1. Is property investing right for you?
We have seen some huge price increases over the years, and this may or may not continue in years to come. But don't bet everything on this happening. Don’t get into property investing by chasing quick riches or because it’s trendy. You need to accept that property is a long-term investment with its ups and downs.
2. Save money
To be an investor you need money. Learn to save rather than spend. Make short-term sacrifices to save enough for your first deposit. Make sure you put money aside on regular, discipline basis. To bump up your savings, you may want to consider staying at home longer with parents, getting a second job on weekends or just cook your own food rather going out.
3. Educate yourself
There has never been an easier time to educate yourself. It is essential to be familiar with the market. These are current conditions, investment options available, the process of getting started and all the associated costs.
Some concepts might be unfamiliar if you’re just starting out as an investor. So, subscribe to blogs, online forums, read books, visit the Tenancy Services website. Visit Trade Me Property, realestate.co.nz, OneRoof and Homes.co.nz to learn about property prices. Read opinion pieces in Property Investor Magazine and reputable newspapers. Look up unknown terms. Talk to people.
Reach out to someone who has created the success you want. Someone you know like your parent, relative, friend, co-worker or boss; or even someone you've never met. Find them on LinkedIn or by Googling their name and ask them for advice, offer to pay for their dinner and hear their story. You’d be surprised how many people say yes and how much you can learn.
4. Have a contingency plan
Make sure you don’t overstretch yourself. Have enough money put aside to cover your current needs. You also need to have enough to address any unplanned maintenance issues, unexpected vacancies or unpaid rents. Have enough put aside to make you feel comfortable.
5. Seek advice and ask for help
You don’t have to know everything. Put together a team of a good mortgage broker, an amazing accountant and a trustworthy lawyer. These people will represent your interest and have your back when you need them most. They will help you separate a true bargain from a dangerous trap.
6. Join your local Property Investor Association
The best way to learn is by meeting like-minded people, especially when you’re still learning the ropes. All property investor associations host regular meet-ups. You will learn heaps and leave these meetings full of new ideas.
7. After you buy, keep saving
You can use extra cash to buy your own home, invest in another property or diversify and invest in something altogether different like shares or a new start-up. Keep developing your saving habits, so you have more options available to you in future.
8. Don’t be afraid to get your hands dirty
If something needs fixing in the property you purchased, get in and do it. You don’t need experience for tasks like painting or ripping old cupboards. You can learn things along the way and save some money doing tasks yourself. Leave dangerous tasks for professionals to take care of. Call in tradies for jobs that are beyond you, such as electrical and plumbing.
As young professionals, time is on your side, so don’t panic. At the end of the day, there will need to be some sacrifices made in the short term but always remember your long-term goals.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not, and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.