Apartment strategy risks
Question from Andrew updated on 16th September 2020:
I'm interested in getting a start on the property ladder. I was thinking about investing in an Auckland CBD apartment and putting it on Airbnb. But it seems that the Covid-19 crisis has dealt a blow to that strategy. Do you think that is the case? Or do you think that it could be worth pursuing it a bit further down the track?
Our expert Kris Pedersen responded:
I’d be careful of this strategy at the moment as we currently have no idea on timeframes for when the boarders will open up again. I do expect to see some good buying opportunities come up in the apartment market going forward. But in the short term in this segment of the market, I believe we may see both prices and rents pull back a bit. So you will need to be careful in how you approach it.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz