Investing Guide

Investing in property can be a lucrative game if you get the details right and the market dynamics at the time suit what you are trying to achieve. Just because you are investing in bricks and mortar doesn't mean there is no risk - do your homework, an uninformed property investor is gambling not investing.


1. What you want to achieve

By deciding what you want to achieve, you will have a better idea of how to tailor your plan going forward.
Things to think about include:

Do you want to buy a rundown place, do it up and flick it on relatively quickly?

Or do you want to invest in properties to then rent out and hold onto waiting for capital growth (a value increase over time)?

Do you want to invest in commercial or residential property.

2. Know the market

Understanding the market will mean you can get an idea of what you should be paying and whether you are likely to get yourself a bargain or if will be paying above market value – each of which can affect your gross yield or end profit. You will need to consider also which suburbs are the best to invest in. You can find a range of stats on different suburbs across the country as well as how the market is trending in Property Trends. Look up individual properties in the area, check out what they are selling for, look at the E-Valuer trends for both individual properties and the suburb, check out the market rents - spend that extra time to understand what is happening in the market.

3. Do the math

Depending on your aim, you will need to do the math to figure out what makes financial sense. If you are renovating to sell for a profit for example, you will need to factor in the purchase price, how much renovations will cost, how much you are likely to sell for, and of course any fees whilst you own the property such as real estate agency fees, mortgage repayments, rates etc.

If you are looking to rent the property, then you will need to consider how much all the bills add to, including mortgage repayments, rates, body corporate fees if applicable, insurance, legal costs for tenancy contracts etc, and then see if you make any profit after receiving a reasonable market rental income. You can get a gauge for rental prices by looking at our Rental Analysis info . You can of course be interested in capital gains from market movement, but you still need to make sure you aren’t making a loss whilst you own the property.

4. Know the risks

As with everything, there are associated risks. You will need to talk to the banks and get advice on things like mortgage options, interest rates, how much you will need as a deposit and how much they are willing to lend. With simple things like increased interest rates, you may see your profit reduced.

If you are renovating you don’t want to get caught short if your costs start racking up, or if they get delayed. You need to be sure you can cover the costs and that you have contingencies. The same with having tenants – you need to be able to cover the costs if it’s untenanted, and you have contingency funds if the property needs repairs and maintenance.

Understand the rules. Whether you decide to do-up a property or rent it out there are rules in place that you will need to know and adhere to. For renovations, you may need council consent for certain projects for example, whilst when tenanting there are different rules around collecting and lodging bonds from your tenants, contract obligations, and rules on being a landlord.

5. Understand the rules

Whether you decide to do-up a property or rent it out there are rules in place that you will need to know and adhere to. For renovations, you may need council consent for certain projects for example, whilst when tenanting there are different rules around collecting and lodging bonds from your tenants, contract obligations, and rules on being a landlord.

