Property ExpLained

In this episode, you’ll learn how fast rents have increased in New Zealand. This way you can decide what to use when forecasting your investment properties.

In New Zealand, over the last 30+ years rents have increased 4.60% annually (on average).

But that's an average. Rental increases fluctuate. Sometimes rents will go up faster or slower than average.

In this episode, you’ll learn the 5 most common ways to measure property investment returns.

Every investor wants a property that gives the “best” return. But there are lots of ways to measure these returns. There is no single “right” way to do it.

Each investment strategy can be successful … depending on how you measure success.

In this episode, you’ll learn 10 ways to help manage your investment property top-up. It can feel pretty painful to be a property investor at the moment.

The average top-up for a property bought today is $350 to $550 a week. That’s if you’re borrowing all the money to invest. That’s a lot.

So many property investors look for ways to free up cashflow. 

In this episode, you’ll learn the 4, long-term assumptions that Opes uses in its Return on Investment spreadsheet.

You’ll also learn our reasons why we use them. You can make any investment property look deceptively good (or bad) by the numbers you use.

There are lots of numbers you could change, but only four assumptions (unknowns) make a massive difference to the outcome.

In this episode, you’ll learn the pros and cons of rental guarantees. Importantly, you’ll also learn the 3 problems with them (that you can’t ignore).

Right now the property market is slow, particularly for New Builds. So, developers are looking to drum up sales without reducing the price.

In this episode, you’ll learn the top 6 uncertainties in property investment. You’ll also get strategies you can use to combat them.

All investments come with some risk. If you’re going to improve your life through investment property you need to get comfortable with some level of uncertainty.

If you avoid all risk, your returns will likely be small.

In this episode, you’ll learn how New Build properties go up in value compared to existing properties.

Investors often worry that New Builds depreciate the same ways new cars do. After all, New Builds aren’t new forever.

In this episode, you’ll learn the 5 property features that really matter to homeowners, but that shouldn’t be a big deal to investors.

To be fair, it’s not that these factors are irrelevant, but they shouldn’t be at the top of your priority list.

It all comes down to using an investor mindset.

In this episode, you’ll learn the instances where a developer can – and sometimes will – increase the price of your new build contract.

Developers can increase the price of most contracts. But some contracts make it easier than others. 

In this episode, you’ll learn what factors suggest a developer might have a bit more risk than others. This is important because developers aren’t regulated.

That means a developer with no experience, and with no finance in place, could set up shop and start selling properties for a 200-unit project.

So the onus is on you to weed out the good from the not-so-good.

In this episode, you’ll learn the 5 main factors that will determine how much income you need to buy an investment property.

Ultimately, it depends on your personal circumstance. Two people can have the same income, but the bank will lend them different amounts of money.

In this episode, you’ll learn the main differences between a residence associate and a body corporate.

Essentially they are the same thing, but they incur different fees and apply to different property types. 

In this episode, you'll learn our top 5 places to invest and the reasons why.

Picking the right city to invest in is just as important (if not more) than picking the right property.

This is why all investors wonder: “Where is the best place to invest in New Zealand right now?”

In this episode, you’ll learn what refinancing is, and when it can be the right option for some people.

Refinancing is a hot topic at the moment. While interest rates are high, everyone’s out hunting for the best deal possible.

In this episode, you’ll learn the 3 strategies you can use to find the right interest rate for you. Interest rates are high.

So, a lot of investors ask: “How long should I fix my mortgage interest rate for?” In an uncertain environment what’s better – the 1, 2, 3 or even the 5-year fixed interest rate?

In this episode, you’ll learn the 8 things that can go wrong in investment.

This isn’t to scare you off (I hope) but rather to make you a more informed property investor. So you can either a) avoid these traps or b) have a game plan ready for when they do.

In this episode, you’ll learn why landlords are generally advised against meth testing.

While many investors think any meth-related activity poses a health risk to tenants,  new research indicates this is not the case.

In this episode, you’ll learn about the Mortgage Buster – a way to pay down your mortgage more quickly. Over time, your equity and servicing improves organically.

But there is a way to speed up the process, to propel you to your next investment sooner. 

In this episode, you’ll learn all about interest-only loans. Property investors often use an interest only when getting a mortgage.

These loans help keep mortgage repayments low and cashflow better.

But not every investor can get an interest only loan. Just because you want one … doesn’t mean the bank will give you one.

In this episode, you’ll learn the top risks that can happen when you choose to invest in New Build properties.

In this episode, you’ll learn what a capital gains tax is. Right now, there isn’t any plans to introduce a formal tax.

But we’ll discuss how it might affect property investors if it comes in. Some Kiwis argue for a capital gains tax, others oppose it.

In this episode, you’ll learn where the most affordable rates are in NZ for property investors. Council rates are your largest operating expense as a property investor.

But rates vary for each council area. Some areas have very high rates; others don’t charge as much. This means how much you spend on local council taxes can vary widely based on where you invest.

In this episode, you’ll learn what sort of yield you should aim for in Auckland.

Spoiler alert, it’s probably lower than you expect.

In this episode, you’ll learn Opes’ top 5 places to invest in the country and the reasons why we’ve picked them.

After all, picking the right city to invest in is just as important (if not more) than picking the right property.

In this episode, you’ll learn what tools are available to help you work out where the flood plains are.

You’ll also learn what risk this poses to your property, and how to reduce flood risk when property hunting.

