"We can, and do, rest easy, secure in the knowledge that our financial interests are in good hands..."

G & J

Investment Failures

Avoiding Costly Property Investment Mistakes

We all know that the property markets throughout New Zealand’s major cities appear to be overheated. House prices have increased at rates numerous times faster than the inflation rate. Great for property owners, but a nightmare for those buying their first homes.

There has been a swing away from Auction to sale by fixed date. This effectively creates a tender type process. It also offers buyers better consumer protection.

Avoid Costly Property Investment Mistakes

We all know that the Auckland property market is very expensive, with house prices having increased at rates significantly faster than the inflation rate. We also know that from recent sales figures the average property sale price seems to have fallen slightly. We also know that the number of listings has declined from the peak. It had been great for Auckland property owners as their wealth increased whilst effectively doing nothing but paying the mortgage.

Achieving a Balance in Life

We all earn or create a certain amount of income during our lifetime. This can be through employment, investment or setting up a business. However, what you do with this income will determine how financially successful you are, which will ultimately impact on your ability to enjoy life.

Are Direct Property Investment’s Suitable for Retirees?

Investing in property for New Zealanders has been a popular means of building wealth for retirement. Typically, property investors will try to build a portfolio of properties using borrowed funds in the expectation that they increase in value. Their thinking is that over time they can sell off a couple of properties at retirement and repay any outstanding debt.

Borrow with Caution

When interest rates are low and property prices are rising rapidly, it can seem tempting to borrow more. Naturally, property owners feel wealthier when property values have risen. Their share of the property effectively is increasing, relative to that of the lender.

One of the dangers with feeling wealthier and more confident is that it can easily lead to taking on riskier ventures through borrowing more money. Obviously, it is very difficult to get through life without borrowing especially if you do not want to live in rental housing.

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