Great Reasons To invest in Real Estate
- Real Estate has been the safest haven for capital in the current financial hiatus. New Zealand median sale price fell 4.41% from January 2008 to January 2009. In the same period NZ share market fell 33%, Australian Share market 41% and MSCI World market 42%.
- Immigration is expected to show signs of increase with less New Zealanders heading overseas and increased immigration from Europe as a result of harder times, increasing pressure on supply of homes
- Unlike the UK & USA there isn’t a surplus of homes in New Zealand. In fact a shortage currently exists.
- Greatly reduced numbers of new building consents, and much reduced levels of construction of new property, will increase pressure on the supply of properties.
- Low and falling deposit rates in the banking system means returns on capital are diminishing and a reduction in investment incomes is taking place
- Demand for rental property will come under further pressure as first home buyers struggle to obtain finance with higher deposit requirements
- There is a window of opportunity to obtain and lock-in low interest rate loans that will not exist indefinitely. Affordability levels are uniquely high.
- Real Estate offers an opportunity for capital growth over the median term. Even if the market drops a little further it will not do so indefinitely. Many of the factors above are strong imperatives for an eventual rising in price.
- Currently a wonderful limited opportunity exists to buy property at it’s most affordable levels for many years.
- Intelligent and continuing investment is mandatory if retirement is to be a pleasant experience.
- Investment in Real Estate is easy and safe and is able to be managed individually. Most kiwis are well able to buy/sell and let out a property. It is not an arcane or complicated business
What to look for in an Investment property
Desirable attributes for easily lettable properties:
- Generally good condition
- Outdoor living - some private area, courtyard, terrace etc.
- Good size bedrooms - at least 2 double bedrooms, preferably 3 bedrooms
- Good, functional kitchen and bathroom
- Neutral décor - e.g. carpets
- Location
- Garaging - off street parking is essential, lock-up preferred
- Dishwasher preferable
- Low maintenance, small section
- Sun!
- Fenced Property