In this episode, you’ll learn the pros to hiring a property manager versus self managing.

Many property investors initially see a property manager as an additional expense.

While this is true, there are some additional benefits that may make that fee worth it.

In this episode, you’ll learn how 'Buy Now, Pay Later' services like Afterpay and Laybuy can stop you from buying property.

Buy you’ll also learn how to reverse their effects before submitting your mortgage application.

In this episode, you’ll learn what can slow down the process for getting a tenant.

Every new property investor wants to know how long it’ll take to find a tenant. But, of course, how quickly your specific property rents depends on several factors.

In this episode, you’ll learn what to do if your property falls in value during construction.

This scenario doesn’t often play out, but it can happen. No, this doesn’t mean that you’ve made a bad investment decision. But you need to know what could go wrong so you’re not blindsided when the (un)expected happens.

In this episode, you’ll learn the 8 things you must remember to tell your mortgage broker.

It’s not because they’re nosey, but because they need to have a full picture of your financial situation. This means everything you are committed to now, and in the future.

Sure, we’re all human and sometimes people forget, or don’t know what to include. But non-disclosure can be hard to come back from, if the bank thinks you are trying to deceive them.

In this episode, you’ll learn what the Healthy Homes Standards are, and why it can be a $4000 mistake not to comply.

These standards are specific and strict. Even if your property was built yesterday – and meets the building code – it may still fail.

You’ll also learn the most common areas that fail, and how to most cost effectively fix them. 

In this episode, you’ll learn the difference in price and rent between a property with a garage, a carpark, or neither.

This is a really important and common discussion for investors.

Why? Because when you're New Build shopping – the car parking situation is often different.

In this episode, you’ll learn how to fund your retirement using property to generate a passive income.

This is the more desirable of the 2 options available to investors.

That’s because the income you create is infinite – which means you could *technically* live forever.

If you’re planning to buy a New Build property, you’ll find yourself navigating one of two contracts:

• Progressive Payments
• Turnkey

Like everything else, each contract has its own pros and cons. In the end, what’s best for your situation will ultimately decide which one you go for.

In this article we’ll outline the 5 key differences between turnkey and progressive contracts, so you can decide which approach is best for you.

In this episode, you’ll learn how debt-to-income ratios will affect property investors and the property market.

This is important, because The Reserve Bank will likely introduce DTIs within the next 12 months or so.

In this episode, you’ll learn how property investors can use split banking to buy more property. It’s no secret, we’re big fans of split banking – or as we’ve called it in the past “cheating on your bank” or “polybankery”.

It works especially well for investors who put their money in New Builds.

In this episode, you'll learn 7 strategies to manage a higher-than-normal cashflow. Most of the time, investors are comfortable knowing the rental income won’t cover all the costs required to hold onto a property.

But, as interest rates rise, these top ups are increasing. And some will find these higher top-ups a stretch.

In this episode, you’ll learn the 3 ways investors can minimise the amount of tax they pay, in the real world.

Tax minimisation is not about pilfering from the tax man. It's simply about not paying any more tax than you need to.

In this episode, you’ll learn everything you need to know about contracts a.k.a. the sale and purchase agreement.

This is important because signing the contract is often the very first step a potential investor takes when interested in purchasing a new-build property. This happens even before due diligence has begun.

In this episode, you’ll learn 4 ways to get out of your build contract … while it’s still being built.

Maybe your family has welcomed a baby, or maybe you’ve been made redundant. Or maybe, you’ve changed your mind about the property’s place in your portfolio.

Either way, sometimes life happens and you need to sell your property. Here's how you do it. 

In this episode, you’ll learn how cross leases used to be a quick-and-easy shortcut to subdividing a property.

Nowadays, they are – somewhat ironically – notorious for issues, require a lot of paperwork, and can devalue your property.

In this episode, you’ll learn how much deposit you need to buy an investment property.

Particularly, you’ll learn LVRs change deposit amounts, depending on what sort of property you are buying. You’ll also learn how you can use your own home to source your deposit.

Essentially, this means you can invest in property without needing any cash upfront.

In this episode, you’ll learn how to conduct a thorough pre-settlement inspection (if you choose to go it alone).

You’ll learn, there’s a lot more to it than just rocking up to your property, checking it’s built, and calling it a day. And you might have to bring a hairdryer.

In this episode, you’ll learn whether the number of bedrooms in a property can impact capital gain.

This is by looking at CoreLogic data from the last 20 years, in 4 of our bigger cities.

In this episode, you’ll learn what a chattel is and the reasons why you should get a chattel valuation.

Sometimes, investors see these valuations as “just another cost”. But you’ll also learn how a chattel valuation can save you up to $15,000 in tax over the next 15 years.

In this episode, you’ll learn what a property manager does and how much their services will cost you.

Dealing with tenants is a full-time job, a job most investors don’t have the spare time for.

However, hiring a property manager does come at a cost. So, it’s important to know what you’re paying for.

In this episode, you’ll learn exactly what is included in a Master Build guarantee and how it might not be the be-all, end-all “insurance policy” you might think it is.

You’ll also learn some alternative covers.

In this episode, you’ll learn the pros and cons for several different investment options.

You’ll also learn which one earns the highest return based on the top-up you would usually put into your investment property.

In this episode, you’ll learn how to answer the question: “Can I afford an investment property?”

This is achieved by exploring 3 factors: deposit, income and cashflow. You’ll also learn what you can do if you aren’t quite ready to invest – just yet.