In this episode, we are joined once again by Shelley Funnell from Henderson Reeves, a mid-tier law firm based in Auckland and Whangarei. And in the show we discuss trusts. Shelley shares the stat that there are an estimates 500,000 trusts in New Zealand ... but many of them may not be necessary.  During the show, Shelley shares the 3 reasons why people typically have used trusts in the past, but also the 3 reasons why these may no longer apply. To learn more about property investment in nz, then check out the Epic Guide to Property Investment our 16,000-word guide to investing in property within New Zealand. 

In this episode, we discuss buying property off the plans – which is where you purchase a property and commit to buying it before it has actually been built.  If you haven't heard about buying property off the plans then this might sound really scary. However, there are some really good reasons why you might purchase an investment property off the plans:  First of all, when you purchase a brand new property, it is not subject to the 30% deposit requirement that banks need in order to give you the finance. This means that banks will happily lend you the money to purchase a property with a 20% or even a 10% deposit.  Because the property hasn't been built yet there is less competition to buy the property. There are no auctions to go to and the buyer has more control in the sale You're able to buy in today's market, however by the time the property has been built and you settle with the developer (i.e. pay them the money) your property may have gone up in value during the phase of the build. Shelley and Ed then discuss how to protect yourself from a legal perspective by using Sunset Clauses and how to resolve disputes with a developer.

In this episode, we discuss a few of the things that can go wrong in a property investment deal, which a solicitor would usually pick up on.  Shelley Funnell is the guest on the show, and she shares one story regarding properties bought by a permanent resident, who had recently moved back to New Zealand. Because this purchaser hadn't been resident in New Zealand for 12 months, he wasn't legally able to purchase the property, yet his contract was already unconditional ... that is he has to settle the property and go through with the transaction.  So, his best course is to delay settlement until the transaction can legally be registered with the government.  These are exactly the sort of situations a good solicitor should pick up on before a contract goes unconditional.  Shelley Funnell is a solicitor at Henderson Reeves, a mid-sized law firm based in Auckland and Whangarei. 

In this episode, we discuss the key clauses you can use in a sale and purchase agreement when buying property in New Zealand.  This is important for NZ property investors because DD clauses can be used to put a property on hold to investigate the property before making it go unconditional. This means that you can agree the properties price in principle (and have the right to purchase the property) while you ensure that it is fit for purpose. We mentioned in the show that we would include a Due Diligence clause you can use: This agreement is entirely conditional upon the Purchaser in its sole discretion being satisfied that the property is suitable for the Purchaser’s intended uses following the Purchaser carrying out due diligence investigations on the overall viability of the property and including but not limited to searching any and all easements, and of any requirements of the local authority or financier, this clause is for the sole benefit of the Purchaser and the Purchaser shall have until 4pm on 10th working day from the date of this contract to give to the Vendor’s solicitor notice that this clause is satisfied failing which the contract shall be at an end. This clause may be waived by the purchaser prior to the prescribed time at the sole discretion of the purchaser.

In this episode, we are joined by Shelley Funnell who is a solicitor and HendersonReeves in Auckland. During the show we discussed the new sale and purchase agreement that was introduced on the 6th December 2019. The Real Estate Institute of New Zealand (REINZ), Auckland District Law Society (ADLS) sale and purchase agreement is the standard S+P that is used to buy and sell property in NZ.  The new version of the contract (the 10th version of the document) is important for property investment because several clauses have changed. For instance, the interpretation of the finance clause is such that you are no longer able to use the finance clause in the same way as a due diligence clause (a get out of jail free card). If property investors want to cancel a contract using the finance condition, then the vendor can require that evidence is provided that the buyer was unable to obtain funds for the purchase. Other changes have also been made in respect to the use of fax machines, and toxicology reports. HendersonReeves is a medium-sized law practice based in Auckland and Whangarei.

