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.

Kainga Ora - First Home Buyer Special 2.25
Heartland Bank - Online 3.85
The Co-operative Bank - First Home Special 4.19
SBS Bank Special 4.19
ICBC 4.29
The Co-operative Bank - Owner Occ 4.29
Select Home Loans 4.29
TSB Special 4.34
HSBC Premier 4.39
China Construction Bank Special 4.45
AIA 4.49
Heartland Bank - Online 4.70
SBS Bank Special 4.85
Select Home Loans 4.86
TSB Special 4.99
ICBC 5.09
HSBC Premier 5.15
The Co-operative Bank - Owner Occ 5.19
Kiwibank Special 5.19
Westpac Special 5.19
China Construction Bank Special 5.19
First Credit Union Special 5.20
Select Home Loans 5.20
TSB Special 5.75
Kiwibank Special 5.79
Westpac Special 5.89
ICBC 5.89
HSBC Premier 5.89
The Co-operative Bank - Owner Occ 5.95
SBS Bank Special 5.95
BNZ - Classic 5.99
Resimac 6.33
China Construction Bank Special 6.35
ANZ Blueprint to Build 2.78
Pepper Essential 3.44
Heartland Bank - Online 4.00
Select Home Loans 4.09
Resimac 4.59
TSB Special 4.79
Liberty 4.84
Kiwibank Special 5.00
Kiwibank - Offset 5.00
Kiwibank 5.00
Wairarapa Building Society 5.24