I get asked this all of the time. Well you know, no one really knows as it’s so difficult to predict economic cycles. However, my answer has remained consistent forever – it's always a good time to buy property!
I don’t say that with a cheesy smile and white shoes on to get another sale! I say that because buying a property is a business decision. Whether it’s for self-occupation or a rental, it’s about a long term strategy (say 8-10 years plus) not about a “buy and flick” approach to make a quick capital gain. Anyway, IRD has brought in the Brightline test to ensure people don’t do that within the first 2 years unless you want to pay tax on any capital gain.
If you’re buying with a long term strategy in place, it focuses you more on the fundamental of buying location. It focuses you on looking at the “business” your buying (not just a property) where you need to maintain it, invest more in maintenance from time to time, add value through alterations, landscaping, ensure your income (rent) stays in line with market and that you manage your costs – biggest being interest rate risk!
Having a proper strategy creates focus and focus creates better chance of superior outcomes. It’s never a bad time, just focus on the longer term goal and forget about the pot holes that will happen from time to time, change the tyre (tenant) and keep driving towards the destination.
Some people can handle running multiple businesses and others are too nervous to have more than one. Get the right advice, support crew around you and you’ll achieve more. We recently helped a client get 3 more investment properties (all through main bank lending) when their last adviser had told them they were already capped. Imagine if they weren’t referred to us! Let’s just say they are very happy they were.
I help people with property investment strategies. Get email@example.com to organize a strategy session for you, with me, one evening. I’m happy to run a workshop for like-minded property investors in our meeting room if you have a group of friends that’d like to attend. That’ll spread the cost of $325 plus GST.