The Opportunity is to be positioned for Opportunities:

Buying in a declining market

“The Opportunity for Opportunities”

Welcome to June (and nearly July) and a very different Property and Lending Environment compared to even a few months ago.

I attended a very interesting session at the Tauranga Property Investors Meeting last month.  Gordon Lambeth (Northern Region Representative of NZ Property Investors Federation), Mark Walton (Bayleys Commercial) and Matt Fenton (PRP Valuers) provided an insightful panel discussion on Commercial Property and the difference in approach/thinking and many of the themes were applicable to all classes and investments (although it’s definitely a different mindset).

Although Commercial Property Prices are on the rise, the yields are not.  However, given Rent/Lease costs are often aligned to CPI (or market reviews) and the demand (to buy and rent - particularly commercial and industrial) is currently so high, there are opportunities to buy well and create value/increase yields both from adding, adapting, changing, refurbing, repurposing etc. There is also the opportunity to increase rents as CPI/Market reviews are applied to increase the yields.  There are many many other variables and considerations (and it’s a very different game to residential property) but it further emphasised the point of sometimes having to look past the current yield/price and instead considering the longer-term opportunities to increase the yield and/or grow the value.

Although this meeting was focussed on Commercial. It also reaffirmed for me that, although there are some definite headwinds in the residential property sector at present, the opportunities are upon us over the near and mid-term and it’s time to get the house in order to take advantage of those opportunities when they arise. 

Whether it’s the Owner-occupied home upgrade you wanted but couldn’t find in your price range last year or couldn’t secure because they were all being sold at auction. Or whether you want to be close to schools/parks/work/transport/beach but gave up in the recent feverish market, now might be the time to review what’s out there and whether you can negotiate the terms of an offer to suit your position - the power is much more in your hands as a buyer than it was only a few months ago. 

Or you may be a current or aspiring Property Investor. As more and more property comes to the market, it’s potentially time to leverage some of that Equity you have built up in recent years and re-start (or kickstart) a diversified retirement/passive income strategy.

Or you may be a First Home Buyer - possibly despondent as a result of the recent feverish, competitive and increasing market prices. Now is your time (be it now or in the months ahead). It’s time to be prepared and ready to jump.

If you or anyone you know is thinking of purchasing their First Home, upgrading their current home or buying investment property, we are running webinars throughout July and August for anyone interested in exploring further. See links below to register

Wednesday 6th July 2022 at 12.30pm - Navigating the Process in the Current Environment

Thursday 4th August 2022 at 7pm - First Home Buyer? Learn how to Navigate the Process

Thursday 11th August 2022 at 5pm - Positioning for future requirements and opportunities

Enjoy the crisp days of Winter - if you are a skier/boarder I’ll see you on the slopes for what is shaping up to be an Epic Season!

Cheers

Paul