Property investment is one of the best and most reliable ways to expand your wealth. This has proven especially true in New Zealand where property prices continue their rapid rise. Real estate isn’t a particularly difficult industry to break into and offers safe investment opportunities for beginners and experienced investors alike. That’s not to say that you don’t need a strategy, however, and many seek the assistance of property management services for help as they build their investment portfolio.
Do you know what you need to factor in as you consider a future in property investment? Continue reading to learn what it takes.
Renting vs flipping property
Effectively, there are two ways to invest in property. You can buy homes, apartments, or lands and rent them, or you can sell them after their value has risen. Either option is viable depending on how you want your property investments to fit into your life.
Investing in property to rent
Investing in rental properties can be a more measurable and regular form of income. You are, after all, collecting income monthly from property you own (and it is property you can still flip later). Rental income will command more of your time, however. Maintenance costs and services can dent your income, even becoming a part-time or full-time job depending on how much you’re willing to spend to outsource your tenancy obligations to a home rental service.
Most income earned in property investment is made through appreciation: the rise in the value of property over time. Savvy property investors can also create wealth by writing off depreciation in the value of your assets in your property taxes and leveraging any improvements you may have made to refinance your mortgages.
Finding the right investment property
Investing in property means buying in undervalued real estate and selling after the value has risen. For that reason, investing in properties that don’t gain any value will be a waste of your time and money. Finding the right properties is key, but what factors do you need to look for?
- Location, location, location – Much of a property’s value is determined by the quality of the area it inhabits. Is the property situated near nice restaurants and cafes? Is it near a good grocery store? Does it offer easy access to shopping, parks, and other necessities? Is the neighbourhood secure? Does it offer a great view?
- Style – A property should be built for the kind of people most likely to live in that location. Look for undervalued homes that accurately reflect their environment. Are the properties you are looking at like other properties in the area?
- Infrastructure – How well is your property connected to what it needs? Are their public transport connections nearby? What is the quality of the roads? Are there any planned developments in the area? Last but not least, a property should be accessible to transportation and utilities. Investigate the wiring and plumbing to ensure that the costliest and potentially damaging repairs won’t set you back.
The key to property investment is good detective work
Smart property investors don’t just throw their money at every available property they can find. They watch the housing market closely and investigate their options thoroughly. You want to find properties that are undervalued on the market and that can be made to appreciate in value. At the end of the day, those who do the digging are the ones who find the gems.
Don’t invest alone
Property investment can seem like a daunting venture, but it is attainable to anyone with a strategy who is ready to grow their wealth.
Consider the help of professional property management with local experience to find the right properties for your portfolio. Udy Realty specialises in maximising returns on your investments, with industry-leading systems and procedures in place to ensure your properties are always in the safest hands. Contact Harcourts Udy Realty today to live your property investment dream.