Rotorua Daily Post
  • Rotorua Daily Post home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
    • All Lifestyle
    • Residential property listings
  • Property
    • All Property
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Rural
  • Sport

Locations

  • Tauranga
  • Te Puke
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Taupō & Tūrangi

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales

Weather

  • Rotorua
  • Tauranga
  • Whakatāne
  • Tokoroa
  • Taupō

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Rotorua Daily Post / Business

Jeremy Tauri: Research before you purchase

NZME. regionals
10 Feb, 2015 04:00 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

If you want to make some money quickly, your best bet is probably to buy a property where you can add value.

If you want to make some money quickly, your best bet is probably to buy a property where you can add value.

I saw, on the back of my local paper, an advertisement from a real estate agency looking to entice local investors to buy apartments in Auckland.

I can understand why this would appeal if you live in a part of the country that's had single digit percentage growth in property prices while Auckland's market increased 13 per cent last year alone.

But it's important to approach the decision calmly.

If you're thinking about property investment, it helps to start off with an assessment of what you hope to achieve. Do you want cashflow or capital gains? Are you hoping to make some money in the short term, or do you want something to help you in retirement?

If you want cashflow, you'll need to look for cheaper properties. Apartments are virtually the only properties in Auckland that have a hope of generating more rental return than they'll cost to own if you're buying now because rent increases have not kept pace at all with price rises.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

But there are lots of opportunities in regional NZ. If you live in a smaller centre, there may be benefits to owning a property locally that you can check on as you need to.

The downside to cashflow investing is that -- usually -- you get fewer capital gains. Cheaper places generally don't increase in value as fast or as much as the more expensive areas. Is that a tradeoff you're willing to make?

If you want to make some money quickly, your best bet is probably to buy a property where you can add value. That could be somewhere you can renovate or subdivide. This comes with a big warning, though -- the IRD will want to tax you when you a sell a property if you bought it with the intention of sale. And then sometimes, after the tax, effort and finance the return might not be as great as you'd expected, you'll need to do your research and sums on how much the property's able to realise.

Advertisement
Advertise with NZME.

Most property investors in New Zealand are of the buy-and-hold persuasion. They add to their portfolios over a number of years. Over time, rental increases improve the rental return and cashflow from those investments and price increases boost the equity in their properties. Sometimes they use that equity to buy more houses.

It's easy to get caught up in the hype of a market that's doing well but the worst investment decisions are made when people buy at the peak of the market and sell when it drops. If you're thinking about investing, make sure you do your homework and talk to some impartial advisers.

Jeremy Tauri is an associate at Plus Chartered Accountants.

Discover more

Jeremy Tauri: Good time for an office cleanse

14 Jan 04:00 PM

Jeremy Tauri: A little list can save you a lot of hassle

20 Jan 04:00 PM

Jeremy Tauri: Overseas pension? Prepare to pay up

27 Jan 04:00 PM

Jeremy Tauri: Make staff, skills, debt a focus now

03 Feb 04:00 PM
Save

    Share this article

Latest from Business

Premium
Property

'Māori are long-term investors' - learning from success and failure working with iwi

20 Jun 12:00 AM
Rotorua Daily Post

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM
Premium
Property

All rentals must meet five Healthy Homes standards by July 1

17 Jun 11:00 PM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
'Māori are long-term investors' - learning from success and failure working with iwi

'Māori are long-term investors' - learning from success and failure working with iwi

20 Jun 12:00 AM

Developments with tangata whenua: what spells success - or not?

'Life-changing': International flights return to Hamilton Airport

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM
Premium
All rentals must meet five Healthy Homes standards by July 1

All rentals must meet five Healthy Homes standards by July 1

17 Jun 11:00 PM
Premium
How much trust should we place in analyst advice?

How much trust should we place in analyst advice?

15 Jun 04:00 PM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Rotorua Daily Post e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Rotorua Daily Post
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Rotorua Daily Post
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP