I know that, as many have said, as long as the numbers stack up, it is always good to invest. However, I tend to think the best time (less effort and less risk) to invest is during market slump, for the following reasons:
1. Rent may be or near its bottom, so the downward risk in INCOME is minimum.
2. If a long-term fixed mortgage is used, the upward risk in EXPENSE is minimum.
3. Because there are far less buyers, you can take the time to do your due diligence.
4. As Kieran points out in his book, during market slump, you can buy quality properties closer to the city centre.
So what do we do during the boom times? Rents and property values are up, and so is the NZ$, so that is the best time to travel overseas and enjoy a good holiday. What do you think?
1. Rent may be or near its bottom, so the downward risk in INCOME is minimum.
2. If a long-term fixed mortgage is used, the upward risk in EXPENSE is minimum.
3. Because there are far less buyers, you can take the time to do your due diligence.
4. As Kieran points out in his book, during market slump, you can buy quality properties closer to the city centre.
So what do we do during the boom times? Rents and property values are up, and so is the NZ$, so that is the best time to travel overseas and enjoy a good holiday. What do you think?
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