Missed Hamilton boat?

Question from Cara updated on 26th October 2015:

We have been looking in Hamilton for an investment property and prices seem to have taken off. We are looking at a place in Deanwell. The house next door sold for $265,000 in December (same size section, house, CV, rooms) and the one we are looking at has a fixed price of $319,000. Have we missed the Hamilton boat? We are looking at least a 10 year investment. Should we snap something up?

Our expert Kris Pedersen responded:

Firstly, you need to establish some investment rules to understand exactly what you are trying to achieve to ensure that you purchase the correct property/properties. Don't rush in with the worry that you need to make a decision as quickly as possible as that is likely to result in you purchasing the wrong property. There is a chance that the purchaser who bought for $265,000 has bought under market value or, alternatively, that the property which has a fixed asking price of $319,000 is unrealistic. If the property going for $319,000 is still of interest then it's a good idea to pay a registered valuer to do a report and ask their opinions on the market.

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz

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