Toni Heath, BDM for Auckland Property Management went along on a property tour for investors held by Asset Consultants. Find out what she learnt below!
Photos courtesy of Toni Heath.
I was fortunate to have been invited to attend a mini Property Tour held by Asset Consultants on Sunday 31st March 2019. The tour was led by Roy Adams, Property Wealth Consultant at Asset Consultants Ltd, they help people change their lives through property investment and assist first home buyers in purchasing their first home.
The purpose of these property tours (which are held on the last Sunday of every month) is to educate attendees about property investment and show both current and potential investors examples of properties where renovations and other methods have been engaged to improve equity and cash flow. In some instances, Roy uses a poorly executed plan to show the pitfalls of improper planning and not utilising the services of an expert in this area.
During the tour we had a look at a unit that was currently for sale in Mt Wellington at a heavily reduced price. It was located in an older complex and required minor cosmetic renovations to bring it up to standard. This two bedroom unit had the potential of being a great rental for an investor but it was noted that this particular property was better suited for an investor that was looking to expand his portfolio of properties, rather than for a first time investor.
The reason for this was that the unit had no real capacity for increasing equity through renovation, therefore it would “lock in” the deposit, and restrict further development of the portfolio – something for first time investors to consider when choosing their first property to buy. It was also noted that the pedestrian entrance to the unit from the car park was not ideal, and that the complex was situated in close proximity to nearby high-voltage power lines, not an ideal option for prospective tenants.
There was about 10 of us on the tour so it offered an intimate conversation around property investment. We had an informative discussion about the latest changes in regulations pertaining to tenancies, best practices, and ways to avoid potential investment pitfalls. Roy then also gave us an overview of the current lending environment, the different products that are available in the market, lending criteria, and interest rates. When we viewed different suburbs, Roy highlighted the developments that are planned for that suburb in the medium to long term, and explained how these are likely to affect the properties in that location, these are important things to consider so investors can plan their next purchase.
Open homes help you get an indication of how lucrative the sales market is currently. At both of the open homes we attended it was noted that the rent appraisals used by sales agents as an incentive to potential investors were unrealistic, highlighting the need for an investor to obtain their own rent appraisals from an independent source as part of their due diligence.
Overall it was a wonderfully informative day, something i would highly recommend to any potential or current investor to get a little insight into the property investment industry.
Asset Consultants hold property tours around different Auckland suburbs on the last Sunday of every month. Contact me on [email protected] to register for the next outing.