Tips for buying an investment

Kesh Maharaj, a chartered accountant gave up his large six figure salary at a multinational corporation seven years ago and focused on building up his property portfolio. He now has a multi million dollar 30+ property portfolio. Which consists of properties in areas of Auckland which some would have laughed at ten years ago. The same properties now give him an income which has replaced his salary from his full time job and allows him to spend his time as he wishes. This is great for man who is still in his early 40s.

From what we know of Kesh he has achieved this by adopting a win win strategy. We are proud of having him as a client and today he shares with us some tips for buying.

  • Know your investing area intrinsically Have a close look at which are the good streets and the placement of railway tracks, public transport, shopping. Also check out future development plans in the area, private and in terms of infrastructure. This can change property values for whole suburbs over time.
  • Fall in love with the deal and not the house when buying an investment. Try and look at the potential numbers after a tidy up or renovations as well, this can be where you can add value and apart from getting happier tenants, the higher rents can make economic sense.
  • Leverage your power team Keep a good mentor, lawyer, mortgage broker, real estate agent and building inspector close by, this can save you from getting stuck with a lemon
  • Understand return on investment calculations, look at the numbers and decide what you are comfortable with, sometimes you will find that over the medium term; a better capital gain can be had with a lower rental return. Some areas and types of properties will lean further towards a capital gain return and further from a rental return.

Kesh is going to be speaking on  a Saturday 6 October at the Ellerslie Events Centre, on How to Profit from The Current Property Market along with David Whitburn, President of the Auckland Property Investors’ Association, professional property investor, lawyer, monthly columnist of the New Zealand Property Investor Magazine. The presentation has a nominal cost of $39.95, follow the link to book.