Buying your first investment property in New Zealand is a pretty big deal, so it's understandable that you might feel a bit overwhelmed at first.
This is why an important part of the earliest stages of your investment is creating a property investment plan.
Property investment plans can help you clearly outline your goals, as well as the steps you need to take to achieve them.
Surround yourself with experts
Investing in property can be a daunting process – especially if this is your first experience in the property market.
By seeking out advice from trusted professionals – including a residential property investment adviser and perhaps a property manager – you will surround yourself with a skilled team to help you through every step.
Assets and liabilities
The most important thing you should do at the beginning of the planning process is evaluate your current financial situation, including your assets and liabilities.
The right New Zealand property investment advice can help you through this step and assist you in determining what kind of risk you are open to, as well as the type of investment you want to make.
Crunch the numbers
Obviously, the point of a real estate investment is to make money – and while you should always take a long-term approach to investing in property, it is important to do the right calculations to understand where you currently stand – and how that is likely to change in the future.
Some figures you will want to pay close attention to are the current property prices in the area where you are keen to invest, as well as trends for median property price. This will give you an idea of the capital gains you can expect.
Likewise, careful research into the average weekly rental figures for your city or suburb can give you an idea of how much rental income you may be able to expect.
Just remember – whenever you are in doubt, don't be afraid to ask questions.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert