Property investors love Christchurch. There are so many opportunities for those interested in breaking into the rental market to get started in the Garden City and, unlike some of the smaller, rural areas of New Zealand, plenty of room for growth for years to come. It does require some capital, but you’re not looking at the same kind of risk that you would by investing in Auckland or Wellington.
If property investment is something you’re interested in or you’re just starting your journey and preparing to enter the rental market, it’s a good idea to do your research. Here are a few tips that we’ve put together at McPhereson Property Management to help guide you in the right direction.
Research Your Area
Get to know the market that you’re looking to invest in. Living somewhere is great, but you need to do a bit more if you’re planning to make a serious financial commitment through property investment. Talk to a real estate agent or manager about current trends in the market and discuss the kind of opportunities that are available. You aren’t going to be an expert straight away – expect that you’ll need a bit of guidance and hand holding until you’re familiar with your local market. It also pays to look back over past trends for any patterns in how your local market’s prices ebb and flow.
Talk to the Right People
A good mortgage broker, experienced lawyer, valuer, property manager and an accountant with experience in rental property investments are all people that you want to be talking to before you start investing. An experienced team can give you the advice and direction that you need to be successful and advise you on everything from setting up trusts to saving money on taxes.
Always Allow for Unexpected Costs
Talk to you bank manager about financing so you have a clear idea of what you can spend before you start looking for properties. It’s important to remember to NEVER over commit. Always leave enough money for those unexpected costs that always seem to crop up – having a safety net can make all the difference.
Be the Best Landlord You Can Be
We’ve all heard nightmare stories about ‘landlords from hell’. People who run their rental properties poorly end up paying for it later. Don’t become the landlord that we all hate; work hard to build good relationships with your tenants and you’ll be able to minimise vacancies and maintain a stable and steady income. If it starts to be too much work as you build your portfolio, look to a property management company like McPherson Property Management to maintain your properties and keep your tenants happy.
If you need any more information or help with property management from a professional team, contact us at McPherson Property Management. We’re a Christchurch company with plenty of experience in the local market.