Questions & Answers
Do I have to use NZINVEST's services or can I use my own providers?
NZINVEST offers finance broking, accountancy, property management and insurance services for the convenience of our clients; however there is no obligation for clients to use any of these services if you do not wish to.
How is NZINVEST different from other property investment companies?
- NZINVEST offers finance broking, accountancy, property management and insurance services for the convenience of our clients; however there is no obligation for clients to use any of these services if they do not wish to.
- NZINVEST does not offer in-house legal advice. We encourage clients to seek their own legal counsel.
- NZINVEST does not offer rent guarantees. A well-selected property in a good growth area with competent property managers should not require a rent guarantee. Rent guarantees can hide bigger issues, like tenant arrears, from the owner. Allocating these funds back into your own cash flow is generally better for the performance of your investment.
- NZINVEST does not offer Buy-Back schemes or Rent-to-Buy schemes. Clients have total control of their asset and are free to sell their property at any time, to whomever they wish to sell it to.
- NZINVEST does not charge the client advisory fees or commissions on the sale of property.
- Clients can view properties prior to selection. All NZINVEST clients are given the opportunity to view several properties that match their needs before making a decision.
- Clients can expect transparency and open communication in their dealings with NZINVEST.
- NZINVEST's approach to investment is based on a long term strategy; not speculative opportunities.
How long should I keep my investment property?
We recommend that properties are held for a minimum of 10 to twelve years. Many of our clients aim to purchase as many properties as they can while they're working. By the time they retire they may have several self funding investment properties providing them with a passive income.
What level of capital growth can I expect?
NZINVEST encourages clients to take a long-term view of property investment. When taking a long-term view the annual capital growth rates are less important, as history shows us that there will be flat years and market corrections but there will be years where prices escalate significantly or catch up. While predicting future property trends is not possible, historical trends show that property values have typically doubled approximately every ten to twelveyears.
Does NZINVEST sell apartments?
Yes, we do. NZINVEST have strategic partnerships with many property developers in Auckland, Tauranga and Hamilton. Our properties are typically new and located in areas that we feel have good potential for growth.
The properties range from freestanding brick and tile homes through to townhouses and apartments; each client works closely with their Property Consultant to determine the best property for their individual strategy.
How does NZINVEST make its money?
NZINVEST works with developers to research and develop property opportunities. This joint venture type relationship produces many properties that are constructed specifically for investors. In addition to sharing the developer's margin on these projects, NZINVEST is paid broker or referral fees from third party suppliers for the provision of financial services (i.e. finance and insurance broking fees). We also receive fees from the provision of our Accountancy and Property Management services (paid by our clients at market rates).
Does NZINVEST have first rights on my property if I wish to sell it?
No. NZINVEST does not offer Buy-Back schemes or Rent-to-Buy schemes. Clients have total control of their asset and are free to sell their property at any time, to whomever they wish to sell it to.
Do you have in-house legal counsel available for clients?
We do not offer in-house legal advice. We believe this would be a conflict of interest and encourage clients to seek their own legal counsel.
What other fees are incurred on top of the property purchase price?
Additional costs incurred with the purchase of an investment property include conveyancing/legal fees and independent valuations for home and chattels. We recommend clients allow up to $3000 for these costs. In most cases, if we are arranging finance for our client we recommend establishing a ‘buffer account' to cover the set up costs, incidental costs and an allowance for any downtime in rental payments. NZINVEST does not charge the client advisory fees or commissions on your purchase of a property.
How can I be sure NZINVEST properties will make good investments?
While there is no guarantee of investment performance, every development we work with undergoes close scrutiny to ensure it stacks up against our strict criteria. Our investment properties are new (so they qualify for full depreciation allowances), designed for low maintenance and located in areas with good infrastructure and strong demand. All properties must achieve a 90 percent rating or higher against our 100 point checklist.