First investment property

Our Experts Answer:

There are many factors to take into consideration when looking at where and what you should purchase.

We have noted many new investors heading towards new builds recently as they are generally purchasing properties which are compliant already plus the tax benefits you have already mentioned. Smaller regions often have better cashflow, however you may not experience the same gains over time that you do in the larger cities. Often on paper lower socio-economic areas may achieve greater returns as well but you may experience higher vacancy levels and costs which can adversely affect your actual net return.

I have noted recently a number of investors who are keeping an eye on the Christchurch market and there are numerous comments about it being undervalued at present. If you decide to go down this route make sure you do decent due diligence on this though.