Marks Investing Blog

Do You Need To Consider Who Owns Your Properties?

Property investment is a business and must be treated like one. Whether residential or commercial, a new property investor is now ‘in business.’ Not everyone is able to do this, because it’s not in their nature to cope well with such things. Dealing with tenants requires many personal attributes such as communication skills, patience, a working knowledge of the law, sometimes a very firm style of personal approach, and so on.

Pre-Purchase Property Inspection Check-list

Many people purchase investment property simply because it goes up in value. Consider which is important: capital growth, cashflow or a combination of the both? What type of property do you want to buy?

Advice – Where Does One Get It? And How Good Will It Be? Property Investment education is gleaned from many sources. The Property Talk Forum

Bummer – you might not be able to die due to the cost.

Cashflow is income derived from a business usually on an ongoing basis. In terms of property investment cashflow is usually derived primarily from rent although alternative sources of cashflow may be available.

Trusts have become very popular in New Zealand with many thousands having been established in recent years. There is good reason for their popularity, as they are one of the best ways to provide protection to yourself and your loved ones from future adverse events impacting on your hard earned wealth.

Could you survive without your next wage/salary payment? If you’re not sure of the answer, you need to assess your budget now. Not being able to survive a missed wage/salary payment is just one warning sign you may be heading for financial trouble.

Would you buy a large asset item like a car without test driving it or getting it assessed by an expert in that field e.g. AA vehicle testing? Would you buy a computer without checking out its specifications? If necessary would you talk to an IT guru to ensure the product will meet your needs?

It is a very tempting to want to do the renovation work yourself but if you are running your Property Investment NZ business to maximize your profits you need to carefully assess whether your time is best spent renovating or best spent finding and investing in property.

Leverage is borrowing to purchase an asset so that while you have control of the asset you have not as of yet paid the full purchase price of that asset. Leverage is commonly used in property investment. The net effect of leveraging is to multiply the possible return, and also multiply the risk run by the investor.

Are you tired of the problems associated with residential investment properties, such as tenants trashing your property, not paying rent and the ongoing cost of maintenance. Then commercial property may be of interest to you. However investing in commercial property is very different to investing in residential.