Latest News & Articles

Image source: She Said Yes
Ah life milestones. If you’re on the traditional journey - a wedding and buying your first home are two of the big ones. It’s surprising how many people face these two major life events within a short space of time. So how do they do it? How on earth do they save for both a house and a wedding at the same time? 
According to Megan Hutchison of She Said Yes, the figure most mentioned for NZ’s ‘average’ wedding cost is $35,000. But she’s also written an article about why that figure is so misleading, and states that the median wedding cost in NZ is likely to be a lower $20,000. 
What does $20,000 get you in terms of a first step on the property ladder? According to CoreLogic NZ Head of Research, Nick Goodall:  “As a 20% deposit, it won’t get you much. But First Home Buyers can add KiwiSaver and depending on criteria, people could qualify for Kiwisaver grant too”. So it’s a good start…if you live in an affordable areas of NZ that is. Auckland? Not so much.  “A first home buyer in Auckland in the ‘couples with two incomes and no kids yet’ category? You’re looking at $800,000+ housing spend” $20K is that scenario is more like a stubbed toe as opposed to a big step. 
Hutchison does note however that the wedding budget varies hugely according to location, guest list size, catering and style.  “Don’t lose sight of what the day is really about.  Try not to get swept up in all the things you could spend money on, but rather focus on what’s really personal and important to you. Your future self (and honeymoon budget) will thank you for it”.
And just like house purchases, wedding funding is increasingly becoming a family affair. Traditionally it always was squarely in the hands of the bride’s family, but it became the couple’s responsibility in more modern times. Rising housing costs and lifestyle pressures have seen it rebound again. Mum and Dad are back in the wedding financing game. 
“Many parents still choose to financially support their children’s weddings. My advice is to sit down and have a conversation with each of yours as early as possible. This is also the key time to discuss with them what and how they will be helping. Make sure you both understand how much they can give you, whether it’s a loan, advance on inheritance, or a gift, and what they expect in return (e.g. inviting their friends as guests, religious or cultural elements, control over details such as invitations, etc)”. 
Poor parentals. They’re in the First Home Buyers game too! Ask any First Home Buyer and they’ll report of lining up at Open Homes with queues of others - many with their parents attending as the ‘enablers’. It’s so common place that major banks have mortgage products in place for this exact scenario and legal advice for parents helping their ‘children’  into home ownership has reached mainstream news. 
Don’t have the luxury of parental funding for your wedding and home?  The great news is that you’ll be starting your married home-owner lives together as super-budgeteers, skilled at facing reality and still making your projects happen. 
And it’s not all doom and gloom. Hutchison has some excellent advice on how to achieve the wedding you want but in the budget you have, and with regards to first home buying, this video is hot off the press and definitely worth checking out to understand the financial market forces at play right now. The supporting article explains how to avoid some first home-buyer traps to avoid too. This is a great resource to face your own personal home financing facts and lastly - here’s a great explanation of reports available once you’ve found “the one” (the house, not the spouse: if only they came with reports too. Joking. Sort of). 

Annual rental growth stabilised at 4.9% in December and January, illustrating a similar trend to value growth after both bottomed out in October 2017.

Gross rental yield continues to hover along just over 3.0% (as it has done for 18 months+).

Christchurch rent continues to drop, although the rate of -2.8% is not as great as the drop witnessed through most of the second half of 2017.

Meanwhile the growth in median rent in Dunedin is now trending downwards after peaking at greater than 10% growth in the middle of 2017. Tauranga’s annual rent increase of 12.1% is slightly misleading because it’s being compared to an anomaly of a month last January. Actual annual change in Tauranga is realistically closer to 7%, which is still rather high – similar to Wellington (7.6%), where we’ve seen and heard plenty about the rental squeeze in the nation’s capital.

Source: CoreLogic NZ


Trend Report: Modern Bohemian

Tuesday, 20 March 2018

It’s so easy to become caught up in waves of trends as they sweep through homes across the country, contagious almost, until every one of your friends has a ‘one of a kind’, hand carved ornament from India, but before you turn away - after all, no one likes a cliche - there are so many ways you can take a trend and make it your own. When you hear the word bohemian, you think quintessential Bali and you see a woman swirling around her house in a crazily patterned dress, with a head scarf, smelling of potpourri, this is not the life you imagined for yourself. But moderation in most things can bring a reinvigorated perspective and this is no different in your home. Modern bohemian is the idyllic balance between luxe and bohemian and elevates the bohemian trend to one worth exploring.

You can begin by breaking the trend down into bite sized pieces.What is at the core of this style? Where was it influenced by? Where did it begin? I would always start with deconstructing the colour base and see where that takes you. Bohemian lends itself to earthy tones, clay, burnt orange, coffee, so look around your home, is there anywhere you can incorporate that base? Your dining room might be crying out for some warmth, you just need to decide how you integrate those tones and you can do this without even touching the colour of the walls. To keep it feeling fresh, pair your earthy touches with shiny gold or rose gold decor features to add a luxury to the space.

Texture is the next key element you can revisit. Natural fibres are iconic to the bohemian trend, in rugs, cushions and furnishings, whether it’s raffia, woven fibres or wood, you can find these appearing in so many categories - in fact you may even have some already, it’s just about making them shine. Merging both bohemian and modern elements you can take the opportunity to bring in a contemporary feature. Try raw linen as your natural texture, a white linen couch, with a burnt orange throw and a raffia rug, now that is modern bohemian at it’s best!

There is no need to buy into a trend that you don’t feel is truly you, but some are long lasting. Almost all trends can be pulled a part to marry with your personal style. Whether you change the colour or texture, carefully pairing back with a modern base will elevate this to create a space that is timeless.

