Property investment is a key wealth creation strategy in New Zealand. It is a significant step in growing your personal wealth and it also includes a range of other benefits. Buying an investment property can lead to future income generation and asset appreciation
Investment Property Finance
One of the most important elements in your investment, naturally, is managing your finances.
A number of factors impact on investment values:
Capital management and capital commitment: Home loans, getting the best rate mortgages, and leveraging are common forms of capital raising for property investment
Financing structure: Balancing mortgages, repayments, rental income and tax benefits
Asset values: Improving the value of your investment by upgrading your property and adding additional capital gain and rental income potentials
Property maintenance: Ongoing costs of maintaining investment properties
Practical Property Investment
As well as the security and wealth creation possibilities that come with an asset like a house, property investment offers other possibilities
Rental income: Rental income, relative to your capital outlay, is a major factor in investment property values. Good rental income increases the value of your investment property. Rental incomes may also be used for “negative gearing”, a method of managing rental property expenses and offsetting your investment income against costs, this can mean you pay less tax on your income!
Capital gains: Capital gains are the appreciation in value of your investment property over time. In New Zealand medium to long term property investment does not attract tax. Check with your professional advisers for clarification.
Leverage value for financial purposes: Your property can act as a working asset for further investments. For example, you can use equity in both your owner occupied property and investment property as security for another investment mortgage
Talk to Us about Your Investment Portfolio
The most important aspect of property investing is good financial management. Your initial investments must be based on good capital management.
iLender is one of New Zealand’s leading mortgage brokers. We can help you with finding the right mortgage, expert advice on property investment in New Zealand and much more.
If you’d like to enquire about our services, give us a call on 0800 LENDER speak to one of our Advisers.