First investment property
Mark ashcroft asks:
(updated on Monday, March 07th 2022)
Hi there,1st time investor. I have just got pre approved for$ 840,000 for my 1st investment property. I am using equity in my existing home.
I am looking for my best place/ area/ city to buy a new build .
cash positive? or with a good rental return and market, I'm looking at new builds as I'm aware tax wise il have less to pay at the end of the tax year.
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.
|Heartland Bank - Online||6.99|
|SBS FirstHome Combo||7.05|
|China Construction Bank||7.09|
|Co-operative Bank - First Home Special||7.10|
|Wairarapa Building Society||7.15|
|Co-operative Bank - Owner Occ||7.30|
|BNZ - Classic||7.35|
|China Construction Bank||6.75|
|Heartland Bank - Online||6.85|
|Wairarapa Building Society||6.94|
|BNZ - Classic||7.05|
|AIA - Go Home Loans||7.05|
|Co-operative Bank - Owner Occ||7.05|
|China Construction Bank||6.40|
|AIA - Go Home Loans||6.69|
|BNZ - Classic||6.75|
|SBS Bank Special||6.79|
|Co-operative Bank - Owner Occ||6.85|
|SBS FirstHome Combo||6.19|
|AIA - Back My Build||6.19|
|ANZ Blueprint to Build||7.39|
|Credit Union Auckland||7.70|
|Heartland Bank - Online||7.99|
|Pepper Money Essential||8.29|
|Co-operative Bank - Standard||8.40|
|Co-operative Bank - Owner Occ||8.40|
|Kiwibank - Offset||8.50|