In this episode, we discuss refinancing, which is the mechanism property investors can use to leverage off their existing properties in order to grow their portfolio.  There are to ways to refinance your investment property: Refinance in order to increase your lending on a property Refinance in order to change banks (from one bank to another)

In this episode, we discuss three things that stop people from investing in property.  Personal reasons Fear and worry. For example, the worry that as the size of your portfolio increases, there is a greater risk of vacancy. Lack of Time. If you're not out there looking for new properties then you are less likely to take action on one.  Lack of Ambition. If you don't have a property coach working with you to achieve your goals then you might not hit them. Lending Restrictions Banks treat you more stringently when you have a large level of debt with them. LVR Restrictions, i.e. you don't have enough useable equity to buy the next investment property. Property Choice Investing in existing properties will use up more useable equity than if you were to invest in brand new properties. Because new properties are exempt from the LVR Restrictions you can buy around 50% more property using the same level of deposit when you invest in new, rather than existing properties

In this episode, we discuss 6 events that have occurred over the last 20 years that have impacted the NZ property market, with a particular focus on the Auckland property market.  Those 6 events are: 1. Leaky Homes Crisis 2. 67 Finance Companies Fell Over 3. Christchurch Earthquakes 4. LVR Restrictions Were Introduced 5. Brightline Tests Were Introduced 6. Introduction of the Internet and the Digital Economy The key takeaway from this episode is that although these factors all happened, the NZ property market was still strong and continued to appreciate even as shocking events were introduced.

In this episode, we discuss whether there really is a housing shortage within New Zealand, and particularly within the Auckland property market. In pure economic terms, there can never be a shortage of any good in a free market, so long as demand and supply don't significantly change. Under these conditions, if there are more buyers than sellers in a market then those buyers will bid the price up. As they do, some buyers will drop out of the market and more suppliers will be drawn into the market by the higher prices that are now available. This will continue until there is an equilibrium. However, we also discuss that the assumption that demand and supply are constant while these market dynamics play out, may not be accurate. For instance, even as prices are bid up and some buyers drop out of the market, there are even more buyers entering the market wanting property. This occurs through organic population growth (more people being born than those that are dying) and through historically high net migration in NZ. The effect of this is that the additional demand coming into the market creates a perpetual shortage. And even though suppliers (both developers and owner occupiers) will be drawn into the market, the lag in the time it takes for that supply to come onto the market means that suppliers can never fully respond to close the shortage.

In this episode, we discuss why your house isn't an asset, particularly when you begin to plan your retirement. The conclusion we come to is that the reason your house isn't an asset is that it doesn't produce any income. Sure, you can build wealth within your property, but you can never use it or unlock it unless you borrow against that wealth to pull the cash out to get started in property investment. We also discuss the option of putting a minor dwelling on the back of your existing property, which you may be able to rent out in retirement, in order to turn your house into an asset. 

In this episode, we discuss Mount Wellington, a suburb in Auckland's property market. Our belief is that Mount Wellington has a very strong property market and makes a good hunting ground for good quality investments. The median house price in Mount Wellington increased at a compounding rate of 8.35% between January 2000 and August 2018. And of the top 20 suburbs that grew the fastest over that period, Mount Wellington is the only suburb where the median house price is below $800K. This indicates that Mount Wellington properties will likely achieve superior capital growth, and yet they are still priced at a relatively affordable entry price point. We also discuss that Maungakiekie-Tamaki, the local board area in which Mount Wellington is located, is both a)  experiencing more rapid population growth than Auckland at large, and b) has the second-highest GDP of any Auckland local board area (2nd only to the Auckland CBD).  

