Being Prepared In Today's Property Market

Being Prepared In Today's Property Market
19-Jul-2019

It is an interesting time in the property cycle at the moment, some are saying things are going to crash and burn, others think it is going to idle away pretty steady for the next 1 to 2 years with some small ups and downs along the way and then there are some that mention significant gains that may happen in property values over the next 4 years.

So who do you listen to? How do you know what is going to happen in the property market? Well, as a real estate professional I am always very wary of articles or in fact any media comments that claim to know the future, I always think as I read an article: ‘what’s the writer’s agenda here?’

That’s not to say there is always an agenda, but far too many times there seems to be a hidden one driving the writer’s point of view. Otherwise how on earth you can read that property is an excellent investment on one page in the news and then see an article that says that a property is a bad investment in the same day?

Those who follow property advice from the media or uneducated (on property) advice from family and friends may find themselves in trouble. Just to confuse you even more, it is important to realise that different areas around New Zealand have their own sub-cycles that are at entirely different stages from one another.

Top 3 Tips On Being Property Market Prepared

How can you be prepared under this uncertain and ever-changing umbrella of the current New Zealand property market? Here are our top 3 tips.

1. Focus On Education And Planning

Getting educated and having a plan is the first step in being prepared. You must know your why, where and what you want to achieve. Then come up with a plan on how to do this.

Personally, I am currently investing in new builds. This includes buying within the first release of a new development cycle and can include getting a great discount while being protected by the market, as the 2nd and 3rd release are usually at higher prices than the first.

This is not to say my way is the only way - I have friends who only do small developments. They buy, subdivide and build 3 -7houses. I also have friends who only do larger subdivisions and build 30 – 50 townhouses or apartments. And then other friends who only renovate, or renovate and hold.

The key point here being you must know what you are comfortable with and come up with a suitable plan that meets your needs.

2. Be Ready

Having done the preparation and planning means you are ready to pounce should the rights opportunity arise.

Two main things here are first - have your structure set up and know what company or entity you are buying it in, and second - have your finance ready to go, approved up to a certain amount (while also fully understanding the finance conditions you have).

3. Get The Finance Sorted

Make sure you are comfortable with the professionals you are using and that they are on your side to help you achieve your goals. This may be your local bank, a private funder or a broker. Make sure they always look out for opportunities suited to you and your plan.

For example my broker has access to a great new product that gives me 80% lending with less servicing criteria, which totally fits some of my investing. This is the sort of service you should seek out and expect from your lending professionals.

There are always going to be great purchase opportunities in the real estate market, in my opinion particularly over the next couple of years. Be prepared and ready to take action and you can make the most of your property investments. Get in touch if you would like to discuss more about being prepared in today’s property market.