Shifting house no sure bet - Mary Holm
Sunday 29 August 2004
Q. Maybe you can enlighten me on my investment in property.
I have a mortgage-free house worth about $400,000. I am a pessimist in NZ property.
But is it a wise decision now to sell my house and rent one, and wait for a lower price to buy back?
One of the problems might be: is the return on my investment with that $400,000 adequate to cover my rental e
By The Landlordxpenses?
Taking into account the worst scenario of a further rise in property prices, is there any kind of investment that I can hedge against this with my cash after the sale?
A. Stay put.
Quite a lot of people try to time the sharemarket, hoping to sell when prices are high and buy back when they are low.
As often as not, they get it wrong. And, because they have to pay brokerage and perhaps also tax on their gains, most end up worse off than if they had bought and held.
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