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A steady investment opportunity

First Mortgage Trust was established 26 years ago in Tauranga and has been providingconsistent investmentreturnstotheir investors ever since. There aretwo investment funds available toinvestors, the First Mortgage Trust Group Investment Fund and theFirst Mortgage PIETrust. First MortgageTrust recently announced the funds’ latest annualised pre-tax investmentreturn of 5.59%for the September 2022 quarter. The investment funds havecontinuedtomaintaina steady performance andreturns have increasedeach quarter this year. This shows the funds’ resilienceand theFirst Mortgage Trust team’s commitmenttoprovide their investorswith peace of mind investing andconsistentreturns even during periods of uncertainty and ina challenging economic environment.

First Mortgage Managers Limited is the issuer of the First Mortgage Trust Group Investment Fund and the First Mortgage PIE Trust. Past performance is not a reliable indicator of future performance. Returns are not guaranteed. Product Disclosure Statements are available at fmt.co.nz Photo/Supplied

Creating long-term prosperity

We are the lead developerfor The Rangiuru BusinessPark, a modern, interconnected quality industrialpark in the Bay of Plenty. Quayside is the investmentcompany of the Bay of PlentyRegional Council– our mandateistocreate long-term prosperityfor theregion througha diverse portfolio that is commercially-focused andcommunity-minded. Quayside holds and manages real assets, equities, direct investments andstrategic projects. Our values speakto whowe are, whatwe doandhow we do it- Positive People, Bold Initiatives, Impactful Outcomes. Visit www.quaysideholdings.co.nz and www.rangiuru.co.nz for more information

Sort your home loan from your sofa

NewZealand’s first digital home loan platform hasarrived! IntroducingTella - a brand new home loanexperience. We’ve stripped away all the jargon,paperwork and tripstothebank and ourgoal is to make your home loanexperience simpler, faster, and more enjoyable with handycalculators,guides and onlinetools. With Tella, you can compare more than 20 NZ lenders to find a home loan that works foryou. Whether you’rebuyinga new property or refinancing,you’llbe able to sort out your home loan onlinefrom the comfort of your sofa 24/7. Tella is free to use and our qualified lending specialistsare here to support you through your home loan journey. Our new site is open for business! Check it out now!tella.co.nz

Diamonds andgoldwatches. Wearing blingcan undoubtedly bea waytoshow that you have money, but asa wealth-creationtool, it’s virtually useless. On theother hand, andexcuse the pun, investing in propertycan be an incredibly powerful, lucrativeway to build long-term wealth and securityfor your future.

While there is yettobe an investment entirely free from risk, there arecopious upsidestoinvesting in property. By investing inreal estate, youcan getstarted witha relatively small amountof money, and the investment will likely grow over time if the property increases invalue. But it’s notfor everyone. Property investment isa long-term playwhich means if you are lookingtomake a quick buck, then it’s probably not for you.

A lotof people wrongly believe that investing in property is abouttiming themarket,but it’s actually time in the marketthat’smoreimportant. Logically, given propertygenerally increases invalue over time, the longer you hold the property, the wealthier you are likelytobecome. THE RIGHTTYPEOF PLACE, THE RIGHTLOCATION: Not all properties makea good investment. Buying the righttype ofplace in the right location iskey.To generatesignificantpassive income, smart investors buywell-located properties, the type that arein continuous demand fromrenters and are closeto amenities such as schools, shoppingcentres and transport hubs. Show usa tenant who doesn’t like a new, modern,warmhouse they cancallhome.

DuVal’s property sites, while they’renot in central Auckland, are located in some ofAuckland’s highest growthareas and are closetokey transport amenities. The likelycapital gainsand positive growth trajectory for rentalreturns mean our homes are attractiveto property investors. BUYINGOFF THE PLAN: What many investors don’trealise arethecompelling benefits that come from buyinga property offthe plan before it’s even built. To startwith, the potential increase in thevalue of the property during the construction period, eventhoughit’suncapitalised,can be life-changing.Takefor example our RataTerraces development where we had some buyersexperience capitalgains of nearly $150,000 when they settled.

We know mentioning capital gain and investment property in the same sentence,can for some investors, be off-putting, especially with NewZealand’s bright-line testwhich treats capitalgainsastaxable income. But the upsidefor a new build is theexemption from this rulewhich means new buildsremainata 5-year period, not 10 years which is appliedtoproperties purchased after March 2021. So, if you investina brand-new property, and don’t sell itfor aperiod of 5years, you won’t needto pay tax on any capitalgain.

Buying offthe planmeansyouare notonly purchasinga brandnew, energy-efficienthouse, but loan-to-valueratiosfor new builds are often lower and therefore the initial depositpaidtosecure the property can also be smaller. Theother advantage is investors generally only needto pay a 20%deposit when buying a brandnew build versus the high 40% deposit which appliestoinvestors who purchase an existing house.

Addtothis, there arebenefits that come from claiming interest payments on anew build. LEVERAGE, LEVERAGE, LEVERAGE Oneofthereal advantages of property as aninvestment option isthat banks arewillingtolend youmoney using a property that youare either buyingorthat youalready own as security. Property is one of the onlyinvestments thatcan be leveraged. Infact, leverage is sucha critical part of property ownership that we oftentakeitfor granted. Where else can you borrow money from a bank, pay that loan back with money froma tenant, and keep the difference for yourself?

Then if your propertygoesup invalue you may be abletoleverage the equity it created to buy another property. And the investmentcyclecontinues and so too does your abilitytogeneratewealth.

Sogiven the choice, what would you do?Would you buya little bit of bling now, or invest in property tosecure your financial future and livea comfortable retirement? To find out morecheckout our DuVal Property Investment webinar

Disclaimer: Neither Du Val nor any of its related entities are financial advisors. The information contained in this article is not personalised financial, legal, accounting or investment advice. The information in this article has been provided solely for information purposes and is of general nature only. You should seek your own financial, legal, accounting, and other advice.

The POWER of Property

This is not personalised financial advice. Neither Du Val nor its employees are financial advisors. It is recommended you seek your own financial, legal and/or accounting advice when considering any investment.