At Connect Realty Property Management we always say there are two key factors in property investing. First an investor has to find the right property to purchase, which means knowing and understanding the local real estate market. Secondly, an investor has to know how to manage their investment so they ultimately make a profit. Both of these factors require professional advice and support.
- Have a Balanced Portfolio
The Western Bay of Plenty, and Tauranga in particular, are seeing unprecedented growth. The latest news is that Auckland buyers are snapping up investment properties in the Tauranga region without even viewing them. As experienced property managers we do not agree with this type of rushed or ill-informed property investing.
In most locations property increases in value over time, but an investment strategy requires clear short-term and long-term goals as well. Sure some investors are looking to turn-over the property quickly, making a small profit on capital gain alone. However smart investors will keep the property long-term to take advantage of not only a rising market in trending suburbs such as Papamoa, but also rising rental returns in the whole of the Tauranga area.
Our advice is to have a balanced property investment portfolio that spreads risk and balances highly speculative investments with safer lower-yielding ones. Given the current state of the real estate market long-term property investments (over 12 months) are looking very strong for our area.
- Have A Forward Thinking Plan
As part of our property investing service we can provide you with historical trends for suburbs in the Tauranga region, which can give some invaluable insights on property growth and rental returns. But property investors also need to look to the future and predict which areas will have strong potential for greater than average growth. We can provide information on key indicators such as new developments or upcoming redevelopments, transport infrastructure plans and even new schools and Council zoning plans.
In the Tauranga area, and Papamoa in particular, family homes are showing fantastic potential for capital growth, especially with respect to the value of the land. Tauranga, Mt Maunganui and Papamoa are especially attractive to families with children because of their proximity to the beach, shops and good schools. New motorways have also made commuting times much better for these areas.
Apartments are proving to be popular for young professional singles and ‘empty nesters’. This is especially the case if the apartment has great views and a car park provided. Other selling points include extra facilities such as a pool or gym situated onsite. We manage a number of apartments for landlords in Mt Maunganui and along the Ocean Rd and find these to be well-built and extremely marketable.
We are happy to sit down with you to identify your target neighbourhood and/or target tenant. Once you have agreed on the area and style of property we can then help you set a price point for rental return. This information will be invaluable in helping you decide what property to invest in.
- Have Your Property Managed
Investors often underestimate the costs and time involved with owning an investment property. Besides the initial legal costs and paperwork, being a landlord means you will also have to consider ongoing costs such as rates, maintenance and insurance. On top of this investors also need to have a good understanding of property law in New Zealand, including tenancy and landlords agreements and laws.
Having an experienced property manager takes the pressure off an investor. The best property managers do the right marketing to find a suitable tenant, they take care of the all the legal requirements and necessary paperwork, and they ensure your property is maintained to a high standard throughout its tenancy.
If you require more information about investing in the Tauranga, Mount Maunganui and Papamoa areas then give Chris a call. Chris and her team at Connect Realty also provide a rental and property management service for these areas and have a wealth of experience and advice to offer you.
Freephone 0800 333 221 or email [email protected]