Five Things to Check Before Purchasing a Rental Property

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Property can be a great investment if you have the right knowledge about the potential risks and difficulties that can occur. If you don’t know what to expect, property investment can be a daunting and expensive experience. Before you find a property to buy in Wellington – have a chat with an experienced property manager.

Property managers can advise you on the ins and outs of investing in property so you are fully aware of the commitment, finance required and time needed to manage a rental property properly. Here are 5 basic pointers to consider before starting your search for an investment property:

1. Location
The amount of rent you receive and the quality of tenants you attract depends largely on the type of neighbourhood you are buying your rental property in. Consider places like Porirua or Lower Hutt. The demographic in these areas are comprised of families which would yield a longer term commitment than say a rental apartment in Wellington city which would attract students.

2. Cost
Property taxes differ throughout New Zealand so make sure you are fully aware of the amount of property tax that you will be paying on your investment. When setting the rental amount for your property, ensure the mortgage payments are covered. Depending which area in Wellington you are buying in, you may also have the potential for extra income above your expenses.

3. Safety and security
Make sure the neighbourhood is safe as it will be difficult to find tenants for a property in an area associated with crime. Carry out your research based on publicly found records rather than asking the owner who wants to sell their property to you. They may give you biased and possibly inaccurate information.

4. Local amenities
Properties that are located in areas which are close to schools, parks and public transport are generally more expensive to buy. However you can expect a good rental return compared to a property that isn’t near any amenities.

5. Possible developments
Check if there are any planned developments in the area you want to buy your rental property in – including council and private builds. These developments could affect your investment in a positive or negative way depending on what and where it is.

When you are looking for investment properties in the greater Wellington area, including Lower Hutt and Porirua, it is wise to enlist the services of a Wellington based property management company. Working with a local property manager is always a good idea because you can leverage their local Wellington knowledge and connections.

Wellington-based Manage My Rental is a trusted company which provides property management services throughout the greater Wellington region. The expert property managers can help you find an investment property within your budget. Visit www.managemyrental.co.nz to discuss your property investment options today.

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