In this episode, we attempt to dispell the myth that property investment is undesirable for New Zealand (or any country). There are several reasons why we believe that property investment is good for the country: 440,000 of New Zealand's 525,000 rental properties are supplied by Mum and Dad investors (the private market). Every additional property that is supplied by private investors is another house that the government doesn't have to provide. This saves the government spending enormous amounts of public money on housing Many residential properties are negatively geared, which means that the investor is putting money into the property each week, and the rent doesn't cover all of the expenses associated with the property. This means the investor is effectively subsidising the tenants to live in the property The reason many Mum's and Dad's become property investors is to sort out their own retirement. By investing in property they are taking responsibility for their own retirement, which places less burden on the state When property investors invest in brand new properties they help more developments get off the ground. If property investors weren't in the market then developers could only sell to owner-occupiers. This would shrink the market for development and would mean that fewer houses would be built, and they may be more costly, both to get off the ground in the first place and because of economies of scale When property investors bring new houses onto the market – whether through building new developments or renovating run-down properties – the supply of housing increases. This decreases the price of houses, relative to what they would otherwise be.

In this episode, we discuss the OneRoof Property Report for the last quarter of 2019. This report sums up how the property market has operated over the last year in New Zealand.  Ed's top takeaway is that although the property market has faced so many changes in the last year: Ring-fencing laws changing, the Healthy Homes Act implementation, a potential capital gains tax being introduced and the government's focus on reducing net migration. And yet, despite all this, the median house price in New Zealand still increased by 8,19%. Despite these changes, the market is still resilient and that's because the fundamentals of the NZ property market are still strong Special guest, Dennis Schipper shares that we're seeing more first home buyers enter the market, which is a great sign that decreased interest rates and the slight relaxation of LVRs (which came out earlier this year) are having an effect. Dennis' top tip is to follow where first home buyers are buying because he sees it as a good sign for future property price growth as families settle into particular areas. As always, if you would like to find out more about property investment in NZ, then check out the Epic Guide to Property Investment in NZ on the Opes Partners website.

In this episode, we discuss 5 reasons why it is a good idea to invest in the main centres when beginning your journey into property investment in NZ. These are: The economy and job market is more diversified in the larger centres The main centres tend to have higher population growth, even as a percentage. This helps to sustain housing demand, which pushes prices up. There is a larger pool of potential tenants, so you're less at risk of vacancy There is more infrastructure being built, which opens up opportunities for capital growth Because of these other reason the major centres tend to be more stable and predictable than the other centres

In this episode, we are joined by Dennis Schipper, a consultant at Opes Partners. Dennis has a lot of experience in property investment nz.  Here, we discuss 6 strategies you can use if you've got a property in mind, but haven't got the ability to get the lending. This include: Get your house revalued (or do minor renovations to your property to increase the value of your owner-occupier home and then get it revalued) Consider a co-ownership – owning half the house with family and/or friends Work with a money coach to decrease your expenses Get a higher paying job/take on a secondary job/or get your partner to get back into the workforce if they haven't been working Don't buy that property, but buy another one. e.g. look at a new property where the deposit requirements are more relaxed e.g. new properties

In this episode, we discuss the Reserve Bank of New Zealand's recent comments on the banks' test servicing rates. As a recap, these test rates, are the interest rate that the bank will use to test whether you can afford a mortgage or not for your investment property (or any other property you are looking to purchase). The RBNZ has said that "we may be at a turning point" in regards to these test rates. If these rates decrease (they're at about 7% at the moment) then borrowers will be able to borrow more, which could add inflationary pressures to the market.  These moves would bring NZ inline with the Australian banks, which have recently decreased their test rates to around 6%. However, it should be noted that the test rates are set by each individual bank, and the central bank does not have control over how the banks set these rates.

In this episode, we are once again joined by Di Foster, property investor and leadership coach. We discuss that women need to up their investment game and invest more in property. According to one study, women retire on 50% less than men and globally have lower financial literacy. These are the sort of stats that made Di want to get stuck into property investment and make a change. 

In this episode, we are once again joined by property investor and leadership coach, Di Foster. Di initially looked at investing in the Uk property market. However, there were several reasons that gave her pause. Here, Di compares the two markets and the yields she was seeing in the UK market, before she eventually decided to invest in NZ.

