Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


New Calculator Shows Property Investors Real Costs

New Calculator Shows Property Investors How Much Their Properties Really Cost

New Zealanders love property and many dream of becoming property investors. However, many are unaware of the real costs of owning a rental property, says Opes Partners Managing Partner, Andrew Nicol.

Nicol sees renewed interest in property investment due to record low-interest rates, and the wealth that has been created by New Zealand's buoyant housing market.

According to REINZ data, the median house price in New Zealand has increased from $425,000 in June 2014 to $585,000 in June 2019. That means over 5 years, the average homeowner saw an additional $160,000 added to their net worth.

According to Nicol's analysis, that wealth could be used to secure an investment property worth up to a maximum of $800,000+.

"While mum and dad investors generally have no trouble securing the deposit for an investment property, they usually trip up when it comes to cashflow", Nicol says. "Most investors, stop, sell early or don't hold their properties long enough to get the long term benefits of owning property."

That is why considering cashflow and rental yield is so important. If investors don't understand what it costs to hold a property, then they're less likely to do so.

That is why Opes Partners has created a simple rental yield calculator to show prospective property investors what their properties will really make (or cost) them each week.

The calculator makes smart assumptions about what costs will actually be incurred by investors – as opposed to rosey assumptions that are sometimes made by novice investors.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Media: NZME 'In Discussions' To Buy Stuff

NZME confirms that it is in discussions with Stuff’s owners Nine and has put a proposal to the Government regarding a possible transaction. However, NZME notes that these discussions are preliminary... More>>

Consultation: Plan Of Action To Protect Seabirds

The draft National Plan of Action plan outlines the Government’s commitment to reducing fishing-related captures of seabirds, with clear goals and objectives, supported by an implementation plan. More>>


Housing Issues: Fairer Rules For Tenants And Landlords

The key changes include: - Limit rent increases to once every 12 months and banning the solicitation of rental bids by landlords. - Improve tenant’s security by removing a landlord’s right to use no cause terminations to end a periodic tenancy agreement... More>>


Reserve Bank: Official Cash Rate Unchanged At 1 Percent

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range... More>>


Food Prices: Avocados At Lowest Price In Almost Three Years

Avocados are at their cheapest average price since February 2017, with tomato, lettuce, and cucumber prices also falling, Stats NZ said today. More>>