Commercial Property Investment in New Zealand

Property investment has been a particularly hyped-up investment opportunity. Before you go ahead and invest in property in New Zealand, or elsewhere, it's important that you feel comfortable with the level of risk and return. Many people make money through property investment, but it may not be for everybody. 

Investing in commercial property generally requires a lot more equity than residential property investment, and interest rates on any mortgage you take out are higher. Tenants usually stay for longer terms, but economic downturn can leave an office building vacant for long periods. 

With the increased risk comes the potential for higher returns, but again this type of investment requires extensive research. Talk to real estate agents experienced in selling investment properties and consider: 

• What locations you want
  
• What facilities it should have (parking, lighting, garaging etc)
• What type of tenants you want
• When you're viewing properties, keep in the back of your mind questions like, "Could I live here?" and "Would I want to work here?"

If the answers are yes, do more homework and find out whether you feel happy taking the investment opportunity further.

This article was supplied by Broadbase International Ltd (www.broadbaseinternational.com). Information contained in this article is of a general nature and is not intended as a substitute for professional advice based on your individual circumstances. Disclosure statements are available on request and free of charge.