It’s easy to be confused about the market right now – we’re getting conflicting reports from every side. Will prices drop? Will they increase? Should you wait? Should you buy for yields or capital gains? What is the right type of property for your investment portfolio? Are you at risk of over-paying.
Unfortunately, many years in the real estate business have taught us that there’s no such thing as the perfect time to buy when you’re actually buying. In hindsight, you might have got lucky and purchased at the bottom of the cycle. But there’s no way to tell when you’re in the middle of an auction or about to make an offer on a property.
So how can you avoid overpaying and mitigate the pricing risks of purchasing a property? We have some tips for you:
- You’re a long-term investor, so think long-term. If you buy a property today and the price drops $10,000 tomorrow, it’s not going to make any difference to your strategy. By the time you come to sell in 10 or 20 years, the property market will be completely unrecognisable. Provided you can afford to own the property for the long term, short-term minor market fluctuations don’t need to worry you.
- Set clear buying goals. Know why you’re buying: positive cashflow or future capital gains? Know how much you can borrow and what your budget is: don’t spend ages looking at property you can’t afford. Know what area you want to buy in and what type of property you want. Sort these out before you start visiting properties and calling real estate agents – do your numbers, too.
- Stick to those buying goals! We see this a lot: buyers know roughly what they want, then they get side-tracked by what looks like a great deal on something else entirely. One minute you’re looking at apartments in Auckland, then you’re looking at a section on the Coromandel, then you’re looking at houses in Palmerston North. That’s a great way to see New Zealand via Google Earth, but it’s not a great way to buy the right property. You’re missing out on getting to know your specific market and wasting your own time.
- Get to know your market. You know where you want to buy and what, so watch every relevant property that meets your criteria. Once you know your market well, you will recognise ‘good buying’ immediately and make your move while the other buyers are standing around scratching their heads.
Get in touch with us today and let us know what your buying goals are – we can help bring you properties that meet your criteria, sometimes even before they make it onto the open market.