Why buy investment property?

Purchasing a residential property as an investment can be an excellent way to increase wealth over the medium to long term, and provide a passive income in retirement.

A successful investment strategy will encompass:

• Sound buying decisions
• Good taxation planning
• Good property management
• Good mortgage management
  

Your investment property should be arranged in such a way that the tenant and the Inland Revenue Department pay all your expenses and help repay the mortgage.

You must also consider how your property will be managed and what is involved in presenting it to potential tenants. You can manage the property yourself or you can contact Quinovic Property Management, who we believe are experts in property management.
Phone 04-384-2333 or www.quinovic.co.nz

New Zealand is a good place to buy an investment property for the following reasons:

• No capital gains tax
• No stamp duty
• No limit on losses claimable
• Favourable depreciation rates
• Stable interest rates
• Strong demand for rental accommodation
• Potential for significant capital gain
  

You must recognise however that owning investment property is a business and you should consider all the impacts it will have. There are legal and taxation issues involved in owning a property from which you earn income, which you must consider before you buy.