A residential investment property is defined as a dwelling that is not occupied by the owner but is instead rented out. This enables the owner to enjoy rental income and capital growth from the property and may also provide tax benefits.
A good investment property is one that is easy to rent, with steady tenant demand and gradually increasing rental rates. It should be built from durable, proven materials and be low maintenance.
Location is an important factor. Good investments are likely to be in areas close to universities, hospitals and city centres with good access to public transport and shops. These properties will always be in demand from tenants and so their capital values will continue to increase.
For tax purposes, a dwelling is broken down into land value, improvements value and chattels value. This makes it easier to maximise tax benefits.
Our brand new properties present an opportunity for the astute investor to receive a healthy financial return through a combination of regular and increasing cash flows, depreciation deductions that reduce your income tax and good capital gain. Carrying out a ‘chattels valuation’ when purchasing ensures that the maximum deductions can be claimed by your accountant. Another benefit to buying new property is that you can expect low maintenance costs.
I read that Assured Property is a member of the New Zealand Master Builders Federation, what does this mean?
First of all, the very fact that we have applied for and been awarded New Zealand Master Builders Federation membership sets Assured Property apart from other companies involved in the building of residential investment property. Being a New Zealand Registered Master Builder means that Assured Property has met all the criteria set down by the Master Builders Federation to become one of New Zealand’s premier building and construction companies.
A major benefit to buyers is the Master Build Guarantee on New Homes. This guarantee covers a period of 10 years. If for any reason Assured Property is unable to complete the project, Master Build Services Ltd will find another Registered Master Builder to do so. If construction problems arise after completion and Assured Property is not able to resolve them, Master Builders Federation will step in to put things right.
In essence the Master Build Guarantee is about risk reduction and peace of mind. Simply put, why would an investor buy a non-Master Builder investment property when they could buy from Assured Property.
A 10% deposit per property is payable on the sale and purchase agreement becoming unconditional. The deposit will be securely held in our solicitor’s trust account until settlement which occurs 5 days after the certificate of title and code of compliance have been issued. You are not required to make progress payments as we fund the development costs ourselves. You simply pay a deposit on unconditional date and the balance on completion date.
Yes. We will endeavour to assist you in any way possible, however, as when considering any legal agreement, it is recommended you seek independent advice relating to your individual circumstances. We can recommend professionals that will advise you if required.