Let’s deal with the buying part first. Everyone likes to buy when everyone else thinks that it’s a good time to buy. It’s the old story of safety in numbers, but the reality is that now is just as good a time to buy as it was a year ago or a year before that. Its what you buy that counts. And that brings us to the second point - improvement. If you buy a property that you can improve then that adds value to the property and will often result in increased rents. An often overlooked point in relation to carrying out improvements to a rental property is that if there is a downward ‘market correction’ then any improvements you have carried out will likely provide a buffer to a drop in the property’s value. And the last point of holding a property is a no brainer, especially when one looks at the NZ property market over the last 10 or 20 years. No other form of investment comes close. And ask any active residential property investor and they’ll tell you their worst property deals were the properties they sold.
Buy it, improve it, hold it National Propertyscouts
3 August 2020
They are the 3 basic fundamentals residential property investors should adhere to