Investor Agent Profile:
Kara Niles - Rotorua

Welcome to our new series, where Nick interviews the property investment specialists who make up our team. Find out more about people who work in property hunting deals fulltime, what they enjoy about property, what is a challenge and their own long-term goals!

This week Nick is talking to Kara Niles, who is our specialist in the Rotorua market. 

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What led you to get into property investing?

The very first property we bought I would not have called an “investment”. We had a deposit for a house but my job at the time paid for our accommodation so we didn’t need a house for ourselves. Our big plan was to have someone else pay our mortgage so that when we did need a house we could sell it and use the profit for our own house.

Describe your first deal. 

Our first deal was a 55msq apartment on Anzac Ave in Auckland. I didn’t know what I was doing so I sat down with a friend to discuss the property. His bottom line was it was a good deal if it was cash flow positive and not a leaky build. This tiny apartment was cash flow positive and was not a leaky build. It fit within our budget so we bought it.

How did you feel at the time as you made the leap?

Terrified. We had never had money before, having had a lot of student debt to contend with first. Now we had a deposit, but I was so fearful to make the wrong decision.

What was the most challenging deal you have done to date?

Believe it or not, the most challenging deal was our tiny house in Rotorua . We put a 30m2 house on the back of the section. It was time-consuming and there were a lot of hoops to jump through, but it was worth it because it is our highest-yielding investment at 15% and added value to our section.

What was the most satisfying deal you have done to date?

The most satisfying deal was actually our first owner-occupied home. All of our rentals are just about getting us closer to retirement but being able to buy our own home with space for the children to play was unbelievably satisfying.

It still makes me emotional to think that we put everything into buying that little apartment in Auckland and through that we were able to build our portfolio.

What do you enjoy the most about property investment?

I enjoy the promise of freedom. We came from humble backgrounds and started off with low-income jobs. Property investment offers us a certain amount of confidence that we will be able to retire one day comfortably, and hopefully earlier than the average age.

What do you least enjoy about property investment?

I am not a big fan of unexpected maintenance. Everyone should be budgeting maintenance costs into their budgets, but there are times when things cost more or many things go wrong at a time.

If you could go back and give yourself one piece of advice at the start, what would it be (besides buying lots more!)?

Fear is good. It keeps us on a safe path. But don’t let fear control you. Research. Build a team of wise experienced people around you and then leap.

If you had to start again today with the knowledge you have, what would you do?

I would have bought three properties in Rotorua rather than one in Auckland. They are earning nearly the same in rent each week, but I could have had land to develop. I wanted to buy near where I Iived and to look after the property, but I could have tripled my equity and had experienced people look after it for me.

Have your goals and approach to property changed since you began your property journey?

I thought I would be a property trader, but it turns out I much prefer buy and holds. I regularly look at my situation and evaluate what the next best step is to get to my goals. The goalposts do shift and I think that’s ok. The important thing is to always be moving forward.

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Kara's rules for investing in Rotorua:

1. There are properties where a bad location will overshadow a good return. If a deal appears too good to be true, it might be, so use your local team to work out why. 
2. Cashflow is critical, while Rotorua enjoys capital growth when the rest of the market moves, it can be a while between booms, so your cashflow will see you through lean times.
3. Keep your property tidy; in a flat period tenants will move if they can upgrade their rental for the same price, and you don't want to be the one left with a vacant home. 
4. A good team is especially crucial for out of town investing, work with good people because the value of the asset they are looking after is worth it.  
5. Don't be afraid not to follow the (social media) crowd when it comes to your investing strategy. An approach that is authentic to you and that you can make work, particularly if your team is onboard, will trump popular opinion in the long run. 

Get in touch with Kara and start investing in Rotorua here >> Link

Nick Gentle
Business Owner & Operations Manager
nick@ifindproperty.co.nz
027 358 3855