The New Zealand Property Guide
Aim: To broaden your knowledge on New Zealand property investment in order to help clients become better property investors.
Outcome: Completion of this module will enable financial advisers to:
- Explain the property cycle and what the market influences are
- Help clients understand and set realistic goals relating to property investment
- Describe the benefits of property investment
- Develop knowledge around property investment strategies
- State the basics of property tax
- Identify how to make the most out of investment properties
- State the risks with property investment and how to minimise them
Abstract: Property investment has proven to be a very popular investment vehicle for many Kiwis and is one of the largest industries in New Zealand. Property investment, and how it can provide extra income and support to New Zealanders is discussed. Leverage, equity and cash-flow are all important factors to successful investing, as is the expected capital growth rate of a chosen property. The property cycle determines the best time to buy based on factors such as interest rates and the economy’s performance. Ultimately what makes a successful property investor is a belief and drive to succeed as well as an ability to set SMART goals and stick to an action plan for achieving them. The guide is in seven sections. The first six are a bit like a practical A to Z of residential property investment. The seventh involves case studies of 10 very different property investors and stories of what they have done, what worked and what didn’t work for them.