Nelson Property Investors News
DUMB QUESTIONS
Wednesday, August 21st 2002, 8:41AM
by The Landlord
Is it a good time to buy rental properties?
Are you going to buy any more property?
Should I buy another property?
These are some of the questions people are asking me. Also another comment was...“I wish I had not sold those rentals last year”
I read in the latest Wellington PIA magazine (Unquestionably the best local mag in the country) “My advice is to keep looking and buy good properties. There will never be a better time. There is no better investment than residential property.”
An old stockbroker told me once the best time to buy is when there is blood in the streets. In other words buy when it is not popular and everyone else is selling.
I buy when I am ready and circumstances permit me. In other words I do not wait for a sign or when everyone else is doing it.
Buy when you are ready and have enough money (or equity to do it). Do it for the right reasons. The right reason can vary from person to person. Such obvious things as income, spare cash, commitments, age, health, landlord skills, OE plans, marital status, need, and children all come way out ahead of greed. Dumb things like current market conditions and interest rates, change like the weather. If the only time you can profitably buy an investment property is when the interest rates are low and the tenant market is at a peak then it will not be long before things change and you start making a big loss.
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