Investing in Property is often the preferred first step onto the property ladder.
While there are a lot of incentives for first home buyers in New Zealand – owning an investment property (IP) probably has more advantages right now over owning a PPOR (principal place of residence).
The number one advantage of owning an IP is affordability. There are more pricing options available as you can elect the style of property that suits your wallet or purse. The IP could be a standalone two or three bedroom house or an inner city apartment or both!
When your IP is rented out the rental income achieved may cover the home loan interest and principle payments thus over time the mortgage is actually paid off by your tenants.
The investment property can also be in located areas the home owner would not elect to live in and this is one of the major incentives for getting started with investment properties over a PPOR.
If you’re a young person you may not want a PPOR as you may be transient in your life and career and also not ready to settle down in one location. Investing in a rental property allows you all the lifestyle flexibility you need.
Where there is a will there is a way to get onto the property ladder in New Zealand. PropertyTutors run The Masters twice yearly. This one day event is held in Auckland and Wellington by Sean Wood and Steve Goodey. It’s is an eyeopener as to what can be achieved with property investment.