Important calculations when looking to invest...
When choosing to make a property investment, the most important thing you can do is to approach the transaction
as a business decision.
You are not buying a home - which is an emotional purchase, and as much about listening to your heart as to your head. The property investment dream is to secure a high yield property in an area which will ultimately allow you to make good capital gains.
Therefore one of the most important calculations you will need to make is what the yield of a particular property will be. Yield is simply the rent a property could earn over a year, expressed as a percentage of the purchase price: Example, a $350,000 property rented at $350 a week will return a gross rental yield of 5.2%.
You can then use this figure to compare the returns you could get from a property against those provided by other types of investments, such as shares or bank deposits.
Whilst the gross rental yield is a simple calculation to use it's important to note that it doesn't take expenses into account. A property may have a high rental yield but may also have high expenses, making the rental return low when taken into consideration.
If you do want to want a more precise calculation you will need to know (or estimate) the total expenses of property including both purchasing and transaction costs (legal fees, building inspections, any start up loan fees, etc.) and annual costs such as vacancy costs (lost rent and advertising), repairs and maintenance, property management fees, home and contents insurance, rates etc.
As a general rule of thumb, cheaper houses will achieve better yields than more expensive properties.
Knowing all the extra costs can be daunting, however a Harcourts Twiss-Keir property manager can put you in touch with finance and tax specialists for assistance when deciding on an investment property.
Poll: If we want to reduce speeding, what do you think actually changes driver behaviour? 🛻🚨🚓
In the Post's article on speeding penalties, the question is asked whether speeding fines are truly about road safety, or are they just a way to boost revenue for the Crown?
What do you think? Should speeding motorists receive speeding fines or demerit points?
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36.5% The sting of a fine (Money talks!)
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63.5% The threat of demerit points (Nobody wants to lose their license!)
Scam Alert: Bank cold calls
ASB is warning customers about reports of cold calls from scammers claiming to be from ASB. These scammers are trying to obtain personal information, including usernames, dates of birth, and verification codes sent to your mobile phone.
🛡️ The "Caller Check" Test
If you get a call from someone claiming to be from ASB and you’re unsure, just ask them for a Caller Check. You will then be able to verify the call through the app.
Remember, banks will:
❌ Never ask for your banking passwords, PINs, or verification codes
❌ Never need to know your full credit card number – especially the CVC
❌ Never ask you to download software or remotely access your device
❌ Never ask you to purchase gift cards or transfer funds.
If you have received a phone call and think your account has been compromised, call ASB on 0800 ASB FRAUD (0800 272 372), or visit your local branch.
Some Choice News!
DOC is rolling out a new tool to help figure out what to tackle first when it comes to protecting our threatened species and the things putting them at risk.
Why does this matter? As Nikki Macdonald from The Post points out, we’re a country with around 4,400 threatened species. With limited time and funding, conservation has always meant making tough calls about what gets attention first.
For the first time, DOC has put real numbers around what it would take to do everything needed to properly safeguard our unique natural environment. The new BioInvest tool shows the scale of the challenge: 310,177 actions across 28,007 sites.
Now that we can see the full picture, it brings the big question into focus: how much do we, as Kiwis, truly value protecting nature — and what are we prepared to invest to make it happen?
We hope this brings a smile!
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