The hardest step for all new residential property investors is the first one. We're here to help you make smart investments and grow your wealth.
Selecting an investment strategy is all well and good but how do you start? In addition to the information on this website, we encourage you to come and speak with one of our investment specialists before you start out. You’ll work out what type of relationship works best for you between yield and capital gain based on your own financial situation and propensity for risk. We also expect you’ll have your own due diligence criteria for LIM’s and specialist inspections.
Below is a list of criteria that we think represents the some of the most important aspects when selecting a residential investment in Hamilton.
This is an obvious and much touted attribute of real estate investment. Firstly consider who will be renting the property. For example, a property in the Hillcrest area will likely appeal to students, lecturers or even people wanting to get into the Hillcrest High School zone. Does the property you are considering appeal to this group? Consider also the property’s proximity to the attraction and it’s proximity to other amenities the tenant may find desirable. For example, in addition to being close to the University, students may find being close to shopping and public transport desirable.
Capital gains can come as a function of a growing market or because a market perceives a property or location is moving better than the market. This is particularly true where a property has a unique attribute that is growing in demand but can’t be expanded. Properties with lake or river views, or a property in popular school zoning are good examples of this trait.
Our experience tells us that properties with desirable configuration are popular with tenants. Improving tenant-ability improves occupancy and therefore increases returns over the long term. We suggest selecting a property with mass market appeal including considering the indoor / outdoor connection.
SECTION & BUILDING PRESENTATION
Often the easiest improvements are the cosmetic ones and they often lead to terrific improvements in value and rent. When buying, consider ways that you might improve the presentation. Download for free our 10 most valuable makeovers to get a sense of what can be achieved. Alternatively, buying a home which is immaculately presented can save downtime at the beginning of a tenancy and get income flowing immediately.
An often overlooked consideration which buyers are beginning to appreciate the value of. The sanctuary of a person’s own space is as important to most tenants as it is to the majority of buyers.
ON-SITE PARKING & GARAGING
Most often this is becoming more important to tenants. If it is expected that a number of people will live at the property, consider where off road parking will be created. Plan for this as if it is left to tenants it can be detrimental to the long term maintenance of the property.