Property Investment
7 min read
Author: Laine Moger
Journalist and Property Educator, holds a Bachelor of Communication (Honours) from Massey University.
Reviewed by: Ed McKnight
Our Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.
If you want to buy a New Build as an investment property, you have 3 options.
You can:
Here at Opes Partners, we are an example of a property investment company. And even though we have been around for 10 years, people still ask: “What does Opes actually do?”
Because most property investors are familiar with the first two options, in this article you’ll learn
a) What a property investment company does
b) The differences between a property investment company and your other options, and
c) If using one is the right fit for your situation.
Do you have a question or comment about property investment companies? Feel free to leave your thoughts in the comment section at the end of the page.
In one sentence: a property investment company helps people find the right investment properties for their financial situation.
Opes Partners is one example of a property investment company, but there are others. For instance, Propeller Property Investments, Positive Real Estate, and iFind Property, but there are others too.
These types of companies tend to focus on New Build, off-the-plan investments, although this isn’t always the case.
Often (but not always) these companies:
Working with a property investment company means that all property purchases support your financial goals.
It also reduces risk, because they are guiding you through the property investment process, so all the i’s are dotted and the t’s crossed.
Many investors who focus on New Builds wonder: “Why would I use a property investment company? Why not go to a developer, or a real estate agent directly?”
This is a great question and an important one.
Of course, you don’t have to use a property investment company. And the truth is they aren’t always the right answer for everyone.
Here are three alternatives to compare – developer vs real estate agent vs property investment company.
First, you have a property investment company. The main difference between this and the other options is that you will work with a financial adviser as your main point of contact.
People who choose to use a property investment company do so because:
However, there are also cons:
For starters, you can approach a developer directly about a property you like. You can do this via their websites or potentially find them on Trade Me.
The main difference between this and the other options is that you will work with a sales person who works for the developer as your main point of contact.
This has its pros and cons.
People who choose to go direct to a developer do so because:
However, this is not without its cons:
Your second option is to buy a New Build property through a real estate agent. They will represent properties that developers are currently selling.
The main difference between this and the other options is that you will work with a real estate agent as your main point of contact.
This also has its pros and cons.
People who choose to go with real estate agents do so because:
Again, this is not without its cons:
Generally speaking, the steps you take with each property investment company will be similar.
Over several meetings they will:
For more detail on what it’s like to work with a property investment company, read this article: What Happens When I Work With Opes Partners?
The primary way a property investment company gets paid is by charging the developer a fee.
So, if one of their financial advisers recommends a property, and you think it’s a good investment, they will get paid a fee by the developer.
Some property investment companies also charge different amounts, depending on what sort of service you get.
Here is an example of the different types of fees you can expect:
The people who get the most value from working with a property investment company are usually:
But, this may not be you. If you are an experienced investor and prefer to seek out properties yourself, then working with a property investment company may not be the right fit for you.
The main takeaway here is if you are looking for a bit of investment expertise – a property investment company could be the right fit for you.
Write your questions or thoughts in the comments section below.
Journalist and Property Educator, holds a Bachelor of Communication (Honours) from Massey University.
Laine Moger, a seasoned Journalist and Property Educator with six years of experience, holds a Bachelor of Communications (Honours) from Massey University and a Diploma of Journalism from the London School of Journalism. She has been an integral part of the Opes team for two years, crafting content for our website, newsletter, and external columns, as well as contributing to Informed Investor and NZ Property Investor.
