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Thursday July 17, 2008
Prepare for the worst but look forward to the best
This was the message Australia's leading property investment expert Michael Yardney communicated to packed auditoriums during his NZ tour this month.
Michael reminded NZ investors that property markets are cyclical and in the past property slumps have lasted about four years. During that time property values fell on average around 15%.
This time around NZ’s property boom was bigger and longer than usual with the value of many properties increasing over 100%.
As a result, most people would agree that properties are overvalued and this means the current property slump is likely to last longer, or prices are likely to fall more, than in previous slumps.
He suggests NZ property investors prepare for the worst but look forward to the best outcome.
Property investors need to buy time to see themselves through this slump.
Michael's suggested strategies are:
1. Improve your properties through renovation – to add as much value as you can.
2. Get your properties revalued.
3. Refinance your properties based on your new valuations and get a line of credit to have as a safety buffer to see you through the next few difficult years.
4. If you are concerned the banks may take away your line of credit safety net, draw the money down now and put it in an interest-bearing offset account, don’t spend it.
5. If you have sufficient equity after allowing yourself a buffer to see you through the next few difficult years – consider investing in the high growth markets in Australia.
If you missed hearing Michael speak, or want to learn more, we are delighted to be able to offer Michael Yardney's books as well as exclusively stocking his range of mentoring CDs and DVDs.
In support of Michael's tour we are offering all products at a 10% discount until the 25th July. Simply enter Coupon code: PIA10 at the checkout.
Visit Landlords.co.nz/yardney to view details on his products.
Warm regards,
Amy Hubbard
Bookstore Administrator
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NZ Real Estate Investors Secrets 2nd Edition
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