PROPERTY INVESTMENT REQUIREMENTS
Requirements for Property Investment
Property investment is not as easy as it seems and if not done right can cost you a fortune.
Lot of investors have lost lot of money and time so when considering to venture in property investment in New Zealand, consider the following:
Property Investment Finances
Finances: before indulging in this journey of property investment in NZ. First you need to assess your financial condition.
Understanding your financial state will give you a clear picture of the property you can afford to purchase comfortably without straining your funds.
Property Investment Purpose
Purpose: what are your intentions in property investment? Having clearly defined goals will enable you to make smart investment decisions; as you will be more objective.
Property Investment Strategy
Strategy: Choosing a suitable investment strategy will ensure that you attain your property investment goals. The approach may include purchasing property with good discount such that the purchasing amount is lower than the valuation price.
Buying large chunks of land and subdividing into smaller segments each with their titles, buying off-the-plan property to resell after the project is complete, e.tc
Understanding Inherent risk
Inherent risk: like any other investment, property investment also bears its risks. It is advisable to understand the inherent risk of any investment before committing your money.
Your financial situation and your age would dictate your risk appetite. For example, if you are looking for a retirement investment to generate income, you will tend to choose the less risky investment plan.
Negative Gearing Property Investment
Some investors argue that it is better to invest in negatively geared property to take advantage of the tax deduction benefits and future capital gains while the investors who are looking for positive cash flow would instead invest in positively geared property which brings in monthly income. The decision to choose either mostly depends on the investor’s financial situation and goals.