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MAY 22 2019
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Is 2019 a good time to invest in property even though New Zealand’s housing market is flat?

Posted by: Connie in Property Investing

When’s the best time to buy a house in New Zealand? Perhaps some New Zealand investors have told you that you shouldn’t invest in 2019, and say that the housing market has flattened or crashed this year. For example, Auckland is a place where property investment has been growing rapidly in the past few years. However in recent months, house prices have fallen, particularly in Auckland. So, some New Zealand investors might think that 2019 is not the right time to invest in property.

However, there will never be a “perfect” time to buy a property. Life circumstances can change and the economy can surge or falter. That’s why some optimists keep pursuing property investment strategies and professional advice from property strategists. They believe that with the right mind-set and strategies, they can climb onto the property ladder and achieve financial freedom.

In this week’s blog, our guest expert in property investment, Gary Lin, discusses whether or not 2019 is a good time to invest in property. If it is the right time, what’s the best investment strategy?


Is 2019 a good time to invest in property even though New Zealand’s housing market is flat?


Video Timeline

1. Is 2019 a good time to invest in property? -- 01:58

2. What’s the best property investment strategy in 2019? -- 03:19

3. Interested in property investment? -- 06:58


1. Is 2019 a good time to invest in property?


For the majority of property investors, 2019 might not be the right time to consider an investment property. Housing markets typically move in cycles. Nine years ago, the New Zealand property market was at the bottom of the cycle. However, in the past two years, property almost reached the peak of the cycle. For those New Zealand investors who entered the New Zealand property market early, they have benefitted substantially from the capital gains they have made from their properties. However, the New Zealand housing market has become flat now. In fact, the house sale prices in some areas, like Auckland for example, have fallen in the last two years.

Based on the current state of New Zealand’s property market and other factors, investors who are hoping to achieve capital gains might find that 2019 is not the best time to buy a property in New Zealand, especially in Auckland.

However, the property investment game can be approached from many angles. There are multiple strategies you can choose from that lead to success as a property investor. In 2019, you need to carefully choose a strategy that ensures you can still win in the current housing market. 



2. What’s the best property investment strategy in 2019?


If you are thinking about investing in the property market, the best strategy in 2019 is focusing on receiving a positive cash flow from your investment property.

The positive cash flow strategy involves investing in properties where the rental income is greater than the total expenses of the property, such as the mortgage, maintenance costs, property management fees, rates and insurance.

Using the cash flow strategy, investors receive a weekly income from their investment property and have cash in their pockets to cover their regular property expenses. As it’s not easy right now to achieve capital gains, particularly in some Auckland areas, this strategy helps you minimize the investment risks, which becomes crucial in today’s New Zealand property market.

Positive cash flow can also help you build your property portfolio. If you receive positive income from your existing rental properties, it might be helpful to apply for another loan to buy an additional property.

Another reason why 2019 might be a good time to invest in property is if you have a good mind-set and use the right investment strategy. New Zealand’s real-estate market is flat now, especially in Auckland, which results in there being less active investors around. This means there is less competition from other buyers and you might be able to secure a property under market value. 


3. Interested in property investment? 


Overall, investing in positive cash flow properties can be a great investment strategy for the current New Zealand housing market. If you are considering investing in the real estate market this year, using this strategy should be your priority.

However, for investors who have insufficient experience, it can be hard to find a rental property that meets the criteria of positive cash flow. That’s why we highly recommend you talk to a professional property coach like Gary. As one of New Zealand’s leading real estate investors and educators, he has helped many investors climb onto New Zealand’s property ladder. With the right mind-set, strategies, and coaching, Gary can show you how to achieve wealth and financial freedom through property investment. You can contact Gary via phone: 0284002820, email: Gary@Garylin.co or website: www.garylin.co


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.


Prosperity Finance – here to help

Prosperity Finance looks at property investment strategically, empowering you to make the best long-term, informed decisions. We are professional mortgage brokers and are here to help. Give us a call today on 09 930 8999. 


