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Why should you invest in property?
In reality even your own home is an investment.
Over the years it grows in value, an investment property can do the same, but the difference is much of the expense will be funded by the tenant.
Having more then 1 asset growing in value will be to your long term benefit. Property investment is a long tern strategy.
What else are you doing currently that will allow you to afford a comfortable retirement?
Kiwi Saver and Superannuation may not be enough.
With interest rates under the 10 year average and property prices lower, this presents an opportune time to consider property as a strategy.
THE KEY BENEFITS OF RESIDENTIAL PROPERTY INVESTMENT
- Capital gain creates your savings
A $450,000 property today could return you equity in excess of $1,000,000 over 20 years. To save $1m you would have to put away $2,500 per month for 20 years and be earning 5.5% p.a. each year! Most people can’t save at this rate and if they could it would make a significant impact on their lifestyle. By buying investment properties over a number of years, as you can afford them, you can build up a sizeable savings fund.
- Tenants and the tax system cover the costs of your investment property
The rent and tax savings can pay a significant amount of the costs of your investment property and in some cases generate additional income for you.
- You don’t need to be a landlord
You can leave the day-to-day management of property to the professionals - so you avoid the potential pitfalls of being a landlord.
- You don’t need a deposit to get started
Equity in your home could provide a "no cash down” entry into property investment - you can start immediately.
We work with you so you understand your strategies to Increase borrowing potential – Lack of income and equity are the main areas that prevent investors from qualifying for further borrowing. We can suggest various strategies to help you improve weaknesses you may have in these areas, for example, by adding value to a property or investing in a high growth area. As important as it is to know how much you can borrow as an investor is to have an understanding of what your ‘brick walls’ or limitations may be and this will give you more clarity to what sort of property will suit your portfolio.
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