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.
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Poll: Should employees be able to work from home?
At the post-Cabinet press conference, the National Party asserted they want public sector staff to return to the office. This has opened a conversation about other sectors in New Zealand who have adopted working from home (WFH).
Where possible, do you think employees should be able to work from home? Vote below and share your thoughts in the comments.
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70.1% Yes
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26.8% No
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3.1% Other - I'll share below
Hero
“I was born and raised in war. To be honest, those are not good memories.
I really like Iran, and I really miss it, but I couldn’t be myself there. Even though my family didn’t like my decision, I left Iran. I promised myself that I would do whatever I can for all communities, especially for the kids, so they do not have the same experience I had.
I studied software engineering in Iran and left in 2006. I went to Malaysia and stayed in Kuala Lumpur for seven years. I was admitted to Lincoln University to do my PhD here, but unfortunately, I couldn’t afford the expenses. I requested a scholarship, but they told me I had to be there for six months first. So, I stayed in Malaysia and did my PhD in network security. In December 2013, I came to New Zealand with a work visa.
It took me a while to connect with the Iranian community here. I volunteered with the Multicultural Council, SPCA, and community patrol, and I established the Christchurch Iranian Society in 2017. Before that, I started working on Radio Toranj, the only Farsi-language radio show in New Zealand.
One of the reasons I started organizing cultural events was to showcase Iranian culture. I wanted to show people that we have delicious food, colorful dresses, traditional customs, and our own instruments. My hope was to show people that we are not what you see in the media.
I am working to involve all the communities that celebrate Nowruz, the Persian New Year, in the Nowruz festival in March 2025. We want to share this celebration not only with our community but with the public as well. It’s better when it’s shared.
I remember the first time someone from Dunedin called me and asked, Hero, can you help? Something happened, and they keep declining Iranian visa applications. When I heard that, I felt insulted. We are still human, so how can they do that?
Through this journey, I’ve learned a lot. Every single day, people with different cases call me, and I try to share my knowledge and guide them as much as I can.
I have received several awards, including the Christchurch Civic Award and an Award of Recognition for my contributions to the community during the pandemic. In 2021, I established Canterbury Kia Ora Academy, a charitable trust. Through this charity, I can help other communities as well, not just the Iranian community.”
- Hero
View more stories, or nominate someone: @humansofchch
www.humansofchch.org......
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