Investing 101
20 August 2023 | Momentum Realty

The top 5 investment Criteria

While you’ll have your own criteria when it comes to purchasing an investment property that helps you achieve your financial goals, these are the top 5 criteria we think all investors should consider.

1. Buy new

Ideally you’d be buying a property off the plans that is yet to be built or still under construction. This guarantees that the property will qualify as a new build and gives you additional time to bolster your financial position before you have to settle.

2. Pick the right location

Buying in an area where there’s a shortage of housing supply means the area is experiencing growth which will contribute to capital growth of the property. Be sure to check planned infrastructure like roads, schools and transport in the area to make sure it can support the additional people.

3. Gross yield

Look for properties that have at least a gross yield of 4%. This will help lessen the pressure on your cash flow by minimising how much you’ll need to ‘top-up’ the property to bridge the gap between what you’ll get in rent and what the mortgage will cost.

4. Built by a reputable builder

This will help ensure the build and materials are of a high quality and that you’ll have a home that tenants will love to live in. It’s worth checking what other builds they’ve been involved in and what guarantees they provide for their buyers.

MR build partners have been vetted by our stringent onboarding processes. You can have confidence that your property will be completed to a high standard

5. Rent ready

Make the transition to landlord easy by buying a property that has fencing, landscaping, carpets, blinds and a heat pump included in the purchase price and is healthy homes certified.

This means less for you to do when you settle and your tenants have a comfortable home to move into.

Secure your investment from the start by purchasing a property that also comes with a rental guarantee.

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Want to invest in property? You’ve come to the right place.

While property investment may seem simple from the outside, there’s a lot that goes into buying the right property and making sure you can hold it through the fluctuations of a property cycle. In this guide, you’ll find everything that you need to know about what makes property such a powerful investment option, and how to make sure you buy the right investment property to meet your financial goals.

Click here to download the New Zealand Property Investor Handbook by Momentum Realty.