Ditch the dud: streamline your portfolio

In this month’s NZ Property Investor magazine, we investigate how to identify and offload or upgrade an underperformer.

Recent value increases in most locations across New Zealand mean many investors are holding off buying until they see better returns.

Last year’s regulatory changes around investor lending mean it is harder to secure finance and more crucial than ever that the properties you own perform well.

To boot, interest rates remain low but threating to rise.

That means there’s no better time than the present to hold a magnifying glass to your properties and find out whether you could be getting a better return from a higher performing portfolio.

So how do you spot an underperformer?

In the latest issue of NZ Property Investor magazine, we speak to the experts to find out how to identify a lemon, how to turn it into lemonade or, alternatively, how to recognise when it’s time to ditch the dud.

Here’s our list of signs which identify an underperforming property:

• A property is in a location without industry, job opportunities, infrastructure or amenities nearby.

• Property where the above will disappear in the future due to new infrastructure or big industry closure.

• Consistently bad tenants.

• Maintenance issues that are never-ending.

• Little long term growth.

• Lack of rental increases over time.

• Wrong property type for local tenant demographics.

• No upside potential.

To find out more about streamlining your portfolio and ditching duds, click here to get the digital issue of NZ Property Investor magazine.

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