Property Investment to Increase Wealth

Property investment NZ is still one of the best ways of increasing wealth and making money. The old rule of thumb that holds that the value of a property doubles between seven and ten years is still true, making it an asset that provides a good rate of return.

How does Property increase your wealth:

  • Appreciates – Property increases in value steadily, in many areas property doubles in seven years, this equates to an annual return of 8%.
  • Buy low and sell high– Another way of increasing wealth through property investment is buying when property prices are low and selling them when the market rises.
  • Rental income – Property investment can supplement existing incomes when you rent out the property.
  • Upgrading– Property investments can be used to upgrade by selling an existing property, using the amount received to make a down payment for a better, more expensive property, and using the refinancing option.
  • Tax benefits– There are tax benefits if you set up your Property Investment business correctly and getting the right professional advice is key.
  • Purchasing undervalued property– The real estate market often has some properties on sale that are being sold for less than their market price. These opportunities can be deceased estates or mortgagee sales and you can handle these with respect and consideration.
  • Renovation – A run down house can be renovated quickly and professionally for either a fast turnover or a rental property.

Property investment is by far one of the most risk free investments available and remains a very popular choice for investors. Having a physical asset that does not just exist on paper but is tangible is very attractive for investors. With increasing populations the demand for property is bound to increase which will then outstrip the supply, leading to an escalation in prices. This will then mean an increase in wealth and yield high returns on the initial investment made.

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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