WHAT A YEAR!
At least we can’t complain we’re bored.
Major political change in the U.S. and at home (finally) has spurred a new confidence in the future that is almost unprecedented.
And the speed of change this new government is embracing only bolsters that confidence.
The developers are broke, the finance companies are broke and the banks are on the edge so where is the opportunity???
Yes, you knew it all along – it’s property – residential property.
What you have to watch are rental rates, vacancy rates, supply of new stock and interest rates.
And you can tick every box that NOW (yes, not 10 or 11 but 08/09) is the time to invest.
But you’d better visit the Bank Manager first because liquidity is an issue and it is going to tighten. You may, in fact, receive an unpleasant surprise when requesting that mortgage and attitudes will change monthly so keep in touch weekly with your lenders and their willingness to fund.
But do make the effort.
We are dealing with huge numbers of new investors who have seen the light and who are buying counter-cyclically – their mortgage interest rates are going to go down, the strong rental market is going to get stronger as there is no building going on (so a zero increase in the supply of new houses or apartments), meaning rents will increase and we all know what that means…yes, property values are going to go up.
And have we all seen this before?
Hell yes – and most of us simply gnashed our teeth and wished we had done something about it.
Well this time, call us.
The apartment market will never be cheaper (it’s currently at giveaway prices) and as always, there is virtually NO vacancy factor.
You will get a 6% to 10% return and the money you borrow may soon cost under 6%.
The maths is not complicated.
And if you’re a first time investor do let us know so we can be extra careful with you and cover the bases with valuation and borrowing.
But don’t rue the day this time.
It’s a no- brainer.
All you have to do is stop reading the newspaper and tune in to City Sales.
And the best way to see for yourself what is happening is to come to a City Sales fortnightly auction – you will be surprised at some of the big “names” in attendance and buying.
But make yourself known to me or Rowena/Mike Richards.
You won’t even feel it.
We’ve been lucky and have had a great year.
Best wishes for the Christmas break.
And some decision making.
Martin Dunn AREINZ
MANAGING DIRECTOR
