Why You Should Consider Property Investing
You may have heard the advice to diversify your investments across different investment types including property. This advice is very important and one of the areas you should seriously consider is putting some of your investments into property.
There are different laws governing a house, used to live in, compared to an investment property. The former does not allow you to claim any expenses against your taxable income. This law is true in New Zealand as well as other western countries.
Buying a property to rent out for investment purposes gives you many advantages.
The first one to consider is the ability to earn an income. In this market, it is very hard to get a property which makes enough return from the rent, to pay all your expenses. That said, it is not impossible and it depends on several factors.
The first factor to consider is how low you can buy the property for and in this market where sellers are just as informed as buyers, it is sometimes hard to buy a property at a cheap price.
A cheap price, is a price that is way lower than the recent valuation of that property. For example, if you can buy a property for at least 20% below its value then that's a good buy.
If you find it hard to secure an investment property by yourself, find a good broker who can negotiate on your behalf. He or she will charge you for their services but is money worth paying for, if you cannot do it yourself.
Another reason for going into the property market is the increase in value your house will have after 10,20 or even 30 years, due to the laws of inflation. Based on past performance and the low risk of property investments, this will bound to happen. How much more your property will increase compared to the amount you paid for it, depends on many factors like location, demand, and of course the economic conditions.
If you want to know more about buying an investment property, please go to our website Buying Investment Property [http://buyinginvestmentproperty.co.nz/property-investment-advice] for more information.
There are different laws governing a house, used to live in, compared to an investment property. The former does not allow you to claim any expenses against your taxable income. This law is true in New Zealand as well as other western countries.
Buying a property to rent out for investment purposes gives you many advantages.
The first one to consider is the ability to earn an income. In this market, it is very hard to get a property which makes enough return from the rent, to pay all your expenses. That said, it is not impossible and it depends on several factors.
The first factor to consider is how low you can buy the property for and in this market where sellers are just as informed as buyers, it is sometimes hard to buy a property at a cheap price.
A cheap price, is a price that is way lower than the recent valuation of that property. For example, if you can buy a property for at least 20% below its value then that's a good buy.
If you find it hard to secure an investment property by yourself, find a good broker who can negotiate on your behalf. He or she will charge you for their services but is money worth paying for, if you cannot do it yourself.
Another reason for going into the property market is the increase in value your house will have after 10,20 or even 30 years, due to the laws of inflation. Based on past performance and the low risk of property investments, this will bound to happen. How much more your property will increase compared to the amount you paid for it, depends on many factors like location, demand, and of course the economic conditions.
If you want to know more about buying an investment property, please go to our website Buying Investment Property [http://buyinginvestmentproperty.co.nz/property-investment-advice] for more information.
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