Are you thinking about buying an investment property in New Zealand? Residential property investment, if done well, can be a smart investment choice. But if steps get missed in the process of a new investment, things can go awry.
As New Zealand’s largest independent property valuation brand, we here at TelferYoung are passionate about helping Kiwis make the right decisions when it comes to residential property investment.
Whether you’re looking at a short or long-term investment property, they both require careful planning and some expert advice — to reach the sunny, and profitable destination.
If you’re in a position where an investment property has presented itself, or you’re looking for some property investment advice, read on to find out what you need to know.
Property investors generally take a longer-term view on their investment. They look at the return the property is going to provide them over a longer period, based on the income they can generate from the property.
Long-term investments may look like this:
Other investors take a short-term view and look at how they can add value to a property quickly and sell for a profit.
A short-term investor wants to buy, get their work done and resell the property as quickly as they can. This aims to reduce holding costs and ensure they are selling in the same market to have a better chance at getting their desired sale price and achieve maximum profit.
Some investors do both, depending on the location and/or state of the existing property.
Like any renovation show will tell you, sometimes things don’t go as well as planned. When investing in property, there will be an element of risk in every scenario.
A wise property investor and one that wants to take minimal risk will be well informed and researched. Local knowledge is fundamental when looking at investment property, which can be gained from an independent and local property valuer.
There are a few common mistakes when undertaking this type of project:
This usually comes down to the lack of research done prior to taking on the project. The investor will come to realise they should’ve reached out to services to help them make informed decisions. Informed decisions make the goal a lot more achievable.
Regardless of whether you’re a long or short-term investor, it is critical to have a trusted team to call on to provide expert advice. This team could include a wide range of professionals such as:
Regardless of whether you’re a long or short-term investor, it is critical to have a trusted team to call on to provide expert advice. This team could include a wide range of professionals such as;
The role of the valuer in an investment property process is to determine the value of the property once the proposed work is finished. They provide qualified and independent advice about the location, saleability, renovation priorities, potential land values (if subdividing) and the added value of additional accommodation.
For a prospective property investor, this is invaluable information that should be gathered before the investment is made.
Doing the groundwork before going full steam ahead can be the difference between a successful investment or a failed one.
Important things to research/establish:
All too often property valuers are called after a project has been started or a property purchased, to find the owners are going to over capitalise or have not put their resources in the right places to get the maximum benefit from their investment.
We would highly advise contacting a valuer before purchasing any investment properties. However, if the purchase has already been made they can still help guide the process to the best possible outcome.
With a national network of 20 offices across New Zealand and a team of nearly 170 professionals, TelferYoung’s registered valuers can assist the purchaser or vendor with our vast local knowledge in the current New Zealand residential property market.