Investing in Property
Carefully chosen and managed rental property investments can pay good dividends over time, but there are pitfalls. First-time investors are advised to do their homework first and get a good understanding of the rental market, national property trends, as well as legal and tax implications.
Your Professionals agent can help you in more detail. In the meantime, below are some good guidelines about things you need to know when considering either a Residential and/or Commercial investment property.
What to look for in a residential property to get the best return and ensure you have happy tenants;
- a light, sunny aspect
- in generally good condition - interior and exterior
- a low maintenance building with a small, easily-maintained fenced section
- some private outdoor areas such as a courtyard or terrace
- at least two good-sized double bedrooms - preferably three bedrooms
- a functional bathroom and kitchen with a dishwasher
- a neutral décor - including carpets and wall colour / covering
- handy to local amenities such as shops and schools, or close to public transport
- off street parking (essential) and ideally a lock-up garage
We strongly advice to help manage your property investment, you engage a Property Manager. This takes all the stress out of managing your investment. At Professionals, our offices can help you with this service, if there is anything you are unsure of please contact us for further information.
Why use a Property Manager?
As a real estate investor, the last thing you want is to deal with the day-to-day hassles of property management. Particularly if you have more than one investment property. Our property management service lets you carry on with normal life undisturbed by rental property and tenant-related issues. And as an investor, the cost of the service is tax deductible.
All Professionals offices are licensed under the Real Estate Agents Act 2008 and comply with the Acts requirements around trust accounts and audits. For all the information you need to know to give you a good understanding of what is involved in managing your investment property, read the tips in our e-book ‘Pathway to Managing Your Investment Property’.
Our services include:
- Rent appraisal
- Finding and interviewing good tenants
- Credit checks
- Regular property inspections and reports
- Maintenance management
- Bond lodgments
- Collection of rent
- Payment of bills
- Tribunal representation
If you require further information please contact us.
Commercial property investors can look forward to good rates of return, provided they choose wisely and do their homework. As with all investments, you should take professional legal and financial advice.
There are many options when it comes to investing in commercial property, these range from offices on a single floor to entire buildings. They include light industrial units, warehouses, showrooms and retail premises. In many cases, commercial property can be purchased with tenants and leases in place.
Before you buy a commercial investment property check the following; make sure obtain a Land Information Memorandum (LIM). This is a comprehensive report containing everything the local council knows about a property or section and usually include:
- Potential erosion, avulsion, falling debris, slippage and possible hazardous substances
- Permitted land use and zoning restrictions
- Private and public storm water and sewerage drains
- Unpaid rates
- Consents, certificates, notices, orders or requisitions affecting the land or buildings
- District Plan classifications that relate to the land or buildings
- Any information relating to the property supplied by network utility operators.
There are various ownership options when buying a commercial property these include:
- Buying as an individual
- Buying as a partnership
- Buying through a company
- Buying through a trust
When purchasing a commercial investment property, make sure you take professional legal and financial advice before deciding which option is best for you.
Buying the commercial property
Before you make an offer, consult your lawyer. Your lawyer and your Professionals agent will assist with the offer to purchase and the terms and conditions of any tenant lease. Your lawyer can also advise on whether you’ll need to pay GST on the property.
Make your offer subject to certain conditions, such as arranging finance, and approval of the terms and conditions of a tenant’s lease. The property cannot change hands (and no one else can buy it) until those conditions have been met by an agreed date.
If you would like assistance in finding the right agent to help with your investment decision, please contact us.