In this episode, we are once again joined by property investor and leadership coach, Di Foster. Here, Di compares DIY investing (going at it alone) with using an expert property investment coach.  Although Di has quite the personality, she talks about how she and her husband weren't the sorts of people who would go out and buy a house on their own and get it rented. However, Di talks about some of her friends and colleagues who DIY quite happily.

In this episode, we are once again joined by property investor and executive leadership coach, Di Foster. After helping herself and her husband into property investment, Di began wanting to help her father, nieces and nephews all get into the property market. What Di discovered is that each generation needs to get its head around a slightly different concept. For Millenials, it's lifestyle. Millennials need to understand that they don't need to live in their first property. Sometimes it's more appropriate to buy an investment property and get exposure to the property market, rather than buying an owner-occupier home For Gen X'ers it's about cash. Gen X'ers need to be reassured that they aren't going to have to sacrifice their lifestyle and cover all of a second mortgage in order to be able to hold the property  For Boomers it's about debt. So many Boomers work their whole lives to get out of debt, and then they need to get back into debt in order to get ahead. The drivers to get into an investment property are also different. For Millennials it's about getting ahead themselves. Gen X'ers want to sort themselves for retirement and for their children, and Boomers want to maintain their capital position in retirement in order to look after their future generations. 

In this episode, Di Foster – property investors and executive leadership coach – walks through the reasons she decided to get into the investment property market and become a property investor. Di opens up and tells us that she was in a different position than she thought she was going to be in, due to a health scare. This is what prompted her and her husband to start looking at investment property. We talk through one of the properties Di has invested in – a three-bedroom, two-bathroom standalone house in Wigram, Christchurch. She talks through how the property was bought for $500,000 and three years later is valued at $570,000 – a 4.4% growth rate year on year. That compares to a growth rate of 2.6% in the Canterbury region over the same period. 

In this episode, we discuss Christchurch's 'As Is' Market. The Christchurch earthquakes were devasting for homeowners in the Canterbury region. Many were left unlivable and there was a severe housing shortage in the city.  After homeowners were paid out, and the EQC had made repairs to properties, it was clear that there were still properties that needed work. This created the 'As Is' market. These are properties that still require work and repairs before they can be brought up to code and to an acceptable standard. Developers will buy these properties, repair them and sell them back on the open market – often generating a significant return.  During the show, Nick reveals the real numbers and talks openly about the difference between the real numbers and the vanity metrics.

In this episode, we are joined by Nick Johnstone a developer investor based in Christchurch. Nick walks us through a feasibility study he did on a piece of land.  His options were to either demolish the existing property on the land and build three new units. Or, he could build a minor dwelling on the back of the property and rent it.  He shows us why it made more sense for him to build the minor dwelling, which generated a smaller return, rather than going through a complex development process. 

In this episode, we answer another question from one of our youngest listeners, Jackson. Here he asks, why do people rent your houses? There several reasons why someone might rent from a property investor. These include not being at the stage of life where the person is ready and able to buy their own house, not wanting to take on debt, being transient or not being able to afford to buy in the city that a person wants to live in. 

In this episode, we answer a question from one of our youngest listeners, Jackson. Here, he asks a simple question: if I need to work to earn money to live on today, what will I do when I retire? This is important because before you can close your retirement plan in place, you need to know that your retirement gap exists.  In the show we talk about the two approaches to closing your retirement gap with property investment. 

In this episode, we discuss negative gearing. This is the situation where your property makes a cash loss each year after factoring in interest costs. Some property investors steer clear of negative gearing others embrace it.  The fact is that negative gearing typically occurs when mortgage repayments are high and when investors have purchased their investment property with 100% lending. This means that no 'real' deposit has been used to secure the property and the only cash that has been put into the property comes from the investor's 'top-ups'. In the show, we discuss the good and the bad of negative gearing within property investment. 

