There are few better feelings than knowing that you work in a rewarding job. But when you’re working long hours it can be difficult to plan for your financial future. After all, managing the bills and the rent can be overwhelming at the best of times.
To resolve this problem, many people look for passive income in the form of an investment property. Property investment offers good returns for the patient investor and excellent results for those who enjoy an adrenaline rush.
If you’re not sure how you will balance property investment and management with a full time job, keep reading for some advice.
Investing in Auckland
Leading property commentators see Auckland as the next luxury property market to explode globally. Migration by Australians to New Zealand is at an all-time high and Auckland is expanding to accommodate the growth.
While Auckland itself may be difficult to buy into, the surrounding areas offer great value and the opportunity to capitalise on new developments.
Choosing a property in a promising location like Auckland will make your investment easier, even when you are working full time. But knowing where and when to buy is still a rare skill.
Outsourcing to a mortgage lender and investment professionals who know the market is critical to your success as an investor.
Find The Right Property
As a busy worker, finding an investment method that matches your lifestyle is essential. Luckily, with property, there are three main ways that you can capitalise on an investment.
The method you choose will be determined by the time you have to spend on building wealth through property investment.
- Buy Low Price, Sell High
The easiest way to capitalise quickly on a property is also the riskiest. Generally, new developments will offer investors a low deposit to buy in prior to construction. The agreed-upon purchase price is then due on completion.
With this strategy, investors are banking on the value of real estate increasing during a relatively short time frame, or the time it takes to construct the property.
- Renovate and Flip
Renovating a home in a desirable neighbourhood is a reliable strategy for increasing wealth. The risk of capitalising on improvements is that the renovator invests too much or misunderstands the needs of the market.
This method will take some commitment for busy workers in the form of renovations. Investors generally try to ‘flip’ properties faster, though, so it may not take up as much time.
- Take a Long Term View
For investors in their 20s, taking a long-term view on property investment is the safest way to build wealth. By investing in a property for twenty – or even up to forty – years, you have the peace of mind that your property is likely to increase in value over time, no matter the inevitable market fluctuations.
This approach may also be the best for busy workers. It represents a lower risk and less commitment and – when done properly – it can be a great way to grow a nest egg alongside your wages.
A Word about Property Managers
Once you have a property in mind, managing it can be time-intensive. This is true regardless of your investment method. If you’re planning on building a diverse property portfolio, property management can be even more time-consuming and costly.
By engaging a property manager, you eliminate the need to upskill to manage your property, which can include everything from HR (interviewing and managing tenants) to repairs, maintenance and even bookkeeping.
This means fewer demands on your career and – because it’s being handled by the professionals – better results for your investment.
You can also join a property investors association such as APIA for a range of resources and a constant support network for the life of your investment.
Reliable and Trustworthy Advice
Get on the property ladder with the professional mortgage brokers who know the NZ home loans market. Call iLender today on 0800 LENDER (0800-536-337) or email [email protected] with any questions you have about investing in property.
Whether you’re a first homebuyer or an investor, iLender has access to the widest possible variety of loans from first home mortgages and investment mortgages to interest-only mortgages.