Rosalie Molloy

Creative Director

Posted: 20 March 2018

One of life's most simple pleasures is climbing into fresh, crisp sheets after your daily hustle. It is a small luxury that resonates across people and place. It is a part of the allure of a beautiful hotel, and the most luxurious of experiences pale in comparison because this is completely and utterly accessible, every day of the week.

There is no reason you can’t bring that hotel feel into your home and the small touches of luxury will make your bedroom your sanctuary. Whether you are after a silkiness that is reminiscent of royalty or your taste is tittering towards the clarity of raw linen, far beyond colour variations, there are countless options to try and test. However if 1000 thread count means nothing to you (can someone please explain what this actually means?!) then I have invented a scale you can truly get behind.


Rating: 6/10 Softness

Timeless and classic, cotton bedding is the old faithful, never fail bed linen. With comfort and stability on its side, it’s hard to look elsewhere. This blend has stood the test of time. Take this ranking as an average across thread counts, although comfortable, and consistent, there is no oooh and ahhh at the touch and feel.


Rating: 7.5/10 softness

Linen blend has a rawness to it, that adds texture and structure. I’m talking beautifully crisp, if that is what appeals to you. Linen wears spectacularly over time and the more it is used, washed and slept on, the softer it becomes. Like your favourite pair of sneakers, this just gets better the more you use it. You can pick up this combination in an array of awe-inspiring colours (the tobacco is something special) at In Bed Store.


Rating: 9/10 softness

Brought to my attention by the wonderful team at The Beach People, eucalyptus blend (approximately 65% eucalyptus) marries natural fibres to create a linen that emulates silk in both look and feel (very, VERY soft!). Hypoallergenic for all your sensitivities, but the major selling point of this style of bedding is it’s breathability, the beauty of the blend is that it is almost completely undisturbed by temperature fluctuations, which is missing from other fabrics that rank similarly on the very professional and completely legitimate ‘softness scale’.

Whatever your preference I strongly recommend trialling as many styles as you can. You have explicit permission to spend obscene amounts of time and energy resting your head on as many different types of linen as you can, after all, a good nights sleep is priceless!

Rosalie Molloy

Creative Director

Posted: 20 March 2018

Prepare For Everything to Snowball

This may have started out as a low-key, few minor updates here and there, but once the work has started it will be so very tempting to continue with other renovations. While your space is a worksite already it will be all the more enticing to just paint the walls as well, when all you had intended was a fresh coat on the doors. You’ll find yourself knee deep in gyprock one day, look up and wonder how you got here - whoops!

There Will Be Unexpected Costs

You might be an excel genius and have prepared the most analytical budget in history but once you start knocking walls down and pulling up flooring, you find problems you didn’t anticipate. Whether that is a leaking tap that has rotted away some of the framework or something that has been wired where it shouldn’t be, there will absolutely be issues you’ll need to address, and more often than not, that will include a tradesman coming to assess the issue (cha-ching!).

and with that…

Timing is Unpredictable

Always, always leave yourself a buffer to wriggle with. If you’re using external trades, it’s important to allow time on either side for unexpected delays. This can be affected by elements that are completely out of your control (hello rain!) but what will be in your control is the time lines you set for yourself. This will save you sweating down the track.

You Will Need Work Gear

So perhaps you can get away with revisiting the oldest gym gear you own but at the very least invest in protective gear. Get yourself a pair of glasses (protective work glasses, this is not an excuse to update your Gucci frames!) and gloves. I strongly recommend some level of sturdy shoes. Sneakers, however comfortable will not suffice when you drop a chunk of old tiles on your foot - regrettably I can confirm this from personal experience - safe to say, steel cap boots will become your best friend.

Details Are Everything

A millimetre can be the difference between your brand new fridge fitting into the cupboard you spent days building for it, or not, the details are critical! This reaches beyond simply measurements though, it’s important to test and check as much as you can before you go full steam ahead. Get some floor samples before you buy, bring them in and test the colouring at different times during the day to see how it changes with the light. Do the same with paint, if you can allow time to test some different tones then this not only puts your mind at ease but saves you a follow up trip to Bunnings when you decide you hate the paint you’ve covered half your walls in.  

Rosalie Molloy

Creative Director