Meet the perfect tenant who pays like clockwork and looks after your property

Currently there is a renewed surge of interest in investing in property. This is apparent in the increase in positive articles in the media, the shortage of listings and the increase in sales. More than ever people are aware that they need to invest as our population is rapidly aging and we can't rely on the government superannuation. Below are 5 main reasons why property does make such a good investment. However what you are reliant on is having an excellent tenant. Finding a reliable tenant who is long term, pays on time and cares for your property is one of the greatest risks when investing in property. Hence at Catalyst2 we also recommend properties with a Housing New Zealand Lease. These have a guaranteed rental for up to 15 years or longer and the governments undertaking to repair any tenant damage. There are only approximately 500 of these leases available per year so I view them as rare gems, particularly leases with elderly tenants. As Housing New Zealand is the largest land lord in New Zealand they are very specific about the builders they use. So you are also assured of getting an excellent builder and a quality property.

There are many benefits in investing in property. Firstly a house is a tangible, bricks and mortar asset.

Over the medium to long term there is little doubt there will be capital growth in the residential property market. In fact, almost everything but the risk of unemployment is indicating prices are going to and in some places are already lifting: stock is increasingly in short supply, immigration is boosting demand, interest rates remain at historic lows, etc.

Property comes with an income stream - the rent. Better still, rent generally follows inflation, protecting the investor's return over time. 

There is no other investment where the finance providers will lend so much so cheaply.

Although one should never invest for tax benefits only, based on today's economics the tax benefits when combined with the rent mean that a fully debt funded investment can be cash flow neutral or even cash flow positive.

But even with these benefits many people still feel unsure about property investment and one of the main concerns is tenants. Hence the beauty of buying a property with an attached Housing New Zealand Lease. The government wishes to supplement its limited stock of state housing by leasing from the private sector new or nearly new properties (in many parts of the world this is called private public partnerships or PPP). Under the terms of this arrangement the government, through Housing New Zealand, takes a lease over the property for a term of ten years, with a right to extend for a further five years. The property is then managed by Housing New Zealand. Under the lease Housing New Zealand are required to pay rent every week, whether the property is occupied or not; to review rent annually in line with market rent and are responsible for any tenant damage. So the investor is assured of receiving rent for at least a decade, 100% occupancy and not having to chase tenants to repair damage. 

Having a Housing New Zealand lease takes much of the hassle, fear and uncertainty out of property investment. You still have to deal with an accountant once a year, but other than that, your investment will largely be looked after for you by Housing New Zealand. It is the most passive form of property investment. At Catalyst2 we particularly recommend two bedroom, free standing brick and tile homes that have been designed with elderly in mind. There is very little wear and tear on these properties and investment in retirement assets is globally recognized as one of the future investment trends.

For further details or a free consultation so that we can help you understand how as little as $50 a week would enable you to access 10 years of hassle free capital growth through property investment contact Tanya Kwasza at 0508 CATALYST 0508 228 25.