COVID 19: A property investor’s dream or nightmare?
There’s no denying that 2020 has been the most surprising, unsettling and uncertain year yet, with COVID 19 turning the way we go about our everyday lives’ upside down.
There has been no exception to this in property, with investors wondering how the effects of the virus will shape our ever-evolving marketplace. While New Zealand made a speedy recovery from the first wave of COVID 19, we have since seen how fragile our exposure to the deadly bug really is, with longer term consequences starting to impact our economy.
And of course, we’re not the only ones feeling it, in fact there’s no question that New Zealand is blessed compared to what is transpiring in other parts of the world, but still – our immediate financial security cannot be ignored.
Our take on it? It’s business as not so usual.
The time to invest is NOW
While we have to take into consideration the current climate landscape primarily set by COVID 19, our property market is still strong and healthy, making it a perfect time for investors to upgrade their strategy and ensure they’re still in it to win it.
With REINZ figures showing sales volumes up by 24.6 per cent in July compared to 2019, and with the many Kiwis flocking home from abroad, there’s no better time to secure and hold property.
In fact, it may be the only secure thing you can bank on right now as far as investments go.
If you look at the different asset classes that people can invest in there’s something about the safety and security that owing a property provides. The expression, ‘Safe as bricks and mortar’ or, ‘safe as houses’ rings true for many Kiwis, because as the market may go up and down, property in the long-run will always hold its value.
For example, you could invest in the share market and there is nothing wrong with that, but you have no control. It goes up and down all the time and the reality is you can lose everything overnight. You have absolutely no control and have little, if any influence on the market.
However, in property, the ups and downs are not as extreme, and people don’t tend to lose everything overnight. On top of that, there are many factors you can control and influence when it comes to the performance of your property and your ultimate wealth creation.
For example, painting your property, landscaping, renovating or even adding a room can have a significant impact on your return on investment.
And of course, for Kiwis there is a sense of pride in home ownership.
We have grown up with the ultimate goal of owning our own property due to the security benefits that stem from having a slice of real estate – it’s a My House, My Castle type of mentality and there’s nothing wrong with that. In fact, if done right, it could lead to a very comfortable lifestyle.
More importantly, it’s not something we should give up on or shy away from because we fear these uncertain and changing times.
The only way to predict the future is to create it.
With the way we work and play constantly shifting, more and more New Zealanders are having to think outside the square when it comes to generating wealth and a level of income that will be sufficient to manage the rising cost of living.
No longer can we rely on a 9 to 5 job and savings to look after us later in life. And even if that was enough to just cover us, what will life look like?
Will we be able to go on holiday or travel to see family? Make lifestyle upgrades or buy big ticket items? What about the cost of maintaining our health? Or things like general leisure and entertainment.
When we work so hard over so many years, it seems like a small ask to be able to enjoy these aspects of life without worrying that our savings account is slowly dwindling away.
This is where property investment comes in. Becoming a property investor is about building for the future, despite what is happening in present times. The future is still something we have to plan for. So yes, while we may not have a crystal ball that can predict how Coronavirus will truly affect us, or how it will shape our economy, what we do have is the wisdom of the past that can help inform us in our decision making going forward.
For example, this is not the first global pandemic to run rampant and it’s certainly not the first global crisis to radically change the way we live our lives. What has however been consistent regardless of the variables that we can’t control, is the long term performance of property in this country.
Property investment during COVID-19
Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times where others can’t. To find out how you can be one of those people, we’re running a free a property investing seminar.
Here you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.
Use the form below to book your seat.
Sue Irons
Director – Positive Real Estate NZ
Reserve your free seat!