Here’s what you need to know.
Thinking of investing in a rental property? You’re not alone. Demand for quality housing in Auckland continues to outstrip supply with some commentators reporting a temporary dip in the market so now is a good time to consider purchasing your investment property.
Before you start traipsing around open homes, decide on your investment priorities. Are you investing for long-term growth, or for rental return? Houses typically offer greater long-term capital gain if chosen well, while apartments provide a higher yield for a lower purchase price – in other words, more rental return for your dollar. In both cases, you’ll need to hold the investment for at least two years or be deemed a trader (with tax implications).
Apartments can also be easier to improve and manage, because exterior maintenance is taken care of by the body corporate. The body corporate is made up of all the individual owners and sets the rules for the building. As with any neighbourly relationship, personalities are important, so be sure to review the Long Term Maintenance plan and read the AGM notes for the last three to five years. This is a great way to get a feel for the history of the building and the people involved.
It’s also important to understand whether the apartment is freehold or leasehold. With a leasehold apartment, you own a share in the building but not the land for which you will pay an annual rent. There are many different types of leasehold arrangement, so contact your local Quinovic office for expert advice on the potential risks and gains of your investment.
With any property investment, location is key. As Auckland’s traffic congestion continues to grow, proximity to public transport links will be an important factor in capital gain, so be sure to investigate current and planned train links, bus express lanes and ferry services.
For insider tips on location, you can’t beat specialist local advice. With four offices covering Auckland from east to west, the central city and North Harbour, Quinovic will get you sorted. Our specialist property managers can advise on rental returns, body corporate and leasehold arrangements and connect you with trusted advisors such as lawyers, valuers, mortgage brokers and real estate agents to help you make the right investment decision. Once that property title is in your hands, we can take expert care of your investment, handling everything from rent collection to inspection and day-to-day hassles.
Principal | Quinovic Viaduct
027 299 9122 | 09 302 1998