Pocketing from Property Part One: Why Bother with Investing And What Does It Take?
Property investing has been a big subject locally, with many people finding success in the venture, especially in the Auckland region. Overseas investors and local entrepreneurs have made a comfortable living through the investment that they almost make it seem easy, but what does it truly take to build a property portfolio?
The main (and obvious) difference between investment property and owning your own home is that (when done correctly, and smartly) you will make returns on your investment through an ongoing income, usually in the form of rent from tenants. Furthermore, if the property increases in value over time and you decide to sell, a profit can be made if it is sold for more than it was purchased – this is called capital gains.
So far it seems too good to be true, but managing an investment property isn’t all about sitting around waiting for the money to flow right in, having a property portfolio is no passive investment. Investing in the property means more than just purchasing the house, you’ll need to make some important decisions on how you will grow and manage your investment, these include:
- Where and what kind of properties to invest in
- Renovations (if any) to increase or maintain the properties value and rental returns
- External help, or do it yourself? Renovations, repairs, and property management
- How you will structure your mortgage(s)
Most importantly doing the research and structuring your strategies correctly from the get-go is a sure-fire way to keep your investments sound and yourself secure.
PFSL offers an umbrella of services such as mortgage brokers, insurance, accounting and tax services, and property managers all under one roof to keep the whole process as smooth as possible.