Four tips to successful property investment

Many people ask BUSINESS buddy – “Is it still a good time to invest in real estate? “
The simple answer is it’s never too late to invest in property, providing you seek the correct advice.

Demand is still there, supply is still there and right now,
it is money that is tight due to recent bank restrictions.

However, if the golden rules are followed, such as investing
for the long haul and not committing to more than you can afford, property is a
fantastic option.

Here are BUSINESS buddy‘s four tips to successful
property investment.

Property investment tip one – Create a
property strategy

It is important to treat your investment property like a business and
every successful business has a business plan. 

What do you want to achieve?

A property strategy allows you to establish why you want to invest in
property and set goals.

For example, you may intend to buy high cash flow properties and replace
or supplement your current income.

Or perhaps you have a plan for retirement, which involves investing in
property with good, long-term capital growth prospects.

Either way, creating a strategy with your business advisor is crucial.

Property investment tip two – Don’t
overstretch your finances

As with ordinary home loans, lenders look at what you can
afford to pay when borrowing for an investment property.

If you overcommit to an investment, this can have dire
consequences on your business and your quality of life. 

Exactly the opposite outcome to what your investment was
intending to achieve.

Property investment tip three – Pick your
investments carefully

Although there are several different types of investment
properties, it’s important to remember that cash flow is king. 

Commercial real estate, holiday rentals and renovation fix
and flips can be superb investments and generate huge returns, but they come
with increased risk. 

Should the property market soften, or your properties
experience higher-than-expected vacancy or credit losses, you could find
yourself unable to maintain higher mortgage payments.

If you are unable to make the monthly payments, your
investment is in jeopardy.

Generally, long-term residential rental investments provide
less risk and increased financial stability.

They generate a steady income stream and in time a substantial
retirement nest egg. 

Property investment tip four – Establish
a great network

To really succeed in property investment, you need to get
the right people in your network.

It’s essential to have a great accountant and business
advisor, bank, mortgage advisor, lawyer and real estate agent.  

BUSINESS buddy has all the contacts you need from
Kaitaia to Queenstown to establish a thriving network.

BUSINESS buddy director, Jatin Patel explains about
his experience in property investments.

Jatin Patel gives top tips on property investment in New Zealand

For a free one-hour property investment advice session call
BUSINESS buddy on 0800 283 399.