Whether you’re looking to purchase your first rental property, or you’ve been an investor for years, our professional mortgage advisors can help you find the right investment property loans to meet your financial goals.
Investment property refers to any real estate property purchased with the intention of earning a return on the investment through rental income, making a capital gain when selling the property in the future, or both. Investment properties are not purchased to be used as a primary residence, and lenders use a different set of criteria when assessing loan eligibility when compared to owner-occupied properties.
Returns from investment property come in two forms. First in the rent paid by tenants living or working in the property. It is worth considering that initially rental income from a property may yield little or even no profit once expenses like mortgages, property maintenance, insurance and council rates are factored in.
The second form of return from an investment property comes from any increase in the value of the property over time. This is referred to as a capital gain, and is realised when the property is sold for a profit. Investors should be aware that if you sell a New Zealand residential investment property you have owned for less than 10 years, you may be required to pay income tax on any capital gain from the sale.
Property is one of the most common forms of investment in New Zealand and can be a great way of generating long-term wealth. With the number of people renting in New Zealand increasing each year, the need for privately owned rental properties is forecasted to keep is expanding in the years to come.
There’s a lot to understand about selecting loans for investment properties, and it is often more difficult to borrow money for a rental property than for an owner-occupied home due to differing loan to value ratio rules. When applying for any home loan, lenders will also want to be certain that you can repay what you’re borrowing for investment property.
With our decades of experience and long-standing relationships with lenders across New Zealand, our advisors will help you find the right investment loan to start you on your property investment journey, so get in touch with one of our professional advisors today.
Does your business need a new office, factory, shop front or other asset? We can help you access the lending you need at a rate that’ll keep you growing.
If you’ve had a taste of investment property success and are keen for more, it’s time to consider what loans could help you acquire those next properties. Whether you’re wanting to buy additional property as a long-term investment, or only want to hold onto a rental for a short while, our advisors can help you understand and navigate the process of financing multiple properties. If you’d like to know more about how you could start expanding your investment property portfolio, you can contact one of our expert advisors here.
At Personalised Mortgages, our mortgage advisors have at least 10 years’ experience in the financial sector and have a wealth of knowledge of New Zealand’s investment property market. Our advisors will take the time to understand your property investment and financial goals to provide honest, down-to-earth advice on how you can start or grow your investment property portfolio. To arrange a free, no-obligation meeting to discuss your investment goals, get in touch with one of our friendly and professional advisors today.
Our professional advisors have established relationships with over 20 of New Zealand’s leading home loan lenders. These relationships allow us the flexibility to choose from a wide range of home loan options for investment properties that combine competitive rates and terms that best suit your property investment goals.
New Zealand has a growing need for private rental properties due to an increase in renters and has seen strong property value growth throughout most of the country over the previous decade. This means that investors consider New Zealand a good country to invest in property.
To start investing in property, firstly you will need either a cash deposit or will need to own an existing property with sufficient equity. Due to the complexities of property investment, it is always worth talking to a trusted advisor before making any major decisions.
If you want to buy an investment property in New Zealand, you'll typically require at least a 40% deposit. This can vary and in some circumstances, you may be able to utilise a smaller deposit, while in others, a larger deposit may be required.