But has this option run out of steam? Well, it’s certainly bloody hard work to make a profit now.
High house prices mean the days of buying a good quality rental for $400,000 are a long-forgotten dream. Interest on loans is no longer tax deductible, and Healthy Homes requirements mean landlords must pay (sometimes hefty sums) to upgrade the heating, insulation, ventilation and so on. Interest rates are rising and banks are not as forthcoming with mortgage approvals as they once were.
Commercial property is a strong alternative – but most Kiwis think it’s out of their reach.
High-rise buildings, shopping malls, medical hubs, childcare centres and commercial offices all dwarf suburban homes but the good news is you do not have to be a multi-millionaire to own them.
At Classic Collectives Limited (an associated company) we establish private Collectives of individuals who are willing to collaborate to become joint owners of premium commercial and/or industrial property. From supermarkets in Pokeno to community shopping centres in North Canterbury, we identify high-quality buildings and bring the right mix of investors together to purchase and lease them.
Some of these investors are retirees or nearing the end of their working careers. But we’re also starting to deal with more individuals in their 30s and 40s who see the opportunity to establish a sound investment that will not only provide income, but also have growth potential.
By collaborating with other like-minded individuals, it’s entirely possible to own a share of a substantial commercial building. The benefits of our Collectives include receiving a positive yield from the get-go, and having independent professional management so there is no day-to-day workload or responsibilities involved.
So instead of driving past your rental property and noticing the grass is overgrown, take pride in knowing you own a significant multi-million dollar asset – however many stories high it might be!