In this episode, we discuss the fact that you're not going to live in your investment property, so you can't treat it as if you will. Instead of looking for factors that you would 'like' to have as a tenant, you need to look for the factors that will make it a great investment: good capital growth with reasonable cashflow. 

In this episode, we discuss that many people will wonder why they should get into property investment now ... why not wait a few years? We discuss that so many things can change over time in property. In 5 years you may be subject to stricter lending criteria, higher market prices or increased regulation.  You've also got limited control about what could happen in the future, and you have no certainty about what the future might entail. Whereas you can analyse market conditions and regulatory frameworks as they are today.  Finally, if you wait, you miss out on any capital growth that may have occurred during your ownership. This is what will be your largest cost in property investment. 

In this episode, we discuss rental yields and which towns generate the best rental return for investors. We walk through the top 5 towns, and discuss the reasons why they might get superior rental yields.

In this episode, we talk about whether prospective property investors should pay off their personal (owner occupier) mortgages before investing in property – and which they should pay off first.  This question came from the Property Investment Chat Group NZ, a Facebook group where investors discuss property in New Zealand.  Andrew walks through the reasons why it is generally better to get into investment property early rather than wait. And that it is typically better to pay off your own occupier mortgage before you pay down any investment debt.  The key reason behind the latter point is that it is inefficient from a tax perspective to pay down investment debt first. That's because the interest on an investment loan is tax-deductible, while it isn't on your personal home. 

In this episode, we discuss this week's Reserve Bank update. While not much changed from a policy perspective – the Official Cash Rate didn't change and the LVRs remained at their current levels – there were some key points made, which indicate future moves.  The Reserve Bank indicated that a rate cut is likely to occur in February 2020 and that the bank would still like to see increased spending from the government and businesses. For them, increased long term investment is still the most desirable outcome.  The bank is taking a wait and see approach, they want to see the benefits of their previous rate cuts hit the market before taking further action.  The general trend for property investment is positive. If LVR restrictions and interest rates continue to ease – as we expect they likely will, then property investors (especially 1st and 2nd time property investors who aren't already heavily indebted) will benefit. 

In this episode, we discuss why the NZ property market is unique. We identify that because New Zealand is a long skinny country, which was colonised, our major cities are primarily port cities – based around large bodies of water. This is true for Auckland, Tauranga, Dunedin, Wellington, New Plymouth – and even Christchurch. This means that there is an area the city can't expand into. This means that inner-city land becomes more desirable because the new suburbs are further and further away (compared to if the city could expand in a perfect circle.  We also discuss that New Zealand is politically stable, has a relatively prosperous economy and is protected from many global headwinds. This causes the New Zealand property market to be particularly buoyant and robust. While it may seem attractive to invest overseas, we can sometimes forget, as New Zealanders, that there is a great property market that we can invest in at home. 

In this episode, we discuss that property investment requires a sacrifice – an investment. It might sound obvious, but Andrew gives an example of a couple who wanted to invest in property but didn't want to sacrifice their current lifestyle.  His challenge to them was to sacrifice now and invest ... or continue to live their current lifestyle and sacrifice later in retirement. 

In this episode, we discuss how property cycles tend to work, with a special mention on the Auckland Property Market. Property cycles are arguably one of the most important considerations when investing in property. However, they are very hard/impossible to predict.  One of the key takeaways from the show is that the property cycle is not the same as the economic cycle. Where shares tend to fluctuate widely in value based on the economic cycle, this is not the same for property.  New Zealand's property cycles tend to operate in spurts. When the property market heats up, property prices will leap for a few years, and then flatten out for a few years. When the next property cycle comes, property prices will leap again for a time, before flattening out again.  This can be seen by looking at any graph of a region's median house price over a period of 20+ years.

