Buy or sell?

The point when the market starts to change is critical for property investors. Right now it’s time to take stock and listen to advice to check you’re on track for the future. Is it time to sell or to start seeking a bargain? Property experts say it’s a good time for both.

Kieran Trass, of Hybrid Property Consulting (www.hybridgroup.co.nz

"These investors typically fail to realise the slump has historically only revealed a reduction in values two to four years after the ultimate peak of a property boom," he says. "And the current boom may not have even seen its ultimate peak in values yet. So these investors may be waiting until 2005 at the earliest, or maybe even as long as 2008, to see any fall in property values."

Where is the market heading?

Trass has been of the opinion since October last year that the cheaper suburbs in Auckland will continue to see value increases at least until June this year, maybe even longer, before values plateau. His reasons are:

1 The proliferation of naive property investors hungry to add more properties to their portfolio.

2 Properties in the lower socio-economic areas (generally) reveal higher yields.

3 The sheer volume of investors in the market means a percentage will always buy more property just for the sake of getting more exposure in case they miss out on capital gains.

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