There is no need to reinvent the wheel, when it comes to knowing all you need to know to invest in residential property in New Zealand. Our obsession with homeownership has resulted in our small country of 4.5 million people having thousands property investors and many of them frequent a dedicated property investment discussion forum called PropertyTalk.
There are many pearls of wisdom shared daily on PropertyTalk by investors willing to spend their time passing on their knowledge and wisdom. Here are a few pearls to remember:
- Property investment is not a get-rich quick scheme. It will take at least ten years for most investors to see the equity in their investment property accumulate to a decent amount and depending on how much of the loan is paid back and the growth in property value it may take a lot longer. However there are investment strategies that can be utilised to provide cash flow while your wealth is accumulating. One strategy is called property trading and PropertyTutors are the go-to team for mentoring in the ‘buy, renovate, sell’ trading strategy.
- Property investment is all about the numbers. This is pretty much sums it up. If the numbers (costs, income, liabilities, profit) don’t work then you’ll likely lose money and that is of course not the outcome we all desire. Rental income needs to cover the ongoing liabilities (loan, rates, maintenance etc) for serviceability and for equity to accumulate beyond what will occur from the property’s value increase.
- You make your money when you buy. PropertyTalk investors swear by this statement. Buying well results in equity in the property as soon as it’s yours. Doing your due diligence on the property and getting it for a good price which means ideally buying it below market value or adding value to the property as soon as you get it and a registered valuation proving the increase in value.
More pearls of wisdom will be regularly posted on this blog throughout 2016.
For more information on property trading download PropertyTutors’ new eBook…..