Top Five Tips for Buying in a Booming Property Market
For the most part, the property market in New Zealand is doing much better than expected following the effects of the COVID-19 pandemic. However, when supply is not matching demand, there is more pressure to get that deal across the line promptly. To help property investors, we have put together five tips for buying in a booming property market.
1. Understand the process
Understanding the process that applies to any given transaction, whether buying or selling, is key. These days there are a lot of options out there:
(a) You are able to buy or sell an existing property by negotiation, deadline sale or auction through a real estate agent.
(b) You also might decide to buy a property off the plans as a turnkey purchase through a boutique developer or one of the larger developers.
(c) You might also be buying or selling privately, whether through an online advertisement or a fellow property investor through your personal networks. You might also be selling to longstanding tenants.
2. Communicate early
If you are looking to bid at auction or to make an offer on a property, make sure you have communicated early with your team of property experts. This will ensure that when you are ready to pull the trigger, your team is ready to help.
3. Be ready
Being organised and covering off what you can ahead of time may make the difference between you getting a great deal and missing out. You can arrange a preapproval ahead of time with your bank so you know how much you can borrow, complete Anti-Money Laundering identity requirements with your lawyer and other professionals and discuss with your accountant whether the existing structure you have will work for your new acquisition.
4. Do your homework
When you do locate a property that aligns with your investment goals, do your homework. It’s tempting to skip that building inspection report or LIM report that is crucial in confirming the property is a sound investment. You should also get your own advice but keep in mind your reports or advice may take slightly longer than usual to get to you.
5. Plan for the worst but hope for the best
It’s easy to get carried away when the market is doing well. Be cautious, take the time to assess an opportunity and the risk, pay for sound advice and plan for the unexpected.
Email Ryan below for further information or phone on (03) 371 1043.