Anyone who knows anything about property investment in New Zealand will tell you that local property markets can be very different. Even nearby areas can be totally disparate in how they function.
If you’re considering buying a property in a new area, you need to thoroughly assess property values, investment values and market trends. If you’re taking out an investment mortgage, a home loan, or in equity mortgage, you need to be well informed about market prices and performance.
Exploring a New Property Market
Looking at a new property market may take a little time, but it can also save you a fortune. It can even make you a fortune if you buy in a good local property market. This is "due diligence” for investors and homeowners and it’s always worth the extra effort.
Let’s start with the basics:
What sort of properties are available within your budget?Always include your budget in all calculations. Take a little time to explore properties in your price bracket, particularly those which cost a little less and can provide you with more capital.
What are the rental prices in this new area? Rental prices can be a good indicator of actual property values. If rental prices are stagnant, you can assume that property prices haven’t done much.
Are there new homes in your budget range? If so, bear in mind that these homes will have less to spend on them than older homes. They may also appreciate more in value, depending on market trends.
Capital gain?: Why, in the area you are looking at, would the property go up in value (or down!) What supports the local economy for example?
Understanding the New Property Market
The next, and perhaps most critical, part of your market research is seeing how the local property market is performing. In Hamilton, for example, property growth is surging as a result of population increase, which is driving prices up. This is paired with a growth in employment opportunities and with projections for continued industrial growth, Hamilton offers great opportunities for capital gains.
Ask iLender about Rental Properties
For any help you need with buying a home or property investment in New Zealand, talk to iLender. We can help you with market information, home loans, investment mortgages, equity loans, and any assistance you need. Call us on 0800 LENDER.