like maintenance and repairs, insurance, even legal fees – could be tax deductible.
3. It's in your hands
You don't have to be a seasoned expert to dip a toe into the real estate market – the great thing about property investment is that anyone can do it! With the right property advice and guidance, you make the decisions. You can decide whether you want a property manager to do the hard work or if you'd like to take a hands-on approach, and how you're going to make improvements.
The world is your oyster when you realise the benefits of investing in property – all you need is a vision, goals and an Authorised Financial Adviser on your side.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert
Contact us now!
0508 GOODLIFE
info@goodlifeadvice.co.nz