Residential Property Management

5 Mistakes to Avoid When Buying A Wellington Investment Property

Buying an investment property in Wellington is a great way of generating regular income and accumulating wealth. However, beginners in the real estate investment market can make costly mistakes if they are not careful. Here are some common mistakes to avoid when buying an investment property in Wellington, NZ.

1.Over speculation

Wellington rental property management experts see this problem all too often. Many beginners rush into the real estate market wanting to make a quick buck overnight. There is a lot of money to be made by investing in Wellington rental property. However, it takes patience and persistence to build wealth through real estate investment.

The best rental manager in Wellington place a huge emphasis on buying property whose value can appreciate with time while attracting optimal rents. Buy below market value and plan for consistent gains over time, rather than an overnight killing.

2.Neglecting expert financial advice

Financing a real estate investment is a complex matter which requires professional advice. There are many things to take into account including property taxes, mortgage rates, etc. You can save a lot of time and money by letting experts set up the financing for you. The majority of property managers in Wellington suggest that their investors get financial advice to avoid choosing the wrong financial structure that can obliterate any gains or even leave you in debt. 

3.Buying unsuitable property

Many beginners buy the wrong property, especially when they neglect to do their due diligence. This can be avoided by being very thorough during the entire process. Firstly, have the home inspected to ensure there are no defects or pest infestations. Secondly, buy in the right location and target the right demographics. For example, buying a one bedroom home in an area that attracts families is a bad mistake. Understand the market and target your tenants accordingly, so as to reap maximum returns from your Wellington rental property investment.

4.Not doing your homework

It takes a lot of research to understand market trends and investment choices. Before buying any property, check out the neighbourhood, available amenities, crime rates, foreclosure rates, and average rents. Would-be renters are interested in these factors when deciding where to live. Doing the same will guide you to the ideal Wellington rental property that will have high occupancy rates and good rental income.

5.Being emotional rather than analytical

Buying an investment property is very different from buying a home you plan to spend your life in. The rental property must be selected from a renter’s perspective. It must be suitable for the target market and not your own needs. Many beginners buy property they fall in love with, instead of analysing its investment potential and ability to generate rental income. Keep a level head and avoid making emotional decisions that will ruin your investment decisions.

If you are a beginner in the property investment market, speak to an experienced Wellington property management firm. Manage My Rental NZ are expert rental managers in Wellington, who can help you maximise your investment returns while minimising your tenancy risks. Speak to us today and let our skilled Wellington property management experts save you time and money. Visit www.managemyrental.co.nz to get started on your investment property journey!

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