Investing in Rental Property

If you want to rent your property or need to rent a property, goodGround Real Estate Ltd will be delighted to assist you.
Contact the office on 09 432 1077 or email martin@goodground.com

Why Invest in Property?

Investing in property can offer two main benefits which are tax advantages and capital growth.

In the beginning income from rentals wont exceed your outgoings on a property, principally the costs of servicing the loan. However when the property increases in value, rents have tended to rise faster than costs, and the property will generate a net income.

Remember that costs can be claimed against your taxable income.

When the time comes to sell, current tax laws means you don’t pay capital gains tax. So the money you make from the sale is tax free.

No advisor would recommend property to the exclusion of other investments. A strong portfolio is a varied one: with investments spread across different asset classes, including property, shares and cash. It’s also important to recognise that no investment is risk free. Some people have made their fortunes through property, but it’s also possible to lose money.

How do I get started?

Talk to us. We’re more than happy to talk property any time, with anyone! We’ll even shout the coffee. Nothing backs up what we say more than your own research so dont take our word for it alone..

Things to look for in an investment property

The two main ideals to a good investment property are desirability and low ‘running’ costs. Desirability is an individual thing and therefore subjective, but experience shows that the following elements make a property easier to find tenants for:

• External living. Whatever the size even a small area- deck or terrace- adds enormously to a property’s appeal.
• Good sized bedrooms. At least two double bedrooms are preferred.
• Good well designed kitchen and bathrooms.
• Neutral decor. While not everyone loves neutrals, neither do many people hate them. Bright colours can be a reason not to choose to rent a property.
• Location. Location Location!
• Garages. Lock up garaging is best, then a car port. Failing that, off street parking.
• Dishwasher. A nice to have
• Low maintenance, small section. Less work for the tenant and less work for you.
• Security features including fencing, great for small children.

Where to buy

• The main advantage of buying an investment property is that the emotional issues are removed that tend to come into force when you a buying a property that you will call home.
• Be objective. Have a check list; you want capital growth, so buy in an up and coming area with growth. These are often not the most glamorous suburbs. Note that high capital gains areas may also return lower rental yields.
• Do your own research. Good areas for renting will have easy access to transport, school zones, shops and leisure facilities.

What to buy

• A good investment property is one that you can afford and that you can charge a decent rent for.
• If the property you are interested in is currently being rented, research its history of tenancy and check if there have there been periods where it has been unoccupied? If so, ask why.