4 Renovations in 3 months

It's a great time for buyers!

Robyn Marsters is a very savvy property investor and trader. who has recently  purchased, renovated and sold 4 properties in 3 months...all in the middle of a global economic crises!

Here is what Robyn had to say about the market in these turbulent times...!

We have been busy.  The property market in New Zealand seemed to get a real lift which we personally experienced in September, October and November last year.  During this time we purchased, renovated and sold 4 houses.  We concentrated on good solid family homes in family areas, nothing too cheap or expensive, just right down the middle of the market.

Then it hit!! All over the television news, radio and papers...

The Government is going to make some changes to the depreciation and tax laws. 
Investors instantly stopped buying and they sat back and decided it was all too scary and they needed to wait.  During the next 4 months properties continued to list for sale and investors stopped buying.  The result in our local area was an increase from 1102 listed properties for sale to 1422, that is a 30% increase.  Great for buyers, they now have a great choice.  Terrible for sellers because unless their house is very cheaply priced or extremely well presented it simply won’t sell.

What are prices doing?
Prices have fallen and may still drop a little lower until the Government announces its proposed tax changes in May.  My personal thoughts are that the changes will not be as bad as the majority of people are thinking. 

What are other investors doing?
We know some astute investors who are taking advantage of the buying opportunities and as a consequence buying some bargains.  A recent example was a phone call I received from an investor wanting a second opinion.  He had a contract on a 3 bedroom house in an OK area of Hamilton city for $160K the house was tenanted and receiving $270 per week, the tenant had been there for quite some time and was keen to stay.  He explained that the rent would cover the mortgage, rates and insurance and wanted to know if he should go ahead with the purchase.  I suggested that it sounded like an awesome deal, 6 months ago that same house would have sold for around $200K or more.  He went ahead with the purchase and is now signing up on another.

Property investment is a long term wealth strategy

Although it is possible to make some quick cash the benefits are long term.  We personally love properties with land, because long term it is the land that receives the greatest increase in value not the dwelling.

We have been busy setting up a property management company in the Waikato region.  We have decided to make it cheaper with a better service than any other company we know about.  Anyway it is a challenge we are very keen to undertake.  If you know anyone who wants good cheap management in the Waikato region of New Zealand get them to contact us by email: robyn@6percent.co.nz and we will give them the details.

And remember it is a great time to buy when others aren't.

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