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Why Choose Group Investment?

Real Estate Together is New Zealand's first agency for group property investment. All of our investments are compliant with regulations outlined in the Real Estate Agents Act 2008 and we are audited by the Real Estate Institute of New Zealand (REINZ)

Why housing is a popular investment

Property investment in Auckland has always been a strong investment choice for Kiwis, and for the first time ever it’s cheaper to buy property in Auckland than rent it, making now the ideal time to invest.

There is a huge demand for affordable housing in Auckland due to immigration, more Kiwis moving to Auckland from elsewhere in New Zealand, and our strong economy. Statistics New Zealand forecasts that Auckland will need 400,000 new homes over the next 30 years to cope with demand.

Yet there has been a huge drop off in the number of affordable homes being built in Auckland due to a reduction in government spending in this area. The number of affordable homes that have been built since 1990 is 70% lower than in the 30 years previous, according to 2018 data from the Institute for Economic Research.

The huge drop in supply coupled with increasing demand makes Auckland housing a popular investment choice. However it also means that house prices have increased to the point where the average Kiwi is struggling to save enough to afford their first home, or to buy a house as an investment for later in life.

This is why we’ve created Real Estate Together, to help more Kiwis get onto the property ladder or buy an investment property.

Low interest rates, climbing property values, and strong rental incomes mean Kiwis can invest in Auckland housing with no monthly costs for renting and maintaining their properties.

How it works

Group Together

We bring together a group of four likeminded investors, or you can arrange your own group.

Group Contract

We provide a Group Investment Contract for investors and their lawyers to approve before investing.

Property Management

We rent out and manage your investment property providing regular relevant updates to the group.

Arrange Funds

We organise the funds required for the purchase, which could include savings, a mortgage, or money borrowed from family. Our independent finance brokers ensure the group receives the most competitive rates available.

Property Selection

We source a property for investment using our expert knowledge of Auckland's market trends.

Property Purchase

We manage the buying process, negotiating costs with the property vendor or bidding at auction.

Your New Investment Property

Available Now

You could own a quarter share in this property for $150,000.

Total buy price: $600,000
Historic increase in value: $60,000 per year
Rental income: $32,760 per year

This income covers all of the costs and more:
Mortgage payments at 4%: $24,000
Rates: $2,000
Property Management: $3,000
Insurance: $800
Total Costs: $29,800

Simple and transparent

Our Fees

Our fees are simple and transparent. A fee of 4% of the property purchase price + GST is shared equally between investors. Additionally, for group investors there is a flat fee of $5000 + GST, however this fee doesn’t apply for investors wanting to buy alone.

Once the purchase is complete, we charge an ongoing fee for managing the property, which is 8.5% + GST of the rental price. This is the standard fee charged for an audited REINZ-controlled service within our highly regulated industry. If we need to find a new tenant at any point, a fee of one week’s rent will apply.

When the time comes to sell your property, we charge the standard professional market rate at the time.

Risks and Considerations

Property values are tied to interest rates, how many buyers there are for your property, and how many others are also selling their properties at the same time. You may risk losing capital on your initial investment when you sell.

Buying a property can tie up your savings. If you invest most or all of your cash in property and then need access to cash, you’ll either need to sell, tenant your property or increase your mortgage. This isn’t always easy and there are usually fees involved. Your ability to sell your investment will also be dependent on the terms of your Group Investment Contract, if applicable.

Most people pay a deposit and borrow money to invest in property. Ask yourself how much debt you can afford to take on. Use your bank’s mortgage repayment calculator to find out how much you need to repay per month, and how much of your income is left to pay other household bills.

If you cannot find tenants, you will be required to cover the mortgage payments while there is no rental income. Make sure you have enough savings to cover these unexpected costs.

Your mortgage repayment will rise when interest rates go up, affecting your disposable income. A 0.5% rise in interest rate to 6% for a loan of $300,000, fixed for 30 years, would add about $110 more to your mortgage each month, or a repayment of around $1,800 per year.

If interest rates fall, and you choose to refinance a mortgage rate that has been fixed for a number of years, you might need to pay a penalty fee for breaking the terms. This may make your total loan repayment more expensive. It’s also possible to end up owing more than your property’s worth if its value drops. This is known as negative equity.

You need to think about your intentions when you first agree to buy a property. What you intended to do will determine your tax situation when you come to sell. If you buy with a firm intention to resell the property, then you will have to pay tax on any profit you make. This is separate to the brightline test. The intention to sell does not need to be the main reason for buying the property – it could be one of a number of reasons for buying.

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