2017 has rolled around, and with it comes a chance to start afresh and make sure you achieve whatever you didn't in 2016. We've already talked about financial resolutions for the new year, but what about property goals? What exactly does property investment success look like and how do we achieve it?
A smart property investor knows that regardless of the market, the key is to look for long term results and to reduce debt – strategies that can go a long way towards successful investment. But there's a little more to it than that. Helping Kiwis make the most out of their money is what we're best at, so with that in mind we've whipped up a few handy property goals to live by this year.
Get on the ladder
The nations housing market is cooling right now – it's true. Peter Thompson of Barfoot and Thompson commented on movements in Auckland in a December 2016 media release:
"December's average sales price at $913,709 and the median price at $840,000 were both down for the second consecutive month. While prices definitely eased there was certainly no suggestion that current prices are under any great downward pressure and normal sales numbers are being achieved."
The Reserve Bank's data shows that property prices nationwide have trended sharply up since 1965, and despite this small downturn, that's likely where they'll head in future.
Your focus should be on getting higher up the ladder right now.
So if now's the right time for you, forget about the media and get the right advice about making property work for you.
Despite the relatively gradual, run-of-the-mill decreases we've seen the media whip people up into a panic. Our viewpoint here is that all of this speculation and worry rarely gets investors anywhere – your focus should be on getting higher up the ladder right now.
Reduce your debt
Positive debt such as your home loan isn't something you should feel guilty about, but it certainly isn't something you want hanging around for ever.
One of the main reasons for this is of course interest. Increasing the amount you pay off your home loan by just a little could make a bigger difference than you think – watch the video below to find out how.
To give you an idea of the significance of the fact discussed in the video – three years off of a 30 year loan term, at a market rate would save you almost $30,000 in interest payments. That's a new car, or even the better half of a deposit on another investment property!
Debt's a necessary evil when it comes to property investment, but minimising it quickly can help hasten your climb up the property ladder and solidify your financial future.
Improve your financial future
Three years off of a 30 year loan term, at a market rate would save you almost $30,000 in interest payments.
Market speculation is incredibly difficult and more often than not, inaccurate. So instead of hazarding a guess at when it's time to invest, let's look at the hard data.
The Reserve Bank's information shows that since 1991 New Zealand's house prices have increased by 7 per cent a year. As long as you're in for the long run, and enter into your purchase with a solid strategy, property is more than likely to continue increasing in value.
Despite all the assurances in the world, spending all that money is still an incredibly daunting prospect.
Instead of shouldering the burden by yourself, let us take half the load and use our experience and expertise to make sure that you achieve all your 2017 property investment goals.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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