In this episode, we give three real-life case studies about what can happen to property investors when they take the plunge.  2 of the investors within these case studies achieved large gains in the value of their properties within the first 4-6 years of owning their investments. 1 of them is yet to see any substantial gain from their investment. We talk through some of the reasons why this might happen, and how property cycles impact the immediate gains that can be achieved by investors. 

In this episode, we discuss whether Mangere is a good suburb to invest in. Mangere is one of Auckland's lower socio-economic areas, and may not typically have been where most investors would have thought to buy a property. However, there are a lot of good reasons to invest in properties that are located within the suburb.  Over the last 18.5 years, Mangere properties have appreciated at a rate of 8.08%. This is well above the average appreciation rate of most houses in the Auckland property market, and certainly around the country.  On top of this, Mangere greatly benefits from the expansion that is currently underway at the Auckland International Airport (AIA). AIA is currently investing over $1 million per day to improve its infrastructure. This includes improving the shopping experience and building a new hotel. This means more jobs. Because Mangere is the gate-way to AIA, we would expect an increase in the number of people who would want to live in the suburb. This is a positive sign for both investors' ability to tenant their properties, and for their long term capital gain.

In this episode, we discuss the nitty-gritty of what property managers really do for property investors. Over a 10 year period, you are likely to pay your property manager the same amount of cash as you will your real estate agent. However, for that, you will get significantly more value and service.  Celia estimates that over recent years the workload for a property manager has increased by 30%, however, they haven't increased their fees.  Property managers have awkward conversations with tenants, ensure that they pay their rents, follow up when that doesn't happen and ensure the property is maintained and expected. But, the real benefit is in their institutional knowledge and the paybooks/procedures they have in place so that if something goes wrong it can be managed.  This is the final show – in this round of recordings – where we are joined by Celia Burbery from Auckland Property Management.

In this episode, we discuss what a good rental yield is for Auckland property investors. Nationally, we know that Auckland typically will deliver higher capital growth but lower yields.  This depends on the type of property you have in Auckland, its location and then purchase price.  While the national median yield is over 4%, in Auckland, we would typically think someone hitting 4% would be doing well. We are once again joined by Celia Burbery, general manager of Auckland Property Management. Celia has over 35 years of experience in property, and we are really privileged to learn from her experience. 

In this episode, we are joined by Celia Burbery from Auckland Property Management. Property management is so important because if you want to get the long term gains from investment property, then you need to hold the property for the long term.  A big part of being able to do that is managing the property itself. That's where property managers come in. Recently there have been a few law changes and judicial rulings that impact property investors. In the show, Celia details what these are, including the new Health Homes Act and walks us through what property investors need to know.  Note: Auckland Property Management are specialists in the Auckland Property Market and do not operate outside of Auckland.

In this episode, we discuss the additional costs you will face as an Airbnb property investor. These include all the utilities you need to cover e.g. water, power, internet. You'd also expect to pay for consumables like salt and pepper, shampoo, milk (all the creature comforts guests expect). Property management is also more hands-on, which leads to higher costs. Management fees are also higher. Long term rental management fees are 7-10% of gross yield. Airbnbs will range from 20-30% of the net yield.  Property investors will also need to furnish the property to a high standard including items to make the property homely e.g. coffee table books. And depending on where the property is located, you may be subjected to higher rates. In Auckland, rates can be as much as 3x higher than a standard tenancy. This is the final episode in this round of podcasts where we are joined by Jon Lawry from Urban Butler. In the show, Jon mentioned that he has an ebook detailing the 5 things that every Airbnb host needs to know. To access that free ebook fo to the Urban Butler website

In this episode, we discuss a report that was published about Airbnnb by Deloitte, a consultancy, in 2017. This includes the economic impacts that Airbnb has on the economy at the time.  The report shows that 35% of Airbnb nights were from New Zealanders, followed by Australia, United States, China and the UK.  Airbnb had circa 1.5 million guest nights within the study period, and brought around 4x more economic activity because of other spending.  We also talk through how to gain insight into the market by comparing the data for the different regions in the report. This includes a specific highlight on the Auckland Property Market. In this recording, we are once again joined by Jon Lawry from the Urban Butler.

