The investment landscape today is a far-cry from what it was back in 2011 when prices were low and tenants were scarce. For over 12 months commentators have been screaming and shouting about there being a housing boom and rental crisis. Make no mistake, the high prices we see right now will continue to creep up; Auckland is not getting any bigger and we see no end to the waves and waves of immigrants. Surely that nagging empirical market principle of supply-and-demand is already in motion and driving prices up, up and up. What may have worked for you back in 2011 will probably be detrimental to your property progress now.
What should you be doing now then? Get to the drawing board, plan, plan and plan away! Wasn’t it Churchwill who said, “Failing to plan is planning to fail.”? Come on, the guy won a war, he must have known what he was on about. Winging it and hoping that you will enjoy some sort of cowboy luck while blazing the trail of the Auckland property scene will most certainly end in tears. Repeat after me, “Cowboy, bad. Sun Tzu, good.”
We expect this to be a four-stage process consisting of:
- Understanding where the property market is at the moment;
- Create a tailored property plan to improve your financial position in the long run;
- Carry out the plan and its contingencies; and finally
- Sit back to enjoy the fruit of your hard work!
To help with your planning stage, we have a couple of events coming up featuring experienced investors who will talk about their experience with the last complete property cycle, what they learnt and the wisdoms they will be applying to this particular point of this particular cycle.