There can be little doubt that investing in a New Zealand property is one of the most reliable sources of income out there right now. Not only do profits tend to rise year-on-year, but it's a cashflow that is never likely to run dry. After all, the rising population of New Zealand is always going to need somewhere to live, especially in the bigger cities such as Auckland, Hamilton, Tauranga and Whangarei.
As such, investing in a property in New Zealand makes sure sense, but there are still a raft of things that you need to consider before taking the proverbial plunge. It can be easy to look past the basic factors of choosing an investment property as you get lost in the nitty-gritty of the nuances of the process, so in this article, we're going to give you a timely reminder. Here are three things to consider when picking out your prime investment.
Investing in a New Zealand property is one of the most reliable sources of income out there right now.
Choosing a suitable suburb
One of the biggest choices that you'll face when buying your investment property is its location. This will have a huge bearing on the overall success of the investment, as it will feasibly determine the kinds of tenants you attract, the rental fees that you can set, and a whole host of other factors.
Think of it this way. If you were to snap up a place with a university in the vicinity, it's likely that many of your prospective tenants will be students. Though this in itself isn't necessarily a bad thing, your turnover of tenants will be higher than average, and your property may even sit empty during non-term times, losing you money. Additionally, though students are a reliable source of rent (that student loan has to go somewhere, after all!) the selection process can be a terrifying game of chance – you can just as easily get wild party animals who may damage your property as you can meek, mild-mannered ones. Certainly something to ponder!
No, we don't mean fall foul of the law during your investment property quest. Rather, we're talking about studying the crime statistics of any potential areas where you're thinking of investing. These are easily available from NZ government websites, local police or the public library, as well as good, old-fashioned word-of-mouth. After all, no one really wants to live in an area where they risk getting mugged each evening on the walk home from walk (even though the rent might be cheaper), so you'll need to carefully consider your options once you've uncovered some hard statistics.