Other Blogs You Might Like:

How much more mortgage can I afford? (Tips to quickly increase your borrowing power by 800k)

Changes to bank lending policies: An update on your borrowing capacity and high LVR loans

All you need to know about New Zealand’s ring-fencing of residential rental losses bill


Tags:

When’s the best time to buy a house in New Zealand? Perhaps some New Zealand investors have told you that you shouldn’t invest in 2019, and say that the housing market has flattened or crashed this year. For example, Auckland is a place where property investment has been growing rapidly in the past few years. However in recent months, house prices have fallen, particularly in Auckland. So, some New Zealand investors might think that 2019 is not the right time to invest in property.

However, there will never be a “perfect” time to buy a property. Life circumstances can change and the economy can surge or falter. That’s why some optimists keep pursuing property investment strategies and professional advice from property strategists. They believe that with the right mind-set and strategies, they can climb onto the property ladder and achieve financial freedom.

In this week’s blog, our guest expert in property investment, Gary Lin, discusses whether or not 2019 is a good time to invest in property. If it is the right time, what’s the best investment strategy?


Is 2019 a good time to invest in property even though New Zealand’s housing market is flat?


Video Timeline

1. Is 2019 a good time to invest in property? -- 01:58

2. What’s the best property investment strategy in 2019? -- 03:19

3. Interested in property investment? -- 06:58


1. Is 2019 a good time to invest in property?


For the majority of property investors, 2019 might not be the right time to consider an investment property. Housing markets typically move in cycles. Nine years ago, the New Zealand property market was at the bottom of the cycle. However, in the past two years, property almost reached the peak of the cycle. For those New Zealand investors who entered the New Zealand property market early, they have benefitted substantially from the capital gains they have made from their properties. However, the New Zealand housing market has become flat now. In fact, the house sale prices in some areas, like Auckland for example, have fallen in the last two years.

Based on the current state of New Zealand’s property market and other factors, investors who are hoping to achieve capital gains might find that 2019 is not the best time to buy a property in New Zealand, especially in Auckland.

However, the property investment game can be approached from many angles. There are multiple strategies you can choose from that lead to success as a property investor. In 2019, you need to carefully choose a strategy that ensures you can still win in the current housing market. 



2. What’s the best property investment strategy in 2019?


If you are thinking about investing in the property market, the best strategy in 2019 is focusing on receiving a positive cash flow from your investment property.

The positive cash flow strategy involves investing in properties where the rental income is greater than the total expenses of the property, such as the mortgage, maintenance costs, property management fees, rates and insurance.

Using the cash flow strategy, investors receive a weekly income from their investment property and have cash in their pockets to cover their regular property expenses. As it’s not easy right now to achieve capital gains, particularly in some Auckland areas, this strategy helps you minimize the investment risks, which becomes crucial in today’s New Zealand property market.

Positive cash flow can also help you build your property portfolio. If you receive positive income from your existing rental properties, it might be helpful to apply for another loan to buy an additional property.

Another reason why 2019 might be a good time to invest in property is if you have a good mind-set and use the right investment strategy. New Zealand’s real-estate market is flat now, especially in Auckland, which results in there being less active investors around. This means there is less competition from other buyers and you might be able to secure a property under market value. 


3. Interested in property investment? 


Overall, investing in positive cash flow properties can be a great investment strategy for the current New Zealand housing market. If you are considering investing in the real estate market this year, using this strategy should be your priority.

However, for investors who have insufficient experience, it can be hard to find a rental property that meets the criteria of positive cash flow. That’s why we highly recommend you talk to a professional property coach like Gary. As one of New Zealand’s leading real estate investors and educators, he has helped many investors climb onto New Zealand’s property ladder. With the right mind-set, strategies, and coaching, Gary can show you how to achieve wealth and financial freedom through property investment. You can contact Gary via phone: 0284002820, email: Gary@Garylin.co or website: www.garylin.co


Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.


Prosperity Finance – here to help

Prosperity Finance looks at property investment strategically, empowering you to make the best long-term, informed decisions. We are professional mortgage brokers and are here to help. Give us a call today on 09 930 8999. 


Other Blogs You Might Like:

How much more mortgage can I afford? (Tips to quickly increase your borrowing power by 800k)

Changes to bank lending policies: An update on your borrowing capacity and high LVR loans

All you need to know about New Zealand’s ring-fencing of residential rental losses bill


Tags: