Right time to invest?
Question from Richard updated on 8th April 2016:
My wife and I (in our late 30s with two young kids) are looking to buy an investment property by using equity on our family home. We have pre-approval from the bank for up to $550,000. This would be our first investment property but our plan is for long term investment and building up a portfolio. Our question is whether it is a good time to buy an investment property in the boom market.
Our expert Kris Pedersen responded:
Trying to pick the top and bottom of markets is always a difficult thing to do. There are so many variables to be taken into consideration. Also, you need to think about where you are looking at purchasing.
Your plan is long term. So as long as you are purchasing into an area which does have good long term fundamentals - in regards to migration and employment opportunities - then often the key is getting into the market. But remember to focus on what your purchasing rules are so that you don't pay too much for a property now.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz