Property Investment - Sailcity Holdings Ltd

Rentals / Investments of Property

Owning rental property has been a popular investment for many Kiwis over the years. Returns from property investment come from rental income and from any increase in the value of property over time - called capital gain.

Property investments are not considered to be ‘liquid’ because you can’t withdraw your investment quickly. To get money out you need to sell the property or increase the mortgage and there can be extra costs such as valuation and real-estate agent fees.

People buy investment properties to make a long-term profit as prices rise. In the short term there may be little or no profit from rent after expenses like mortgage, insurance, rates and maintenance are taken into account.

It is usually harder to borrow money for a rental property than for your own home. Some lenders may have lower lending limits for investment properties. As with ordinary home loans, lenders will look at what you can afford to repay. Some lenders and mortgage brokers have particular expertise in lending for investment.