It is an interesting time in the property cycle at the moment. So much so that some are saying things are going to crash and burn, while others like me think it is going to tick away pretty well sideways for the next one to two years with small ups and downs, but the downs are certainly nothing to get concerned about. Well not in my humble opinion anyway. Then I read an article that foresaw significant gains happening in property values over the next four years.

So who do you listen to? Well, I am always wary of articles or in fact any media comments. I always think before I read an article: “What’s the writer’s agenda?”

I don’t mean there’s always an agenda, but far too many times there seems to be one. How on earth can you evaluate property as an investment when on one page in a news publication its being promoted, while an article in the same edition says it’s bad?

Those who follow property advice from the media or uneducated (on property) family and friends may get themselves in trouble.

Just to confuse you even more, especially if you are a new investor, you should know that different areas around this great country of ours are at entirely different stages of the cycle from one another.

Educating And Planning

Getting educated and having a plan is the first step in being prepared. You must know your “whys” and what you want to achieve. Then come up with a plan on how to do this. As I often say, the great thing I love about property is that there are so many ways of making money through it with most being very successful.

Personally, I am currently investing in new builds and buying within the first release of a new development cycle. I am getting a great discount while being protected by the market, as the second and third releases are at higher prices than what I buy.

I’m also only required to provide a 20% deposit and have no maintenance costs to worry about for years. New builds have to be up to date as per all the new government regulations.

I have friends who only do small developments. They buy, subdivide and build three to seven houses. I have friends who only do larger subdivisions and build 30 to 50 townhouses or apartments. I have friends who only renovate, others who renovate and hold.

The most important thing to take out of this is you must know what you are comfortable with and come up with a suitable plan for yourself.

Be Ready

If you have the above sorted, then get ready to pounce. Two main things here: first, have your structure set up and know what company or entity you are buying it in (and for the right reasons); second, have your finance ready to go, approved up to a certain amount and understand what finance conditions you have.

Finance

Just a small note on finance. Make sure you are comfortable with which professionals you are using and that they are on your side to help you achieve your goals. This may be your local bank, a private funder, a broker ... Make sure they always look out for opportunities suitable to you.

My broker has access to a great new product that gives me 80% lending with less servicing criteria, which totally fits some of my investing. This is the sort of service you should expect from your lender.

Take Action

If I am correct with my opinion in this article, there are going to be some tremendous purchase opportunities in the next couple of years. Prepare to take action on some of the best opportunities we have seen in years, no matter what your strategy is.

Property Ventures is a licensed Real Estate Agency that specialises in investment property throughout New Zealand. They also have the NZ Property podcast/YouTube series where Mark interviews the property experts from around the country helping hundreds of thousands of investors. He can be contacted at mark@propertyventures.co.nz or 0800 NZPROPERTY (697767) Or watch the Podcast/YouTube video at www.propertyventures.co.nz/podcasts