Investing in property is a popular financial decision for many New Zealanders. House prices in New Zealand are continuously rising, with the market experiencing record highs. Property is a reliable, accessible, and diverse way to receive returns on your investment. Here are the main reasons you should invest in property:
More reliable than other types of investment
Investing in property is more predictable and secure than investing in shares or other types of investment. While no investment can ever guarantee returns, property has historically proven to be a relatively stable and reliable investment. On average, New Zealand house prices rose by $332 a day in 2020 with house prices in the Bay of Plenty rising 17% in the last five years.
You can add value and leave something tangible
With other types of financial investment, you have little to no control over the eventual value. When you make a well-educated property investment, you can add value and create higher financial returns. Renovating your home is a good way to ensure that the house will increase in value. Additionally, investing in property guarantees that you and your family have a tangible sense of security. There will always be value in having a home which you can live in or sell.
Property investment is accessible and easy to understand
Property investment is the most accessible investment for first-time investors. Financial investment is daunting and requires extensive time and effort to understand. However, there are countless free resources that make property investment accessible to anyone. If you put in the time to do thorough research, you can make a well-informed and educated investment. It is important to know which type of returns you would like on your property before you buy. Some properties will make higher returns as a rental than relying on capital gains, and vice versa.
Different options for returns
There are two types of returns when you invest in property: capital gains and rent paid by tenants. Property is considered a long-term investment, with significant financial growth occurring every 7-10 years at least. Capital gains refers to the increased value of your home over time. If you want returns sooner, renting out your property is a great option. Receiving rent from tenants is a great way to generate a steady stream of passive income. However, having good tenants who won’t cause damage to your property is essential. Using a professional property management service is key to obtaining and keeping good, reliable tenants.
Property has long been considered a reliable and accessible means of investment. There will always be risks to investing your money, but through education and diligence, you can make a well-educated investment with high chances of great returns.
We offer a free rental appraisal service so you can see how much money your property could make as a rental. If you decide to rent your property out, we highly recommend using a professional property management service. Get in touch with us today to see how we can help you protect your investment.