Up-and-coming v proven performer

Is the practice of hotspotting a better strategy than buying property in a traditional growth area?

Thursday, May 18th 2017, 8:00AM

by The Landlord

New Plymouth

Finding that balance between risk and reward is one of the biggest challenges faced by every investor.

Some investors love discovering undervalued suburbs and buying when they are on the verge of growth, maximising their returns.

Others, though, choose to buy in areas with long term track records for positive performance, spending more but in a less risky location.

So which strategy do you think could work best for you?

Is it the “get ‘em while they are hot” approach which revolves around the appeal of up-and-coming areas?

Or is it the “safe as houses” approach which relies on the positives of proven performers?

In this month’s issue of NZ Property Investor magazine, we feature some head-to-head strategy showdowns between specific suburbs and cities.

The showdowns are Mangere v Epsom (suburb), Wellington v Auckland (city), South Waikato v New Plymouth (region) and Kawerau v Taupo (region).

While the showdowns demonstrate that there is a case for both sides of the argument, they may help you decide whether it is a conservative or an aggressive strategy that best suits you.

It is worth noting though that, overall, the advice for both strategies remains the same: crunch your numbers, buy well, know your market and look for deals where you can add value.

To find out more and read the full results of our strategy showdowns, click here to get the digital issue of NZ Property Investor magazine.

Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.

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