When looking to purchase a new build investment property it really is “all about the numbers” At a higher level it’s important to understand The Property Cycle; the real estate market is cyclical in nature. Having an understanding of how you can harness the concept of Leverage is the key to unlocking your potential. Its also key that you learn the relationship between the Yield of your property and its likelihood of strong Capital Growth.
When looking to grow your wealth via investing in a new build property you want to purchase a property where there is a good likelihood for capital growth. That is where demand outstrips supply of housing, and where people want to live, rent and work. We have some great stats and insights on a number of regions around New Zealand including Northland, Auckland, Waikato, Bay of Plenty, Gisborne, Wellington, Canterbury and Southland.
Implementing a good, long-term buy and hold strategy using new build investment properties is not as complicated as some experts make it out to be! But there is a lot of ‘jargon’ that can become confusing if some of the basics are not understood. It’s important to know your GV’s from your RV’s, what’s the diff between Cross Lease or Freehold Title? Or what is Principal and Interest and Interest Only?