Investment Property
Grow your home portfolio not your stress levels
Property investment is the single largest form of investment in New Zealand and part of Kiwi culture. Successful property investing calls for careful planning. You need to find the right property which will secure your financial future. To do this you need to seek expert financial advice to understand the financial commitments involved with an investment property to ensure you achieve the best results.
Property investment can be a rewarding experience if you are looking to achieve one of these objectives:
Build your future income
Rental income from investing in a property can help you build your overall income if you don’t want to rely on your own salary / business income or superannuation income in the long run.
Diversify your investment options
As an investor, you may be looking to spread your risk and apart from investing in stocks, bonds and bank deposits, investing your money in property can be a good option to diversify your risk. Returns achieved by each asset class vary over time.
Secure your children’s future
There is an ongoing demand for property as New Zealand population is growing and housing supply remains tight. Historically, the prices of houses have almost continuously risen and to help your children in the future to get a foot on the property ladder, you may want to invest in property now so your children have a helping hand when they grow up.
Make long term profit from growth in property value
If the property market is booming and values of the property are going up every year, you may want to invest in property for the long term.When it comes time to sell you should take accounting & legal advice in respect to the possible taxation implications.
100% Loan to purchase investment property
Depending on the value of the equity in your current occupied home, bank may approve you 100% loan towards the purchase of the investment property.
Equity or cash deposit
Whenever you purchase a property you will need to put some deposit towards the purchase of the property. The deposit typically needs to be 20% of the purchase price of the property when the property is a new build property and 30% deposit when the property is an existing old house.
This deposit can come in two ways: either through cash deposit or by using the equity in your current home. Home equity is the difference between what your property is worth today in the market and the present home loan on the property. The beauty of home equity is that it can let you purchase your ideal investment property without a substantial pool of spare cash.
How Global Finance helps you get started in property investment
Choose the lender with the best offer
Secure maximum loan approval and increase your options
Increase returns by securing competitive interest rates
By engaging with multiple lenders, we negotiate competitive interest rates for you to ensure your interest costs are minimised and you can get the maximum return from your rental investment.
Cash contribution from banks
We negotiate with the banks a cash contribution on the new loan wherever possible.
Correctly structure your loans
Often taking an additional loan to purchase a rental property can put a stress on your ability to pay off the loan on your own property as quickly as possible. We advise you on how to structure the loan for your rental property so you can still repay the loan on your property in the time frame that is suitable to you.