Investment Buying Tips – it’s not all about location

Purchasing the right investment property is essential for growing your wealth and securing your financial future. If you’re looking for investment property in Palmerston North or Manawatu you’re probably elbow deep finding out everything there is to know about real estate in the residential market in your desired location.

While the age old ‘location, location, location’ might be a major factor in the decision-making process, it’s not the only consideration investors need to be aware of ahead of purchasing property to rent out to local tenants.

In New Zealand, investing in property is a popular investment option, however, there is a misconception that investors should only focus on the best locations when scoping out suitable properties, however, there is far more to it than that.

While property purchased in great locations will usually bring positive capital returns, there are a range of helpful tips for finding the perfect property at the ideal price to suit your lifestyle, business and investment needs.

Here are a few things to consider when choosing the right investment property in and around Manawatu and Palmerston North.

 Know your budget

This is essential before you even consider purchasing and investment property. Understanding your budget, what you can afford and how much you need to pay to maintain your future mortgage payments will help you make your decision about what property is better for your needs. While you may have been influenced by your emotions for your residential home, your investment property should be focused on your financial goals and getting the highest return for your investment. Savvy property investors buy a rental property for cash flow and set it up to ensure the rent covers all or most of the expenses, so ensure you have your budget well and truly clear to ensure you’re getting a property that suits your budget.

Understand why you are purchasing an investment property

It’s important to understand the reason behind why you are purchasing the property in the first place. Are you looking for something you may consider moving your family members into when they reach retirement age, do you want to find a property that you can hold onto for as long as possible or are you hoping to invest and hold onto the property to build your portfolio. Always get a professional appraisal ahead of making a decision on an investment property to ensure you know what you are buying.

Know the demographics of the area

What is in the local area surrounding the investment property you’re interested in buying? Is it near schools, hospitals or medical facilities or even parks and amenities? Ensure you put yourself in your tenant’s shoes and buy in a location that is desirable, convenient to amenities and easy to the local attractions.

Focus on supply and demand –

For a rental property to achieve capital growth you need to ensure there is a demand for the property and there is a growing population of tenants in the area who are looking for property in the properties price bracket. When there is strong demand, the value of the property will perform in the long term so be aware of growth projections and whether there is a shortage of rentals in the area you are looking to invest in as this will help boost the rental income you get from the property.

If you’re looking to purchase a property to rent

You’ll want to consider engaging the services of a professional manager to oversee managing the rent, maintenance, service calls, open house viewings, tenancy agreements, legal issues and anything else that may be required during the time you are renting out your property.

A professional management company with experience with the current rental market will advise and support property owners throughout the entire rental process and will ensure you’re getting the best return on your investment. Professional property managers understand when rental opportunities arise in the local area and are on hand to guide you through the complicated process of being a landlord.

All Ways Property Management services the Manawatu region including rentals in Palmerston North, Feilding, Ashurst, Aokautere and Tararua region including Pahiatua and Woodville. We’re professional property managers in the business to help investors find the perfect property and also get the highest returns from the investment.

The expert team at All Ways Property Management are driven to perform and achieve amazing results in the local market. We manage houses, units and all types of residential properties located within the local area.

For prompt service and professional advice contact the team today from All Ways Property Management Services

On (06) 376 6678 or (027) 249 8295 or email enquiries@allwaysproperty.co.nz today.