Darren Pratley

Darren Pratley - Director
The Home Loan Group (NZ) Ltd

Residential Investment — A Pathway to Wealth?

Why Invest?

Recent publicity by the Retirement Commissioner and the referendum in late 1997 on compulsory superannuation, have focused public attention on the necessity of New Zealanders to make provision for retirement. A healthier lifestyle and advances in medical technology mean that retirement may well be for a much greater period of time than for previous generations.

Our company firmly believes residential investment property represents part of a sound pathway to longterm financial success.

Why Residential Property?

One of the attractions of residential real estate for investment is that it is accessible to a larger number of investors. Most people feel they possess some knowledge of the human need for shelter and perhaps as a result of home ownership, feel they "know the residential property market", particularly in their city or suburb.

Despite comments from some quarters, returns from residential property can be excellent. This does not mean any rental property will perform well; obviously such issues as the location of the property and the type of dwelling need to be carefully considered. Generally though, property located in a large town or city with a diverse economy is likely to result in high tenancy levels and good capital growth. A smaller population centre, which is dependant on a single or few major industries, may represent a greater level of risk.

Why Is Residential Investment Property A Good Investment?

  • It generates an income stream
  • It can reduce taxation, thereby maximizing your return
  • It offers a tangible form of security
  • It provides access to additional funds without a need to sell
  • It gives the investor personal control over their investment
  • It offers tax free capital gain

How do I Get Started:

One of the advantages of residential investment property is that you don't necessarily require capital outlay to participate. If you have a good equity in your own home and a reasonable income you may be surprised at your ability to commence building an investment portfolio. Our company provides a comprehensive service to investors covering such aspects as how much you can spend, how to structure your borrowing for maximum tax benefits, we'll source and arrange a finance package to suit your needs, help you decide what and where to buy. We'll even suggest a good real estate agent, solicitor, valuer, and taxation consultant or property manager to help ensure your investment runs smoothly.