There are actually many rules for real estate investing, so many that we could probably write a Connect Realty property investing book! However, these are some of the key rules that we think you should consider when you are about to purchase your first investment property.
1. Goal Setting
We recommend you set specific goals for your property investment, or investment portfolio. This isn’t your wish list, but rather clear and detailed goals that you want to achieve by purchasing property as an investment. Be smart about these goals, and remember that property should be a long-term investment. Things to consider include the number of properties you want to acquire, your annual return on your investment properties, type of properties you want to own etc.
Educate yourself. The more knowledge you have about the location, the market, future council plans etc, the better informed you will be and the more likely you will succeed.
Our years of real estate expertise in the Bay of Plenty property market, including Tauranga, Mt Maunganui and Papamoa, means we can give you key advice about what areas are growth areas, where there is high demand for rentals, the types of rental returns you can expect etc.
3. Don’t Speculate
We recommend you consider your property as a long-term investment. Even though Auckland is experiencing un-seen growth in house prices, you never know when a market will peak. We think it is wiser to not chase after fast appreciation, but to invest in property where the numbers make sense from the beginning.
4. Find A Good Mortgage Broker & A Great Accountant
We recommend shopping around when it comes to arranging a mortgage for your investment property. Mortgage rates are competitive in the current housing environment, so take advantage of this and meet with mortgage brokers to see what they can offer you. You may be surprised how much this can save you in fees and charges.
We also believe a great accountant is key to peace of mind for first time property investors. Outgoing and ingoing expenses should be managed by a qualified, reputable accountant. This will become even more important as your portfolio expands. The costs associated with the accountant can be negligible when compared to the savings a professional can bring to the business.
5. Use Professional Property Managers
We may be a little biased about this, but ask any good real estate investor and they will tell you to never manage your own properties. Property management requires a solid understanding of New Zealand tenancy and landlord laws, good marketing skills, and strong people skills to deal with any tenancy issues.
At Connect Realty we provide a high quality property management service to all our clients in Tauranga, Mt Maunganui and Papamoa. We aim to obtain the maximum returns for your investment. We also have the latest market leading software systems that deliver up to the minute reporting.
In fact we are so confident with our service that we offer a three month money back guarantee if client’s are not completely happy!
So if you are thinking of getting on the investment property ladder, call Chris for a confidential chat about your needs and goals. Whether you are based in Tauranga or outside the Bay of Plenty she can provide you with local real estate knowledge and the latest rental market insights, as well as discuss Connect Realty’s property management services. Visit our website for more www.connectrealty.co.nz.