GRA Blogs

Articles by Salesh Chand.

How to Avoid Buying a Property Lemon

AUTHOR: Salesh Chand
Partner and Director of Business Services

POSTED: 24 July 2025

Views

As the saying goes: You make your money when you buy a property.
In other words, if you buy the wrong property, or for the wrong price, you can suffer financially.

But buying the right property for the right price will generate income for you (rent or trade profit), create equity, and allow you to keep building your portfolio.

So how do you make sure you buy the right property?
By conducting thorough due diligence, analysing physical characteristics, the area, and the numbers.

In this webinar, which we held on 22 July 2025, we take you through the process of how to undertake a full assessment of a potential purchase. Scroll down to watch the recording.

We covered:

What comprehensive due diligence involves
How to analyse a site – are there flooding issues or problems with services?
Comparable sales analysis – working out what the property is realistically worth both before and after renovations
Checking the neighbourhood – does it have good amenities (e.g. transport)? Is it a gang area?
How to run the numbers – renovation costs, rental yield, profit if selling, capital growth potential if holding
Red flags – properties and issues to avoid

I hope you enjoy the video. If you have any questions about how we can help you with property investment, contact the team at GRA on +64 9 522 7955 or via our online form.

Request a Meeting

Salesh Chand
Partner and Director of Business Services

09 522-7955

[email protected]

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

We want to thank you and your team for preparing these accounts for us. We have never been given such a detailed and extensive set of accounts in our lives! We’re very grateful and impressed with the amount of data you and your team have captured, deciphered and presented in such a professional manner. Thanks!

- Al & Michelle, September 2021

We can help

Here's how

Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.