NZ Property Selection
Stick to main centres – They have more stable economies, so you’re less likely to see volatility in property prices. You may also wish to spread your investments across different markets,
by purchasing a rental property away from your family home.
New or used?
Recent mortgage restrictions make
buying brand new properties easier, with lower deposit requirements. New
properties typically rent faster, have lower maintenance requirements, and have
more chattels to depreciate.
Read more about New vs Old property
Some areas experience better
growth (capital gains), while others have higher yields. Usually cheaper suburbs
will be good for cash flow, but more
expensive neighbourhoods often earn
you more in the long run.
Read more about Yield & Growth
ApartmentsUsually earn good yields so can be cash flow positive i.e. Income is higher than expenses. They will give you very little capital gains though.
TownhousesCan either be attached, meaning they share a wall with a neighbour, or stand-alone, which is preferable. Townhouses can offer a good balance between yield and growth, so make a great investment.
HousesYour best chance for high capital gains. Big sections don't necessarily command much more rental income though, so yield can be quite low.