Investing in a new Universal home
Property investment is one of the most popular ways of investing in New Zealand, and quite often it is one of the biggest investments people will ever make.
For those new to investing in property it can be a little daunting, and that’s why Universal Homes have an Investment Specialist who can offer expert tips and insights into property investment.
Universal Homes offer different types of homes across multiple locations throughout the greater Auckland region, that are built to meet current guidelines for Healthy Homes. Making them a great option for property investors.
How do I Invest in Property?
There are many questions you might have when starting on your property investment journey. From
• How much does it cost?
• Do I need a 30% deposit?
• How do I work out if I can afford it?
Through to
• What type of property do I buy?
• How do I find tenants?
• And many more
The answers to all these questions differ depending on your current circumstances and if you have equity in your current family home. If you have equity in your current home it’s often cheaper than you think to get into the investment property market.
Give our Investment Specialist – Srecko Ulrich a call and we can help answer any questions you might have and get you started on your journey.
Choosing an investment property
Where to start?
The first question is what would you like your investment property to do? Is it going to be a rental with tenants, be used as short term accommodation e.g. Airbnb, or be a fix-up ’n’ flip.
Once you know this, then you can start looking at properties.
New homes from Universal Homes are ideal for rental investment properties. They are designed and built to meet NZ Healthy Homes standards and are available in various locations across Auckland. Being turnkey homes they’re all ready for you to put the finishing touches on and have tenants move in.
How do you work out how much an investment property costs?
Assumptions:
Interest @ 2.8% fixed for 2 years
Property Management $2,500
Rates $2,500
Insurance $1,500
Accountant $1,000
Rent x 50 Weeks
Example Property at (enter price and location here) NOTE: Still to be calculated when we push the page live)
Interest on loan @ 2.8% $ 24,892
Property Management $ 2,500
Rates $ 2,500
Insurance $ 1,500
Accountant $ 1,000
Sub Total $ 32,392
Weekly Rent $675 $ 33,750
Weekly holding cost $ pos 26
5 things to consider when buying a rental investment property
There are many things to consider when buying an investment property. These are 5 things we see with customers that we think you need to consider, however don’t hesitate to contact us if you have any questions!
1. Your Financial Goals
If the property aligns with your goals and view of financial success, it’s a contender for purchase. Everyone’s view of financial success is different, but you’re on the right track when your investment brings you closer tot that goals as a step along the path. This can impact the type of investment you wish to make in property e.g. rental, short term rental or fix-up and flip.
2. Property Location
The location of your rental property is the number one factor for a good investment. The same property in Auckland, Wellington or Queenstown will have different values based on location. If there are two identical properties except one is at the base of a mountain and one is beside an airport runway, then you’re going to get two different sets of value including purchase price, type of tenant and rental return.
When considering location you might want to look at average rents, vacancy rates, demographics to give you an idea of the return you’ll get.
3. Property Condition
A new home is always going to be in better condition than an older home. With older homes, there could have been any number of changes to the original designs, which means different parts of the home will need maintenance at different times. With new homes from Universal Homes you always know that we make the homes using the latest building methods and technology, even better you’ll get the peace of mind that no one has made any unauthorised changes to the property, a Master Build Guarantee and a home designed to meet NZ Healthy Homes standards for rental properties.
4. Financing
To finance your home, we strongly recommend getting professional advice about which option is best for your situation. The financing you may have available is dependent on deposits, LVRs and how much equity you have in your own home. With equity in your own home, there are ways to purchase without needing cash, however it’s best to first talk to a mortgage broker or accountant to get specific advice on your situation. This may seem overwhelming at first, but with the right advice can be a simple process.
5. Emotions
It’s very easy to get caught up in the emotions when buying a home and looking at what you’d like in a home. But it’s important to remember that this is an investment, and you need to make the decisions based on how the potential property helps achieve your goals
Why not talk with us today, and we’ll help you take that next step in looking at buying an investment property.
FAQs
How much of a deposit do I need?
How much deposit you need will depend on how much equity you have in your family home. Give us a call to chat through ways you can leverage equity to get into the rental investment property market.
Where do Universal Homes have houses?
Universal Homes have houses across Auckland
Are the houses already built?
Universal Homes offers a range of houses from those under construction, to those already completed.
Are they ready for tenants to move in?
All Universal Homes are built to meet the Healthy Homes Standards required for rental properties, and are turnkey homes.
How / Where do I find tenants?
There are multiple ways you can find tenants, you can advertise yourself on sites such as Trade Me and manage the property directly, or you can go through a property manager who will find tenants and manage everything for you for a percentage of the rent.
What regulations are there for rental properties in New Zealand?
You can find out more about the rules and regulations for rental properties through the tenancy tribunal here - https://www.tenancy.govt.nz/starting-a-tenancy/new-to-tenancy/
What is Healthy Homes?
Find out here https://www.tenancy.govt.nz/healthy-homes/ about healthy homes standards and requirements for rental homes in New Zealand. Rest assured all Universal Homes are built to meet the standards, so there won’t be any work to do before tenants move in!