Property Investments NZ
Are you considering investing in property in New Zealand? Property investment is a popular option for wealth creation across the globe and especially in NZ, but not everyone has the knowledge and expertise to be successful at it.
Investing in property is a great way to build your net worth, diversify your investment portfolio, generate cash flow, and even build your retirement fund. Our experts at MyFuture have a wealth of experience in helping clients develop property investment portfolios that are designed to achieve their long-term financial goals.
There are many different ways to invest in property and create wealth, and how you choose to proceed depends on your personal goals, risk tolerance and what resources you have available to you. Having an ally to navigate the waters of property investing can make all the difference.
Property Investments In New Zealand
There are some particularly great benefits to investing in property in New Zealand:
- The right property, in the right location, can help you create long-term wealth with the best tax efficiencies.
- You can leverage borrowed money to purchase property investments and benefit from higher rates of returns (because you’re using someone else’s money to invest).
- Property in New Zealand has no stamp duty and once you have held your property for long enough (currently either 5 or 10 years depending on the property purchased), any property gains are generally non taxable.
- Property is tangible and will physically survive any market meltdowns unlike shares or stock.
- Generally, home and property prices will increase in value over time providing a steady return the longer you own it.
These are just some examples of the many advantages to investing in property in New Zealand. Our Qualified Financial Advisers can share a wealth of knowledge and guide your property investment planning from start to finish.
Why Should I Invest In Properties In New Zealand?
Real estate is an appealing long-term investment vehicle for a lot of people because it offers many attractive benefits. In particular, investing in property in New Zealand can provide:
Cash flow
Owning property to rent or lease can create positive cash flow as long as you have something left over once the mortgage and any expenses are paid. Even starting off small, once you put more equity into a mortgage, you can expand your property investments as well as your cash flow.
Our property investment experts have the knowledge and the know-how to increase your cash flow and build a steady income stream, or even replace your day job and support your retirement plans.
Appreciation
When a property’s value increases over time, it is said to be appreciating. While there are no guarantees that property will appreciate, understanding the market conditions and making smart choices within that environment can protect your investment.
Diversification
Managing risk is a large part of investing. Diversifying your investments spreads them out across different asset classes, sectors, and strategies so that a downturn in a particular area is less likely to impact the whole portfolio. While there is risk when investing in real estate, by having diverse holdings consisting of properties, shares, or other investment vehicles, you can mitigate your risks.
Tax deductions
Tax deductions are not the main reason that most people invest in real estate, but they can provide a significant advantage. Despite recently introduced tax policy changes, there are still several tax incentives and deductions offered to real estate investors. Our experts at MyFuture can work with you to navigate the tax benefits available to you when investing in real estate.
Return on investment
Return on investment measures the performance of investment properties. It is calculated by the percentage of invested money that’s recouped after deducting associated costs. It’s important to investigate the potential ROI on a property before you invest as there are always many variables at play.
There’s no guarantee you will get a ROI from your real estate, but our qualified financial advisers can help you assess potential ROI and navigate the complexities of property investing.
The power of leverage
Property investments have a built-in benefit of the power of leverage. The bank will lend you the loan-to-value ratio (LVR) for investment property loans in New Zealand, whereas you may not be able to borrow as much to invest in other assets such as stocks. This means you’re able to increase your spending power and use leverage to generate higher returns.
Reach out to us today for your no obligation FREE Discovery Session to make the most of your property investments.
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Is New Zealand Property A Good Investment?
Property investment in New Zealand is considered one of the most stable asset classes, and when combined with a gearing strategy, has been proven time and again to be one of the most efficient ways to help you build wealth in preparation for your retirement.
In general, while the price of property in New Zealand does fluctuate, over the long term, the right property, in the right location, has been proven to increase in value over time. New Zealand is consistently ranked well for quality of life, education, health care, air quality, and leisure activities meaning property in New Zealand is attractive and is likely to continue to appreciate over the long-term.
With the help of our property investment specialists, you can explore all the options available to you to help you meet your personal goals. Let us put our experience to work and reach out today for your FREE Discovery Session.