Experienced investor: Takapuna & Milford

We talk to an experienced property investor about their experience in buying property in Milford and Takapuna on the North Shore.

Number of investment properties: Four

Property descriptions: Two bedroom, two bathroom, single level brick and tile units. Two of the units have an attached garage each.

Location of properties: Takapuna and Milford, North Shore

Name of Property Manager at Barfoot & Thompson: Clair Archer, Milford

When did you purchase your first property?

2002

When did you purchase your last property?

2013

Why do you invest in property?

To build capital.

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

Two properties purchased in 2002 - only because of longevity (10+ years) and the growth over that time in housing prices. They are in a sought after area and have never been without tenants.

Do you have any other investments, other than residential property?

Yes - shares and savings.

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

My philosophy is:

  • I believe the price of property doubles approximately every ten years – so anything you purchase will be worth twice as much in ten years, no matter the amount of your equity - thus creating capital gain
  • It’s like compulsory savings. You can refinance along the way and take money out while not affecting the value of your asset
  • Buy well and if you have to sell for some reason you will have no trouble.

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

  • Location - neighbourhood, amenities - transport, employment nearby
  • Sound, solid uncomplicated building that can’t be easily damaged
  • I ask myself, could I live in this property, in this location?

What value do you think property managers add?

  • Having a property manager takes the emotional involvement out of the picture, keeps it more business like
  • I don’t want to know peoples’ personal business unless it is extenuating
  • Additionally, I don’t want to be dealing with maintenance issues in my leisure time
  • Property managers should be up-to-date with current tenancy rules and regulations and rental prices
  • It is a tax deductible expense.

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

We should have started sooner!

For more information or to find out how much rent you can achieve, contact a property manager.

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