If you’re looking for an investment opportunity in Whangarei and wonder whether buying a rental property is a good investment option, then read on.
From setting investment goals to choosing the right rental property, as with any real estate transaction, you need to do your homework. With careful planning, in-depth research and the right attitude, you can set yourself up with a solid source of passive income now and the prospect of a great return in the future.
In this blog I’ll discuss the benefits of owning a rental property and outline a few key elements you need to consider.
So, you want to be a landlord? Join the club!
Owning rental properties is a popular investment option in NZ. Kiwis have been in love with property ownership for a long time, and the number of people earning an income from rental properties continue to increase.
What are the benefits of rental property ownership?
So why is the prospect of being a landlord or lady so enticing? The short and simple answer is that buying property is seen as a relatively low-risk form of investment which gives a good return. The general rule of thumb is that most properties will double in value over a 7-10 year period, while earning an income at the same time. That’s a better deal than what’s on offer from most major banks!
You may have heard the term ‘passive income’ in recent years, which refers to a form of income that involves minimum input from you. When set up properly, owning rental property is a great source of passive income.
What’s your investment plan?
When you embark on any investment, you need to know what you want to achieve with it, and make it work for you.
Buying an investment property is no exception. Deciding what you want to get out of your rental and formulating a clear plan is the best way to set yourself up for success. For example, is this going to be a long-term investment or a relatively short one? Do you plan to rent out your investment property for a few years and then move into it later on? These are a number of options you need to look at before you take the plunge and buy an investment property.
Choosing a rental property to buy
When you buy a home to live in, it’s an emotional process. You’re looking for that property that not only meets all your needs and wants, but also feels right.
When it comes to buying rental properties, however, it’s time to look at real estate through a less emotional lens and to treat property investment as a business.
In order to choose the right investment property, you need to think about the type of tenants you want to attract – families, singles, professional couples of retirees? This will give you a clear checklist of features the rental house you buy will need.
For example, tenants with school age children will prefer to be close to schools and after school activities and a large back yard. Professionals will require a property that meets their high standards.
Choosing a low-maintenance property is also a smart move to make this a passive income option. The less work you have to do as a landlord the better your return.
Top takeaways for property investment
- Have a clear investment plan
- Adopt a business-minded approach to property hunting
- Identify the type of tenant you want to attract
Buying a rental property is a good investment option when you embark on the journey armed with the right attitude, clear goals and sound research. As always, you can always turn to a real estate agent for expert advice.
If you’re in the market for an investment property and need some guidance, I’m happy to help. Check out my listings to see what I have on offer or feel free to contact me today for no-obligation advice.