Friday 22nd April 2022
Page 4
GRANT McILROY Rural & Lifestyle Consultant with Property Brokers Darfield • • •
30 yrs Sheep & Beef Livestock Agent 15 yrs Dairy Livestock Agent 6 yrs Rural & Lifestyle Real Estate
Please phone
Grant 027 345 9262 68 South Tce Darfield, 7510 grantm@pb.co.nz
PROPERTY AS AN INVESTMENT I recently read an article by Katrina Shanks, who is the Chief Executive of Financial Advice New Zealand, who put investing in property into a great perspective. Between 1965 and 1991, the average increase in value was 12 percent. From 1991 this increase dropped to 7 percent, however, was coupled with lower inflation in general. Of interest that is a higher return than shares, or in fact inflation over the same period. Whilst there have been many ups and downs in the property market, looking at the average
it still remains above inflation, that evil word that erodes your net wealth. One of the key fundamentals of investing is staying ahead of inflation, and as history shows property still remains one of the best investment decisions you can make. Like any investment there are risks, and you need to factor this in by asking yourself some pertinent questions such as when will I need the investment money for retirement, will this be soon, or do I have a bit more time on my hands? Can I afford to lose some of the investment, or how will my return work in a higher interest rate environment? Can I liquidate my assets quickly, or can I hold on for a "normal" return of the market? You also need to look at what you can afford and have a good understanding of your finances. Income (wages) versus outgoings (cost of
living) and in particular with property any tax implications you may attract such as extra income tax, Capital Gains tax from the Brightline test and whether you can offset interest on mortgage payments (cost of business). Understanding your financial position will help you decide if a property is the right investment for you. Talk to a financial planner if you think property is the right investment for you. Then seek out an experienced real estate salesperson, with your specific needs in regards to the right property for your investment. Rental demand in Malvern still remains very high. Our property managers are in desperate need of quality properties to meet this demand. Utilising a Property Manager not only protects your investment but also ensures you are maximising your return. Investing in a slowing market can be the right time to secure your family’s future. Talk to us now if you have an interest in finding out more. See advertisement in this issue for contact details. Tony Quayle, Property Brokers, Canterbury Regional Manager.
