Successful investors ask the right questions at the right time. Before you get too excited about your next investment, ask yourself these questions and make sure you're making the right investment decision.
What is my strategy for this property? Buy and hold, trading, renovating and reselling, developing, or building?
What is the expected market rent? Will any small changes grow the property's rent, value and marketability?
How much cash-flow do I want from this property?
4. If interest rates go up can I still cover the mortgage?
What is my strategy if house prices go up, down or stay the same?
How much should I allow each year for maintenance? Will the cash-flow cover this?
Do I have good tradespeople who are great to work with for when things go wrong?
Who will be interested in this property? Will the area and property features suit these tenants?
What is the return on investment?
Do I believe this property will be successful?
Do I want to manage the rental property myself, or leave it to a Wellington property manager to do all the hard work for me?
How were your answers? Do they make you feel more or less confident about the property?
If you need help deciding if an investment is the right choice for your portfolio we can provide a free, no-obligation rental appraisal with advice on the current and future market.