Experienced investor: Mt Wellington

An experienced investor from Mt Wellington shares his tips on his property investment success.

Number of investment properties: Five

Property descriptions: All of my properties are two bedroom units. 

Location of properties: Mt Wellington.

Name of Property Manager at Barfoot & Thompson: Shelley Erceg, Epsom

Want to take part in our investor interviews? Email syu@barfoot.co.nz

When did you purchase your first property?

November 2011

When did you purchase your last property?

July 2016

Why do you invest in property?

My primary goal was to become financially free so that my family will be looked after for years to come. When I looked at the options, I found that property investment is slow to build, with huge potential to grow at a steady pace depending on my risk appetite. 

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

Success is different for every individual. For me, if I am able to buy a property and hold it long-term, then it is a good investment. Therefore, I feel that my entire portfolio has been successful. I think factors such as the location, the type of property and the prices I paid have made it successful. 

Do you have any other investments other than residential property?

I have a little bit invested in shares.

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

Buy and hold long term. I have always looked at properties in Central Auckland. One and two bedroom units are easy to rent and are in demand in any kind of economic situation as they are affordable for tenants. Do the necessary renovations to make it more attractive for your tenants (new kitchen, bathroom, heat pump, HRV, insulation etc). It doesn't need to be costly.  

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

Location (proximity to transport and shops), 1-2 bedroom units. I do my figures based on a 6%-7% interest rate instead of 4% or 9%. If the figures work, then I will buy it - no emotional buying.

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

Yes. It's a no brainer as I work full time. They do a wonderful job of inspecting the properties regularly and look after the tenants as I would. I don't need to think about whether the tenants have paid the rent or if I have the right tenants. The cost of property management is nothing compared to the peace of mind I get for that price.  

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

I have been learning all the way through my journey. One of the earlier lessons I learned was to get properties managed by someone else so that I don't need to worry about it. Always listen, talk to like-minded people and look for opportunities. There is a 'bargain of the century' deal every day.

Not subscribed to our landlords' newsletter, The Property Management Insider? Sign up now