There are so many property types on the market to choose from. Finding a good residential investment property is a combination of the right home, the right place and the right management – and no single element will be the same in every case! The traditional porch and backyard property is always a classic, but you might decide that an apartment is more your style. If this is the case, there are a couple of factors you'll need to keep in mind before leaping into the deep end.
Location is key
Location is one of the most important things you'll need to think about when planning your investment – apartments are no exception! Just like a house, getting the location of your rental spot on is crucial. Look for blocks that are close to town centres, public amenities or public transport. Remember: This doesn't necessarily mean Auckland CBD! You can spread you wings and go further afield in your property search, but ensure that you've done the research.
Figure out what apartments are popular – are tenants looking for two-bedroom or one-bedroom units? Or are they after off-street parking? You'll also need to take a look over property data for the suburb. Buying in an area where rental apartments are in demand can make the difference between a stable investment – or one that you have trouble filling. Make sure you've got a clear idea of what can give you a consistent income.
Right place, right price
Don't just look at the property's features – think about them in relation to the price and the area it's in. Are you getting good value for money, or will you end up overcapitalising? This is a big point to bring up when getting property investment advice. Compact apartments often need less upkeep than a large detached home, so you could factor this in to your long term budget.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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