Look at Your Property Options

If you are getting into Property Investment NZ, keep an open mind on what kind of property you will consider investing in.

There are other options out there – rather than the house or flat in the suburbs. Think about apartments and high rise investments closer to the CBD.

Some of the advantages of apartments as investments are;

  • Generally apartments are lower maintenance than houses or the cost of maintaining several apartments in one block is cost effective.
  • Often apartments offer a better opportunity to leverage, as you may have multiple units to leverage against.
  • Higher rental income is often a possibility, due to the proximity to the CBD and the lure of added benefits, like access to gyms and pools.

There are some pitfalls to avoid when considering an apartment.

Things to Avoid

  • Not knowing the market – just like with buying houses to rent you need to know the market and the area, concentrate on a defined geographical area and become an expert on this.
  • Bad Timing – again this is about knowing the market and talking to the right people.
  • Unforeseen costs – Apartments often come with some hidden costs – like body corporate fees and car parking or storage costs. Do your due diligence and ensure there will be no surprises.
  • Poor property management – not using a property manager or having a poor one could cost you more in the long run than not paying for a good property manager.

PropertyTutors.com see demand for apartments is growing, we are a society that is accepting that High Density Living is in our future. Lenders are more financially supportive, with many now lending 80% of the value.

For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

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