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At this meeting we look at two key issues that you will need to consider prior to the purchase of an investment property. This is covered in two parts:
• THE FOUNDATION - getting set up for successful property investment
• INVESTOR STRATEGY - planning for successful property investment
The duration of this meeting is 1 to 1.5 hours and there is no cost.
THE FOUNDATION
Getting established correctly prior to the purchase of an investment property is crucial and is an area that many investors get wrong.
Doing it right will help you to:
• achieve the best return from your property investment(s)
• grow your property portfolio faster
• reach your financial goals sooner.
The Foundation looks at a number of components:
Your Financial Plan
Many New Zealanders are concerned about their retirement – they want enough money to retire comfortably but don’t have the means to save. Long term “buy and hold” residential property investment can be the answer. This is the starting point of your property investment plan.
We will:
• work with you to identify your realistic retirement goal/s
• use a financial planning tool to calculate how much you will need to save to achieve your retirement goals
• give you an indication of your property investment potential today
• demonstrate how property investment could help you achieve your goals
Ownership Structures
Investment property can be owned in a range of entities - personal names, partnership, trust, company, LAQC etc. We will look at these options to determine which is best suited for you. Your decision will usually involve your accountant and/or lawyer and your ownership entity (if any) is set up before you buy a property.
Building a Professional Team
Successful property investment requires the advice and services of a number of professionals including lawyers, accountants, property managers, valuers, building surveyors, tradesmen, insurance brokers, etc.
Professionals that are experts in their field and who understand the demands of property investment will make a big difference. If required, we have a pool of qualified professionals we can refer you to - saving you the hassle and cost of finding them yourself.
Maximising your Tax Benefits
Taking full advantage of the tax benefits that are available will greatly improve the financial performance of your investment property.
For example, Depreciation is something that many investors fail to take advantage of, largely because their advisors (accountant and/or lawyer) do not fully understand the Inland Revenue allowances. An optimum Depreciation Valuation can increase the return on a $450,000 property by $40 per week.
Tax refunds is another area that is often not fully utilised. Most property investors, who are PAYE wage or salary earners, receive their tax refund at the end of the financial year. What they don’t realise is that they can receive their tax refund more frequently (weekly, fortnightly or monthly as they get paid) thereby increasing their weekly cash flow.
Property Management
Effective tenant and property management is a very important aspect of property investment. Many first time investors try to save money by taking on the landlord responsibility, however, they do this without fully appreciating the skills and tasks required.
As a result they often:
• under-rent the property.
• have high vacancies and maintenance costs due to poor tenant selection and management.
• have a lot of unnecessary stress - which can often result in the early sale of a property.
Professional property management solves these issues while giving you the freedom to carry on with your life.
INVESTOR STRATEGY
We maintain an extensive library of data and forecasts on the Wellington property market, together with general property investment information, to help you with your current and future investment strategies.
 We help you develop a personal property investment strategy – by looking at the:
Property Location
Some areas in Wellington will have better than average capital gain and rental growth - the drivers for this are population growth, demographics, lifestyle trends combined with land scarcity. Knowing which areas are predicted to have property growth will help you make better investing decisions and help you reach your financial goals faster. We have a number of forecasts from Statistics New Zealand and various City Councils to help you identify where these areas are likely to be.
Investment Return
Most clients want the return (rent & tax refund) from their investment property to cover all the outgoings from day one, but some are happy to fund an initial loss on the expectation of higher capital gain over time. The choice is yours.
Property Type
There are a wide range of options:
• stand-alone house
• terraced townhouse
• purpose-built apartment (old)
• purpose-built apartment (new)
• converted apartment
• multi-income house
• block of flats (one title or multi-titled).
Type of Tenant
There are a number of options:
• young professional (post-university)
• professional (late 20's to 40's)
• corporate
• family
• student.
Click here ... to arrange your Total Property Investment Initial Meeting.
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