NZ Property Selection
Consider these factors before you choose an investment property:
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 here.
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 here.
Learn about Leverage
The Best Investment
Usually 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.
Can 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.
Your best chance for high capital gains. Big sections don’t necessarily command much more rental income though, so yield can be quite low.