3 tips for getting into property investment in New Zealand

Have you considered getting into property investment?

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Property investment is a popular option within Aotearoa. This is represented by how it made up nearly a third of all Kiwi investments in 2017, according to Statistics New Zealand. It's considered an attractive option for many reasons, including the ability for investors to gain a passive income.

If you're looking to enter into the realm of property investment and grow your empire, here are three tips to help get you started.

1. Talk to a financial advisor

Knowing the state of your financials is essential. Property investment generally requires a large capital investment at the outset, so you need to know whether you're currently able to afford this.

An advisor can help you take stock. They can assist you with tasks such as:

  • Evaluating your current assets.
  • Looking at your cash flow.
  • Helping you maximise how your money works for you.
  • Figuring out mortgage pre-approvals and structures.
  • Creating a long term financial plan.

Another benefit of talking with an advisor is clarifying what you want to achieve by investing in property. How you proceed depends on what your aims are. For example, are you looking to gain a steady rental income, or do you want long term capital growth to support your retirement plans?

Deciding to invest in property is a big decision. Make sure you have the right team to help you succeed. Deciding to invest in property is a big decision. Make sure you have the right team to help you succeed.

2. Understand risk

There are two aspects of risk to consider here. The first is knowing that investing in property brings with it long term risk. Understanding how you're feeling about opening yourself up to potential issues is the second.

Your relationship with risk often links in with what stage of life you're at. If you're creating a long term investment plan and you're in a relatively stable position, accepting a little more risk might not worry you too much. On the other hand, if you have a young family or you're closer to retirement, choosing more secure property investments could help you sleep at night.

3. Research, research, research

At each step of the way, you need to dedicate time to research. It's important to look at everything from which banks will offer you the best mortgage structures to whether buying a new property is the wisest choice. For example, while many people think that it's necessary to buy a property to start down the investor route, it's not the only option available. Others include potentially subdividing any current property you own, or building a minor dwelling on your land to then rent out.

If you're looking to grow your empire, take a look at our whitepaper on building your property portfolio, or reach out to our friendly team.

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