Police News August 09.indd - New Zealand Police Association

New Zealand Police AssociationHome buying hints fromThe National BankIs this a good time to be thinking abouta rental property?Buying a rental property has traditionally been one of New Zealanders’favourite ways to invest their money and provide for their retirement.With house prices having taken a bit of a battering over the last12-18 months, many investors have had a hard time of it.With most commentators predictingthat capital gains from growth in houseprices over the next few years will bemodest at best, what is the outlook forproperty investment?Capital gain is just one part of theproperty investment story. The other isrental yield – and there are signs thatthis may be an increasingly positivefactor.Rental yield is basically the return onyour investment – your rental incomeminus your costs (such as home loanrepayments, maintenance, and so on).With interest rates and house pricesboth lower than in recent years, andrents rising in many areas, rental yieldsare increasing.In fact, according to a recent reportreleased by QV.co.nz, cashfl owpositive properties are becomingincreasingly common. These areinvestment properties where yourrental income is greater than yourcosts. In the past many investors werehappy to record an annual loss on theirproperty, because rising house pricesmore than made up for it.According to QV.co.nz, rising rents andfalling mortgage repayments mean it’snow increasingly possible to fi nd rentalproperties that return a profi t. Theyhave identifi ed a list of suburbs, whichare likely to return a positive net cashfl ow (based on average rents, costsand house prices). You can fi nd thefull article at the QV.co.nz KnowledgeCentre.While the big capital gains of recentyears are unlikely to be seen for sometime, property investment may bestarting to come back into favour. If youare seeking a solid return backed up bythe security of bricks and mortar, it maybe worth considering for your situation.A free, one-stop resourcefor residential propertyinvestmentIf you’re thinking about buying aninvestment property, check out ourunique Home Buyers Centre (www.homebuyerscentre.co.nz) fi rst. It’sa comprehensive online resource foranything to do with buying or sellinga home or investment property, andit includes a separate section oninvesting.At the Home Buyers Centre you’ll fi ndinformation, tools and resources onevery aspect of residential propertyinvesting, from how to finance aproperty, to the pros and cons ofdifferent ownership structures, tofi nancing, to understanding the taxissues through to managing yourtenants. It’s invaluable – and it’sabsolutely free.The Police Home LoanPackage and rental propertiesDon’t forget you may be able to takeadvantage of the special Police HomeLoan package if you’re thinking aboutpurchasing a rental property. If you’dlike more information, contact a MobileMortgage Manager or call us on0800 800 808 or come into your localbranch.08-2009OUR LENDING CRITERIA, TERMS, CONDITIONS AND FEES APPLY. A COPY OF OUR DISCLOSURE STATEMENT MAY BE OB-TAINED THROUGH ANY BRANCH OF THE NATIONAL BANK OF NEW ZEALAND (PART OF ANZ NATIONAL BANK LIMITED). WHEREBORROWING OVER 75% OF A RESIDENTIAL INVESTMENT PROPERTY’S VALUE IS APPROVED, A LOW EQUITY PREMIUM ONA GRADUATED SCALE WILL APPLY AND A REGISTERED VALUER’S REPORT IS REQUIRED. THIS MATERIAL IS PROVIDED AS ACOMPLIMENTARY SERVICE OF THE NATIONAL BANK. IT IS PREPARED BASED ON INFORMATION AND SOURCES THE BANKBELIEVES TO BE RELIABLE. ITS CONTENT IS FOR INFORMATION ONLY, IS SUBJECT TO CHANGE AND IS NOT A SUBSTITUTEFOR COMMERCIAL JUDGEMENT OR PROFESSIONAL ADVICE, WHICH SHOULD BE SOUGHT PRIOR TO ENTERING INTO ANYTRANSACTIONS. TO THE EXTENT PERMITTED BY LAW THE NATIONAL BANK DISCLAIMS LIABILITY OR RESPONSIBILITY TO ANYPERSON FOR ANY DIRECT OR INDIRECT LOSS OR DAMAGE THAT MAY RESULT FROM ANY ACT OR OMISSION BY ANY PERSONIN RELATION TO THE MATERIAL.August 2009181