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 Landlord

xpenses?

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.


Read More - Opens in a new window
Commenting is closed

Property News

Downward pressures might push investors out

There’s a major housing market downturn coming and it’s likely to reduce the number of investors in the market, according to ANZ economists.

Commercial

Industrial holdings leave Provincia in strong position

Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.

Mortgages

OCR reaction: Reserve Bank open to lower, negative rates

Economists say that the Reserve Bank has left the door open to lower or even negative rates, as it kept the official cash rate on hold in its Monetary Policy Statement (MPS) today.

Site by PHP Developer