PROPERTY INVESTMENT COST
Property Investment Cost in New Zealand
During the process of acquiring property, you will incur different costs at different stages of the investment process. Let us review some of these costs, shall we?
Residential property might attract taxes, mainly when you sell within two years of ownership. Engage with a Professional tax advisor for a deeper understanding of taxation fees about residential property investment.
Legal fees: these include the costs of drawing tenancy agreement and arranging for a mortgage, these are usually tax deductible.
Valuation fees: This is the cost of inspection of the property
Insurance: the cost of the insurance policy of the property against financial losses such as fire, earthquakes, etc.
Property management cost: this is where you hire a property manager to take on tasks on your behalf, some of the duties include, receiving rent, handling tenant complaints, looking for new tenants when the property is vacant, etc.
Maintenance costs: these are costs for repair work, eg. Repainting walls, replacing faulty shower heads, servicing the hot water cylinder, etc.
Property Investment Cost:
These are just the main costs; you might incur more along the way. Always keep your receipts for all your expenses, as they come in handy when analyzing the total value of the property.
That way you will have a clear picture of how much you need to sell to make a reasonable profit.