Many people agree that investing in property is one of the most proven investments for creating wealth.
New Zealand has a wide variety of properties across areas, including residential, commercial, lifestyle and rural. Through the years, we have seen different areas of New Zealand flourish, gain in value, change, and become home to investment opportunities.
Houses have the ability to double in value over a period of time, and in many cases, can be tax free. Investing in Auckland particularly, has a lot of potential, considering the huge influx of people wanting to live here, whilst the supply or the ability to produce an adequate number of houses just cannot keep up.
Despite what the media says, or a number of commentators have said about a ‘bubble going to burst’ of price rises, time and time again, we have seen that property prices continue to grow. Many people believe that there is no bubble, but a fundamental supply and demand issue, which can contribute to appreciating house prices, and hence, an investment opportunity.
Buying a property for investment is different than buying a home to live in. It becomes a matter of money, dollars and growth, not a matter of what type of home would be nice for you and your family to live in, entertain guests, come home to, and so forth. You probably would buy an investment or rental property in different suburbs you would normally live in. Examples of these can be up and coming suburbs, as opposed to ones that do not expect any growth or government investment any time soon.
Choosing to invest in residential property can have benefits that are worthy of consideration. Relatively speaking, occupancy rates of residential properties are much higher than those of commercial properties. It’s rare to see most residential properties go without a tenant for an extended amount of time. But it’s not rare to see a commercial property be “For Lease” for weeks, months, or even years.