While many in New Zealand own their own home and perhaps one other property, building a strong investment portfolio is an achievable way to gain steady wealth over time. Here are a few considerations if you are aspiring to increase your investment property gains.
Start with Cash Flow
The first property you buy is the hardest, and the subsequent ones will be easier because you will have equity, credit, and trusted relationships with your mortgage broker and accountants. In order to get enough cash to invest in a second property, you should aim for your first investment to return a positive cash flow. That means you will probably want to buy under market, renovate a little, and earn enough rent to make a profit. iLender offers low deposits on investment mortgages, so you can start getting returns on your investment property sooner.
Use a Good Mortgage Broker
Mortgage brokers don’t only lend – good brokers are also knowledgeable in setting up the right mortgage structure and figuring out the current housing market. By utilising certain mortgage structures, you may be able to increase your cash flow in order to buy your next investment, or build your equity to expand your property portfolio.
You should always outsource what you are not good at doing yourself. If you think managing your own properties requires a level of organisation or time you are not prepared for, hire a professional property manager. You can hire a property broker to help determine where and when is right to buy if you are confused by reading the market yourself. Using a property Accountant is also a must for the serious investor.
Sell at the Right Time
Many people are afraid to actually sell their investment property when it hits its peak. When you invest in a property with high capital gains returns, you make your profit when you sell it before its value depreciates again.
Mix Capital Gains and Cash Positive Investments
While young investors likely need their first property to be a cash-positive investment, wealth is built from investment property with high capital gains returns – meaning you buy low and sell high after a short period of time. Aim to have a mix of these two types of returns in your property portfolio. Most successful investors always take the longer view.
More information below:
- Benefits of Property Investing
- Growing Your Property Investment Portfolio
- Finding The Right Property
- How To Subdivide A Property
- Managing Your Investment
- Planning Your Investment
- Getting the Best ROI
- Property Investment Yield
- Capital Gains
- Property Investor Tips
- Property Investment FAQ
- Using Equity To Buy
- Investing in Apartments
- What to Look for When Investing in an Apartment
Don’t just take our word for it – check out our reviews!
"Absolutely awesome words can't describe it even when we were declined you fought for us and got us our first home loan amazing job never gave up 5 starts and more"
Ross & Briar Parfitt
"I've dealt with many brokers and lenders in my career, these guys were BY FAR the quickest and stress free to work with. Everything was so easy for a change, professional, to the point, and simple. Highly recommend them! Can't speak highly enough of this company!"
"Our bank of 10+ years couldn't get the job done. Jeff and his team did it in two weeks, absolutely hassle free. Really need an option for a 6 star rating as the type of personalised service you receive from iLender just doesn't exist anywhere else."
"Thank you Jeff and team. We have found a home and you have made it possible for our family. You have made the impossible look easy and we are very thankful with gratitude that you have worked on our behalf. Very happy and satisfied customer and we highly recommend your services to those that find it a challenge buying a home...Thank you ++++"
"I am a first home buyer, who had been battling for 7 months to secure a home for my family and I. Jeff was my third try at a mortgage broker/banker, and by the time I got to Jeff I'm just thinking about giving up, this is just too hard. Jeff brought assurance and calmness to my situation straight away. He answered all my questions with clarity, and without hesitation or annoyance. Just shy of 4 weeks since working with Jeff, I am now a home owner. I cannot recommend him enough!! Thank you for all your help Jeff."