Property investment has long been a popular pathway to building wealth in New Zealand. With the potential for long-term stability, rental income and capital gains, it’s an attractive option for those looking to grow their financial portfolio. However, diving into property investment requires careful planning and a solid understanding of the basics. This guide will help beginners navigate the journey toward securing lending and financing for an investment property.
Property can offer several compelling benefits:
However, it’s important to understand the risks. Market fluctuations, rising interest rates, and ongoing maintenance costs all require consideration and careful financial planning.
New Zealand’s property market is dynamic, with regional trends and differences that can influence borrowing decisions. Cities like Auckland, Wellington and Christchurch often present high rental demand and strong growth potential. When evaluating a location, consider factors such as population growth, transport links, and local amenities.
Understanding basic investment terms can help inform lending conversations:
There are various types of property, each with different implications for your lending strategy:
As mortgage advisers, our role is to help you understand and structure the lending side of your investment strategy.
Saving for a Deposit: Most lenders require a deposit of 35% or more for investment properties. Some non-bank lenders or second-tier lenders may offer more flexibility, but usually at higher interest rates and with stricter lending criteria.
Lending Options: Lending for investment differs from buying a home to live in. Criteria, interest rates, and bank appetite can all vary – and that’s where our advice comes in.
Cash Flow & Ongoing Costs: It’s important to assess affordability, not just upfront, but over time. We help clients understand how rental income, interest payments, and property-related expenses factor into the lending equation.
Investing in property can be a great way to build wealth, but it starts with smart lending decisions. As mortgage advisers, our job is to guide you through the process of securing finance that aligns with your goals, budget, and long-term plans.
We don’t provide investment advice, but we can make sure the lending side of your investment journey is structured for success.
Want to explore your options? Contact us!
Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute financial or legal advice. While we aim to keep the content accurate and up to date, mortgage rules, lender policies, and market conditions can change. We recommend speaking with a licensed financial adviser or mortgage professional before making any decisions regarding property finance.