Being a property investor involves some risks. But with the right education, advice and planning, successful investors know that buying property is a smart way to grow capital wealth.
While there is money on the line, the cost of doing nothing often far outweighs the cost of investment.
Let’s not downplay the fact that investing in property means spending large amounts of money, which can be a frightening concept for many.
We grew up with parents and grandparents who lived by the rule that one home was enough. The rest of your money sat in the bank where it was safe.
This grounding means it can be hard to shake off the idea that a deposit for another property, or two, or three, is too much money to risk.
But the economy has changed. The way people lived has changed. Even our ageing parents might now be looking at property in which to invest savings as the returns are greater than anything they’ll get from a bank.
As well as our upbringing and a conservative belief about spending and debt, events like COVID-19 scare people off taking even minor calculated risks.
However, within every crisis is an opportunity and the global pandemic has seen interest-rates plummet to record lows and more tax breaks and government incentives than we’ve seen since the GFC in 2008.
If ever there was a time to invest in property, it’s now.
How Do You Reduce The Risks Of Real Estate?
There are some fundamental rules when it comes to buying property and it’s very hard to make a bad decision if you live by them.
- Population – People need houses. If the area is well populated and has potential for growth it’s a positive sign that housing will always be in demand.
- Infrastructure – Are the buildings, roads, transport lines and power supplies in good condition? Are they constantly being improved by the government to keep up with changing technology and demographic needs? If funding is coming in and areas are constantly being improved, people will always want to live there, meaning tenants for your investment properties.
- Employment – Are there opportunities in the area? Is there a university, hospital or other medical offices, shopping centres, financial industry? People like to live close to where they work – even more so after COVID-19 – so if there are jobs, there will be people looking for housing.
- Quality property – This isn’t just about bricks, although people will always prefer quality homes to shoddy ones. Quality also refers to the quality of the area i.e. the liveability factor close to the property. If there are well maintained local parks, beaches, shops and cafes, adjacent to well-built housing, it’s a smart place to invest.
Doing Something Is Better Than Doing Nothing
With endless opportunities surrounding us, now is not the time to do nothing.
If you want to invest in property but are scared of making a costly mistake, don’t go in blind. Come to one of our free property investing seminars.
Here you’ll learn how to take advantage of the current market landscape, as well as the chance to have one of our property experts assess your exact situation and establish a property growth plan that’s right for you.
There are limited spots available, so to secure your seat click here
By Sue Irons
CEO – Positive Real Estate New Zealand