Why Buy Investment Property?
Purchasing a residential property as an investment can be an excellent way to increase wealth over the medium to long term, and it will also provide a passive income in retirement.
A successful investment strategy will encompass:
- Sound buying decisions
- Good taxation planning
- Good property management
- Good mortgage management
Your investment property should be arranged in such a way that the tenant and the Inland Revenue Department pay all your expenses and help repay the mortgage.
You must also consider how your property will be managed and what is involved in presenting it to potential tenants. You can manage the property yourself or you can contact our Property Management Team, who we believe are experts in property management. Phone 06 757 9993.
New Zealand is a good place to buy an investment property for the following reasons:
- No capital gains tax
- No stamp duty
- No limit on losses claimable
- Stable interest rates
- Strong demand for rental accommodation
- Long term potential for significant capital gain.
You must recognise however, that owning investment property is a business and you should consider all the impacts it will have. There are legal and taxation issues involved in owning a property from which you earn income, which you must consider before you buy.
If you do it correctly, it is a wonderful way to build passive income.
So why would you choose Western First National? We are here to help carry the load for our investors and to provide unforgettable service! In addition, clients choose us because they want to deal with a company who has a division with a sole focus on property investment management, great communication and on providing exceptional rental property management.
We can also have someone in our Team assist investors with finding a new property to add to their portfolio.
For some selling tips click here