While there are endless ways of investing your money in this modern-day age, historic trends indicate that owning an investment/income property is one of the safest and most secure methods for growing your money.
With the average rental price in Auckland continuing to climb, the annual return you will gain from rent income alone will likely surpass any figure a bank can offer you in a term deposit. With this being said, it’s also important to get the bigger picture of what income property investment means, and the numerous ways it can provide you with a solution for wisely investing your money.
We have compiled the top 5 reasons why a rental property is a wise investment for you, so that you can be better informed for what the property industry can offer you and your money, starting with:
1. Passive Income
An income property offers you the peace of mind of knowing that your money is locked into a secure investment. Plus, once your mortgage’s outstanding balance is low enough, your cash flow will turn positive, generating you a passive income.
Our Financial Advisers / Mortgage Brokers are happy to chat with you about your unique financial situation. We’ll let you know whether an investment property and the rental payments it generates, are a good solution for you and your circumstances.
2. High Return On Investment
House prices tend to rise over time, especially due to inflation and a greater demand for housing than available supply. That means that the right investment property can provide you with a considerable return on your money – especially if you pick the right neighbourhood.
Purchasing a property to make money is one of the easiest and most flexible ways for you to secure your funds. You’ll have the freedom to sell your capital once you’re ready or renovate your property to boost its value as an asset.
3. Low Risk Investment
One of the great benefits of choosing a rental property in New Zealand as your investment, is its moderate risk based on historic trends of high yields. Because you’re buying a physical asset with measurable growth factors and predictions, it’s a relatively secure investment.
With the median price of New Zealand homes continuing to rise, investing in a home or income / investment property won’t just help to cover the expenditure of the asset, but lets you enjoy the growth of your capital gain with supplementary income.
When you’re considering investing, diversity, flexibility and potential for growth are the big three elements to look out for, which is why owning a rental property can provide you with a leading advantage. Whether you’re wanting a small income property to supplement your income, or a larger section as a capital investment, which simply increases in value, investing in property can easily be adapted to your requirements.
With the security of land ownership and a regular supplementary rental income, an investment property offers you real financial gains without excessive risks. Plus, because the property market is incredibly diverse, you’ve got the flexibility of choosing to buy an existing home or build a new one, depending on what’s best suited for your future goals and plans.
5. Banks Are On Board
With banks now backing the new build of homes, both for investment of income properties, the time has never been better for taking the plunge. With ‘Back My Build,’ ASB bank has created a scheme dedicated to building more houses, regardless of whether you are going to live in them or rent them out. ANZ bank has also introduced a new incentive, ‘Blueprint to Build’, that offers a discount on their floating loan rate for new builds.
The scheme allows you to put down a 10% deposit for a turn key property, letting you simplify the build process by working with a single developer, concept to completion. You’ll get the benefit of a fixed price contract and a more straightforward, streamlined construction experience. The time to build is now.
Want To Know More?
If you are interested in investing in an income property or exploring your home loan options, get in touch with the team at Platinum Mortgages. We can offer you bespoke solutions for all of your home loan queries, as well as comprehensive market advice that will ensure you are fully equipped to make the best decision in your financial investments.