For the simplest way to become a property investor in New Zealand
Opes Partners have launched a free online Property Academy which will help you murder your mortgage and close your retirement gap through property investment.
Why have they done this?
A recent study by the FMA showed that only 1 in 10 New Zealanders over the age of 50 feel confident they will have enough money to live on in retirement. Combined with an aging population and a huge reliance on the government Superannuation, most of us are facing a big shortfall when it comes to our retirement income, and we all need to take more responsibility for bridging our own retirement gap.
Many New Zealanders view property investment as one of the best ways to get ahead when it comes to retirement planning. Property markets in New Zealand have typically shown moderate long-term growth, meaning your property should increase in value over time. Rental prices typically show an upward trend across the country too. Research by Corelogic shows that 'since the start of 2018, rents have been outpacing property values, and in the year to February 2019, the rise in national rents (5.6%) wasn't far off double the increase in values (3.0%).' In some regions of New Zealand, rental yields were as high as 9%.
How will this help me?
The purpose of this programme is to give you the knowledge, confidence, and impetus to start investing in property, within the next 6 weeks! The course consists of 60 minutes of online video content split across 15 sessions, 5 tests, 3 calculators so you can run your own numbers, and 2 quizzes so you can find out what kind of investor you are, and create a bespoke investing strategy. The course should take as little as 90-120 minutes to complete - giving you time to go through the calculators and quizzes at your own pace.
By the end of the course you will have the knowledge of how to build wealth through property, and understand why it is no longer a 'nice to have', but a 'need to do'. You will learn about the concepts of equity and leverage, and how leverage in property is different to in any other investment class. The course will also give you the skills to identify what to look for in an investment property.
Are there any risks involved?
Property Investment is one of the most popular types of investment in New Zealand, but, as with most investments, it is not without it's risks. As a property investor you are also exposed to these risks for a longer time, so it is important to make sure you have considered what could go wrong as well as the wealth of benefits. You may have to borrow a large sum of money to buy a rental, and this may be on top of what you have already borrowed against your own home. Your rental property may not always have a tenant but mortgage repayments will still need to be made, even if you aren't receiving a rental income. There is a risk that the value of your property may be less than when you first purchased it - capital losses are magnified when leverage is involved, and 2019 saw the introduction of a tax ring-fencing on rental property losses.
Whilst Opes Partners have a wealth of skill and experience in Property investing, it is important to remember that this course contains general advice, and before committing to a course of action you should always talk to a professional first. Cave Financial are delighted to have partnered with Opes on this project. We can offer you sound financial advice on whether this is the best course of action for you, and what you need to consider before, during, and after the property investment process. What's more, as an accredited mortgage broker's we have access to the entire market of lenders, meaning that we can help find the mortgage that's right for you.
You can find out more about Property Academy in our guest blog by Opes Managing Partner Andrew Nicol, or please feel free to contact us for a no obligation chat. When you're ready to start building wealth through property investing, you can sign up here.
Need some help?
Drop us a line using the form below and we'll be in touch to talk through your insurance or financial needs.