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Property Ventures Say New Year the Time to Set Goals

Friday 19 January 2018, 2:53PM

By Beckie Wright

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Something we should all regularly do is to have a quiet time to reflect, set goals and track how they are doing. However, many of us are (or think we are) too busy to do this or just don't get around to it. This is where the Christmas break, or, in fact early in the New Year when you are either at the beach or just finally having some quiet time on your own to sit back and look at new goals, is a good time to make a plan on how to achieve them for the upcoming year

Mark Honeybone from Property Ventures offers some property strategies ideas and goals you may want to look at in 2018, and the most important is to focus on paying down your debt. This creates less risk and greater equity; also the less debt you have, the greater your cashflow will be in your overall portfolio. This is also a good time to create equity by renovating, creating more rooms in a house, subdividing or many other methods.

If you are self-employed or your income isn’t that great, it becomes even more important to think about creating cashflow to help with servicing debt.

There are ‘room by room’ deals where you could do this, or maybe buy a backpackers’ or boarding house. The other way is to create your own cashflow by adding bedrooms, a sleep-out, a minor dwelling, or renovating a property.

Mark says, “I know many investors who only buy new builds and take the advantages those provide: chattel depreciation, less maintenance and if brought well may get some capital growth during planning and construction stages.”

Similarly, having a good long-term lease usually comes with fewer tenant issues. Because commercial valuations are done on the lease that you have in place, you can create equity in a commercial building by buying something that has a bad lease like a short period left to run, unfavourable terms or others. Then by re-doing the lease for a longer term and where the tenants are paying most of the outgoings, you can increase the yield

Mark advises, “If you’re a new investor, then start putting money aside for future opportunities. If you’re an experienced investor get your property(s) re-financed with new valuations, so you are in a good cash position to take advantage of any opportunities that come up in the market over the next couple years. Have your pre-approvals in place. The more you are organised, the better deal you will buy when the opportunity is presented to you. The above are just a few ideas to help your portfolio or goals in 2018. Ideally, you should know your plan of action by the end of January 2018, so you are clear on what to do during the year.  Setting clear goals gives you a higher chance of achieving them.”

For more information on property investments, selling property and buying property in Auckland please go to http://www.propertyventures.co.nz .