Posts tagged property investing auckland
Seasoned property investor warning for property investors...

Olly Newland warns residential property investors not to be too reliant on capital gains as the current residential property market had the same smell about it as previous booms, before they turned into busts

That could see thousands of properties coming on to the market at the same time, with a shrinking pool of buyers.

Recent REINZ sales statistics showed that investors were buying 80% of the properties sold in South Auckland and 41% of sales across the whole of Auckland.

He says many investors he consults, have paid so much for their properties that they were having to keep shovelling money into them to keep them afloat, because the rental income wasn't sufficient to cover the outgoing like rates, insurance and maintenance.

And when prices stop going up, investors may decide to lock in the capital gains that had already been made and cash up rather than being left with having to collect rents, maintain their properties and deal with changes in tenants, without the benefit of capital gains.

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