There is a lot of things to consider when investing in property.
The first of these is what are the objectives of your investment; is it to generate long term growth or is it to provide an additional revenue stream?
This is a question that only you can answer however here are some of the reasons why Property Investment is so attractive to so many Kiwis.
- Property is an asset you can touch and feel, it is tangible, you can rent it and importantly improve the value of it.
- There are some fantastic tax advantages available. (even though some of these are under review, there will still be great tax incentives)
- Through leverage ( borrowing) you gain control a larger asset base and gain greater exposure to capital value increases over the long term.
- Appropriate Property can produce an attractive rental income.
- You can manage the property yourself or for a small monthly fee it can be managed by a real estate agent or property manager.
- With the potential shortage of supply of housing and vacancy rates at record lows , property is rented quickly and easily as long as you do not over price it to the market.
- Historically real estate has grown around 10% annually or doubled in value every 7 years (I do prefer to say 10 years though if you look at shorter time frames).
