Considering an Investment Property?
December 18, 2023 at 9:33 AM
There are banks and lenders that have home loan products if you are wanting to purchase an investment property. The benefit in using Mortgage Field is we have access to these institutions where we can find the best solution for you with ONE application.
This is very important - Get professional advice from specialists!
Listening to friends and family can be a good sounding board however this is based purely off their personal experiences or what they have heard from friends or family. Your personal financial situation and needs are not the same, so you need to seek professional advice that directly meets your individual needs!
Speak to a registered financial advisor (mortgage broker) or your bank. We offer financial advice on home loans and as such we are regulated by FMA, Banks and the Aggregate we belong to. We are registered with the Financial Service Providers Register Financial Service Providers Register (companiesoffice.govt.nz) As we specialise in Home Loans we can find the best home loan options for you.
Speak to an Accountant. You need to be aware of what are todays tax implications/ benefits for buying an investment property and what could happen in the future depending what your intentions are. e.g are you buying this as a long term rental or are you going to sell this property in the short term. Last but not least, ask about the returns you would likely receive? As this is an investment, you want to get returns that meet your needs just like any investment product.
Speak to a Lawyer. If you want advice on your legal obligations for buying an investment property. You also need to consider whether you want to place this investment property in a company, personal names or in a trust. If you are placing this property in a trust or company, most banks/ lenders would want you to sign a personal guarantee to the entity you want as the owner of the investment property.
Speak to real estate agents. You can do this when visiting open homes, where you can seek advice on rental returns in the area your looking at purchasing. Questions you could ask. Is there demand for tenants in this area and if so why? Is it because of schools and is the proiperty suitable for a family? Does the propety meet the Healthy Homes Standards? Here is a good article on Citizens Advice Bureau: What are the Healthy Homes Standards? | Citizens Advice Bureau (cab.org.nz)