Experienced investor: Sanjay

Sanjay, one of our overseas-based landlords, shares his insights learned from his property investment journey thus far. 

Number of investment properties: 3

Property descriptions: 1 x one bedroom unit, 1 x two bedroom apartment and 1 x two bedroom house. 

Location of properties: Mt Eden, Mt Roskill, and New Lynn.  

Name of Property Manager at Barfoot & Thompson: Amanda Ball, Mt Roskill branch.

Would you like to take part in our investor interviews? Email syu@barfoot.co.nz.

When did you purchase your first property?

September 2002

When did you purchase your last property?

March 2014

Why do you invest in property?

I invest in property for several reasons:

  1. It is a secured investment, provided the title is clear. 
  2. It provides good appreciation over a mid- to long-term period. 
  3. It provides regular rental income which more or less covers the mortgage, reducing the burden.
  4. There is no need to keep regular watch or make immediate decisions such as with shares, gold etc. This gives me freedom to focus on my regular activities. 
  5. It provides much better returns than bank fixed deposits.
  6. Being able to physically see and touch this form of investment gives me psychological security and satisfaction.
  7. It provides short-notice accommodation options for myself and my family if required.
  8. In an emergency, I am able to mortgage the property to raise funds. 

Which one has been the most successful investment, and what has made it successful?

My investment property in Mt Eden has been the most successful due to its fantastic location. It is one stage to the CBD, within the Auckland Grammar Zone, and the neighbourhood is fantastic with lots of shops and restaurants close by. 

Do you have any other investments other than residential property?

No. All of my investments are residential properties. 

Do you have a specific philosophy for property investment (or investment overall) that you follow?

No one specific philosophy. As an entrepreneur, I have over 35 years of business experience which I apply to my property investment strategy. 

What are the key things you look for when investing in property?

As previously mentioned, I strongly believe that the location is the most important. An area with good public transportation links, good school zoning, nice neighbouring families, the condition of the property, and last (but not least) the price of the property. 

Do you use a property manager for all of your investments?

Yes. I use Barfoot & Thompson and have found their services to be professional and satisfactory. I live overseas so it's great knowing that my investments in New Zealand are being well taken care of. 

What is the most important lesson you have learned during your property investment journey?

I have learned several lessons in my journey thus far. Property investment is a long term activity and requires good patience. As it has very low liquidity, one cannot sell it in a short period of time. The property's title must be totally clear, and it's important to buy in a good location. I believe that if you follow these rules, anyone can fetch good returns over a mid- to long-term period. 

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