Property Investment in New Zealand : Providing Security in Investment

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  • Author Treena Drinnan
  • Published August 23, 2010
  • Word count 412

Property speculation remains one of the most secure and consistently performing investments. There is simply no investment today that offers the simplicity, stability and return on investment than the real estate market. According to a recent report by Nielsen highlighting the emerging trends in real estate in the Asian and Pacific markets, investors are tending toward quality assets in more stable markets which are to be found in New Zealand, among several other locations. The report goes further to explain that increasing investment in New Zealand is a result of its relatively mature economies and its plentiful supply of high quality residential and commercial properties that represent true value to the consummate investor, whether purchasing for the first time or developing an existing investment portfolio.

There are many benefits to be had when investing in property in New Zealand, including the return on investment as the property appreciates over time, emancipating as it increases in market value. Additionally, the rental received from such investments provides a positive cash flow, which is the principal motivation of such speculation. As the market value increases, so do the rental rates. These funds can then be directed towards further expansion of your portfolio, or increasing payments can be made on the property’s mortgage to increase the equity owned, as the principle of the loan is reduced. Generating additional revenue streams is easily achievable through the purchase of additional properties.

As the world economy emerges from its most recent bout of financial crisis, the myriad of investment opportunities have come under increasing pressure to perform, while providing a level of security that satisfy the most nervous of consumers. While the stock market offers high returns on investment, it can be an unstable platform to invest large sums of money, especially for the inexperienced and first-time investor. As a result of recent financial bail-outs, the stock markets have been underperforming compared with previous years, with many investors turning to alternative options for devoting their funds. Many investment professionals are looking for a level of security which only property can now offer.

For those contemplating entering the property development market, there is no other investment that you can purchase with borrowed money. For those who don’t have the financial backing to invest hundreds of thousands into other ventures, they can still devote similar amounts into the property market through brokerage or borrowing from many financial institutions who are again encouraging the investment in residential and commercial property.

CENTURY 21 New Zealand Real Estate is a wholly owned New Zealand company with over 60 independently owned and operated offices and 350 sales associates. CENTURY 21 specializes in real estate, whether it's residential, rural, business broking, commercial, rentals and property investment in New Zealand.

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