Young families who are looking to make a splash in the property market are making a wise move. Owning a home in New Zealand remains one of the safest investment decisions available. While other stocks and commodities rise and fall in value, good old fashion bricks and mortar offers the type of stability that couples really do require.
For those in their 20s and 30s who are on this excursion, there will be no shortage of advice and talking points that they can access as clients. Although some practices have changed over time with fluctuations in community behaviours, there are certain principles that have proven to be successful.
Half of the challenge with young families in New Zealand is identifying a local area where the property value will increase over time. Although it is hard to pinpoint regions where values are depreciating, conveyance specialists and real estate agents will be in a position to track valuations over the span of years and decades. What are the local services and amenities like in the community? Are the shopping centres, schools and sports fields up to code? Is there a public transport infrastructure? Is the population increasing or decreasing and if so, what is the cause?
Establishing a budget is a key parameter for young families to recognise. This is essential given the discussions that will be had with banks regarding mortgage agreements and real estate agents who will be vying for commission. Allowing a $500,000 budget to suddenly blow out to a $750,000 investment will only grow the level of debt and burden for young New Zealand couples who want to be savvy about their long-term choice. By coming together to define a financial figure, the rest of the decision making process is made on the margins.
Certified inspections should be part and parcel of any property investment strategy that young families embark on. There will be agents and conveyance firms who will have the right connections in this department, but it is essential to ensure that the property is up to code. If there is any issues with the infrastructure that could pose a health and safety hazard, not to mention a costly figure to manage the redevelopment project, then they have to be red flagged and made official as soon as possible. That will help to ward off a poor deal or to assist with insurance measures down the line.
Taking stock of the ongoing costs is a domain that young families have to appreciate as they invest in this endeavour. It could be the repair and maintenance of a hot water system, a roofing appliance, a staircase, garage door mechanism or another asset that has to be paid for over the span of months and years.
Although emotion can be a major factor for young families looking around the local New Zealand market, it is paramount to think about this project as strategically as possible. There could be family history with the location or some degree of sentimental value that makes the home feel too good to be true. However, if it falls short on these other markers that have been discussed, then that sentimentality won’t offer the type of long-term value that homeowners are craving.
Consulting with industry experts can allow young families to canvas opinion from those professionals who study the market with meticulous detail. They do not have to dictate the path of the investment for local clients in New Zealand, but they will provide context for the decision making process given the information that they have obtained. This exciting adventure is not quite an exact science given the external factors at play, but their guidance can really offer peace of mind.