Apply online now »


How do I get started?


The main elements of property investment revolve around capital gains on property, the yield you can obtain from the property and the taxation benefits of property investment, but where to start?

The deposit for your investment is as good a place as any, many first time investors don’t understand that you do not have to have paid your house off before you invest.  Many people have good equity in their own home while still having a mortgage.  You do not need to save a deposit, you can raise 100% plus costs from the equity in your home.
One of the major benefits of property investment is that the capital gains made on the property can be tax free as long as you are focused on a medium to long term investment. You only have to look as far as Australia to find that this is not the case in many countries.  This means that whatever profit you sell your investment property for, it is yours to keep (or invest).
Yield is the income you make from the property.  To work out the exact yield follow this calculation; Yield is income from the property less expenses (excluding interest) divided by the property’s value multiplied by 100.  In an ideal world, if your yield covers the interest rate you have a very sound investment (however, often economic conditions do not allow for this to be possible).

There are less taxation benefits associated with property investments as there use to be, so you need to discuss the benefits with a tax accountant.  We can refer you one if needed. 
Also be very careful that your investment actions are not deemed to be property trading, as property trading is taxable.  Property trading is generally defined as short term development or buying, improving and selling property short term, as opposed to property investment which is exempt from capital gains tax. If not sold short term for a profit.
As mentioned before we believe that treating your property investment as a business is a critical success factor and with any successful business you need to set goals to aim for.  Understand what you want to achieve and then set yourself a goal to achieve it.

Keep up with the mortgage goss

Read the latest news or Subscribe to our newsletter
bnz resimac westpac anz liberty basecorp dbr asb pepper bluestone 1co-op