Wider horizons

The New Zealand dream of a second home has outgrown the vision of a makeshift bach by the sea. Today, the architecture has become more assertive and the long-term rewards greater, on the recreational and the financial fronts.

New Zealanders have earned a reputation for preferring to invest in property. Where much of the western world invests 70% of their savings in diverse investment portfolios, in this country over 70% of our savings are poured back into tangible, reassuring bricks and mortar.

Westpac offers personalised options on a range of financial services to investors who are fiscally well placed, but time-poor when it comes to laying the groundwork and making the decisions required to develop a successful property investment portfolio, says the head of Westpac Private Bank, Richard Jarrett.

"Whatever step you take in the second home market, it pays to consider it in the long term," says Jarrett. "If you buy a holiday home for your family, it is an investment in lifestyle, possibly for generations to come. However, if you are purchasing with the intention to increase your capital it may be a solid option, but it will be one that evolves slowly over time."

A viable third option is to acquire a rental property for an immediate second income. Then, of course, there are combinations of all three. For example, an architectural weekend residence in Queenstown is close to the slopes for winter skiing and can be offered as rental accommodation over the summer.

"Besides the advantage of the rent ticking into your account, or dreams of escalating value down the decades, there are other benefits in acquiring a rentable property," says Jarrett. "These may include tax advantages from property-related expenses over the time it is rented. A new pool, or even a row of mature trees can help build equity time passing isn't the only factor that will help grow your nest egg."

These points are simply made but at Westpac, qualified advisers are trained to take financial property scenarios beyond the abstract into a personal response to your situation, needs and realistic expectations. All Westpac Private Bank Advisers and Westpac Investment Advisers are currently studying to become authorised Financial Advisers under the Financial Advisers Act, with the aim to be fully certified before the first of July this year.

"The training is demanding to say the least," says Jarrett. "Clients can be assured staff will bring a close understanding of the pitfalls, ambiguities and advantages of investing in a second home to the table."

Another financial point touched on by Jarrett includes the option of first paying for home improvements or additions using your Westpac hotpoints credit card and then transferring the money from your Westpac transaction or home loan account straight onto the credit card. That way, you'll earn hotpoints for every dollar you spend, which you can redeem for a range of rewards.

"In today's market there are many choices to consider from bonds to banking to bullion," says Jarrett. "However, if you align with the New Zealand psyche that bricks and mortar are a solid option, then it might pay to talk with a Westpac professional."

For further details visit your local Westpac branch or phone 0800 177 277. Alternatively, visit the website: www.westpac.co.nz.

Story by: Trendsideas