1.
Downsize your section - It's about quality, not quantity... Invest in a good neighbourhood and house, and don't go too large. The rate of return on large
backyards is usually far less favorable.
2. Use hard wearing materials - minimise maintenance costs by
choosing building materials that last.
3. Cater for the area - Different locations will attract
different types of tenants, so consider who you're trying to satisfy then
design a rental property to suit.
4. Depreciate your chattels - While changes to New Zealand law
mean you can no longer claim tax deductions on your house depreciation, you can
still claim for your chattels like drapes, ovens and heat pumps.
5. Masterbuilders Guarantee - Protect yourself from unexpected
costs, with a 10 year materials & workmanship guarantee.
6. Don't over capitalise - Smaller and cheaper houses often
provide a better percentage return (yield) than more expensive ones.
7. Avoid the extras - Additional chattels like waste disposals
won't command more rent, but they will cost you money if they break.
8. Landscape appropriately - Use hardy plants that require
little maintenance, and if your section is small enough, courtyards are better
than lawns.
9. Don't get emotional - Although it can be fun building your
own rental property, remind yourself you won't be living there. Build a house
that gives you the best financial return, period.
10. Leverage your finance - Debt is not a dirty word. Making
profit from the banks money can be very smart. Consult with a financial advisor
about your person circumstances and ask how you can use your existing equity to
build a bigger property portfolio.
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