The PropertyApproach team provide property New Zealand real estate statistics, property reports and property investment consulting / coaching for New Zealand property investors and those wishing to enter the market of New Zealand property investment.
If you are new to the New Zealand property investment scene, you will be asking yourself what suburb to buy in, do I purchase a house or unit, what should I pay, what rental can I demand, what suburbs are going to boom, what is my exit strategy - to name a few of your questions. Well the best place to start is with New Zealand property statistics. Study the NZ statistics for the property market including previous trends and patterns, current values and more. Only once you understand the market can you begin to develop your property investment strategy and enter the market. There are plenty of great New Zealand property statistics out there already, the challenge for many entering the property market, is knowing what to look for and how to interpret the NZ statistics and trends.
REINZ is a great place to start for raw New Zealand property statistics (http://www.reinz.org.nz). Otherwise you can look to someone like PropertyApproach who can provide you with interpretations or even training on how to understand these real estate statistics. Here are some tips to get you started on what you should consider for an investment property:
- First ask yourself if you want to manage the property yourself or use an agency? Also, will be you performing the repairs or using professionals? Both have their advantages and disadvantages. This decision however may help you to eliminate a wide range of suburbs due to accessibility for inspections and basic repairs.
- Are you likely to want to live in the property yourself at a future stage. This may also have an impact on where you purchase your property.
- As with most things in life, budget generally plays a roll. Speak to a bank or mortgage broker about your borrowing power. Once you know your buying range you can start to access investment properties with a more targeted approach.
- Now it is time to get into the New Zealand real estate statistics. There are two things that savvy property investors are looking for, they are strong capital gains (increasing value of the property) and/or a strong yield (generating positive income from the rent). Just because a property doesn’t have one or both of these attributes now, it’s not to say it won’t in the future. As infrastructure expands, housing prices increase, supply and demand shifts, etc, etc the capital gains and yields can begin to move in the right direction – often creating what is referred to as a ‘boom’. So one approach is to study the New Zealand statistics of high performing (strong increase in medium value) suburbs, then look to neighbouring suburbs which haven’t experienced the same growth.
- etc, etc
The first step however is always to study and understand the New Zealand property statistics.