Some Notes About Investment Property
Purchasing a residential property as an investment can be an excellent way to increase wealth over the medium to long term, and provide a passive income in retirement.
A successful investment strategy will encompass:
- Sound buying decisions
- Good taxation planning
- Good property management
- Good mortgage management
Your investment property should be arranged in such a way that the tenant and the Inland Revenue Department pay the majority of your expenses and help repay the mortgage.
You must also consider how your property will be managed and what is involved in presenting it to potential tenants.
Tommy's Real Estate have developed a close working relationship with Quinovic Property Management and recommend their services; however in the Upper Hutt and Lower Hutt areas our Tommy's Hutt offices are active in property management and will be able to help you.
Learn more about your property management options
New Zealand is a good place to buy an investment property for the following reasons:
- No capital gains tax
- No stamp duty
- No limit on losses claimable
- Favourable depreciation rates
- Stable interest rates
- Strong demand for rental accommodation
- Potential for significant capital gain
- Consistent inbound immigration growth
You must recognise however that owning investment property is a business and you should consider all the impacts it will have. There are legal and taxation issues involved in owning a property from which you earn income, which you must consider before you buy.
Tommy's offer investment property advice to clients through our in-house specialist, Mark Hamilton.
Mark is available to provide clients with general investment advice and has a portfolio of investor properties for sale.
He will also assist our sales team with analysis on the investment value of properties their clients are interested in buying.