In this episode, we discuss that if property investors want to get a high rental yield on their Airbnb, they need to get a high occupancy rate. And the way to do this is knowing what guests are looking for when booking an Airbnb. If you know what guests are looking for, you can give it to them, and better market your property.  From Jon's experience there are four things that guests typically look for (in this order): 1. Location 2. An appealing property 3. A price they can afford 4. Reviews For this episode, we are once again joined by Jon Lawry from Urban Butler. 

In this episode, we discuss one simple strategy you can use to double your price on Airbnb – dynamic pricing. This is where you vary the price of your property based on what is happening in the market. When there is a lot of demand in the market for flights or hotel rooms, hotels and airlines will put their prices up.  Jon shares that software is now available that allows Airbnb hosts to do the same thing. This means that for certain periods of high demand (for instance when big concerts and events are happening) property investors can double the daily nigh rate of their Airbnb.

In this episode, we are joined by Jon Lawry from Urban Butler to discuss using Airbnb with property investment. This episode specifically covers the yield you can expect from an Airbnb. Typically you can expect at least a 50% higher net yield from an Airbnb compared to a standard long term tenancy. It is, however, important to note that to generate these types of yields you need a property that will appeal to people who use Airbnb (apartments near the centre of town). It's important to also note that your gross yield will be far higher than a long term tenancy, but you also face higher costs, which brings down the net yield.

In this episode, we discuss the process of actually buying an investment property – after you've found the specific property that you want to buy. This includes the reports you need to get, the clauses that need to be negotiated, the back and forth that occurs when negotiating the price, and picking up the keys.  There are over 150 different steps that make up the property buying process, and the trick is to know what's coming so you can prepare. 

In this episode, we discuss whether Hamilton is a good place to buy an investment property. We specifically discuss the amount of infrastructure investment that is currently occurring in Hamilton. This includes the Ruakura Inland Port, The Waikato Expressway, and the value of assets held by the local iwi – Waikato Tainui. We discuss that the average rate of median house price growth value in Hamilton suburbs over the last 18 years has been 6.14% per annum. This is higher than the 5% capital growth appreciation that we typically use when forecasting property values.  On top of this, Hamilton is still relatively affordable and is expected to attract the third-highest level of population growth over the next 20 years (Waikato region).

In this episode, we discuss three different thresholds you need to meet in order to get started in property investment. This content comes from an article that Andrew recently wrote for Juno Investment magazine, which will be released as part of the next issue.  After sharing the three thresholds, Andrew then shows how you can break the rules and invest anyway.  These three thresholds are: $90,000 NZD in useable equity within the property. That's $90,000 of money you can take out against your home, which is different than equity $50-$100 per week that you can contribute to topping up the mortgage of the property A team of people who can guide you through the process. There are several strategies you can use to break these rules, which we go through in the episode. To find out more about property investment, head to the Opes Partners website to read the Epic Guide to Property Investment, the most comprehensive guide to property investment in the country which is freely available on the internet. 

In this episode, we look at whether new builds, or existing renovation projects give the highest return on the capital you have invested. This episode is based on an article that Andrew recently wrote for the NZ Property Investor Magazine.  In the article, Andrew compares a $500,000 new build, with an existing property purchased for $400K and then renovated for $50K (resulting in a renovated property with a $500K valuation). He shows that a new build would require capital of $100K, whereas the existing property would require the investor to risk $170K worth of capital. While – over a 10 year period – the existing property would net an additional $64K worth of returns, as a percentage of the capital risked it returns a lower ROI. The new property nets 291% ROI, while the existing property returns 209% over the 10 year period.  If you are interested in learning more about property investment in New Zealand, then head to the Opes Partners website to read the Epic Guide to Property Investment in NZ. This is the most comprehensive, free guide to investing in property on the internet.