2009.02.17 00:25:22
This morning I have had a quick look at a couple of Auckland projects that are available for sale at severely discounted prices.
The question that springs to mind though is this “should someone purchase an investment property now?”
The answer of course is “it all depends”.
Everybody is different and everybody has their own individual needs and concerns.
Looking at these brand new projects makes me want to buy right now however like many people I have already reached the limit where the banks will lend to me, this is such a shame as their are so many bargains right now out there in the market.
One of these properties even has a guarantee for 2 years from Westpac at 6%, thats amazing especiall when you can borrow money for less than that.
For most people who have never invested in real estate before now is a perfect time to get in, it’s a time when the holding costs on these properties is less than the income you are going to earn and that makes a excellent investment.
If you already have a large property portfolio the key now should be on reducing debt rather than increasing it as lending criteria becomes tighter, after one dy you will need to refinance those loans and the better your Loan to Value ratio is the more likely the bank will look favorably at you.
So in my opinion if the banks will lend you the money now, go ahead and invest. If you are near the maximum capacity for borrowing you should look at selling down or reducing debt levels using a debt management program.
I am happy to chat to you about what is best for your situation, all you have to do is drop me a line of leave a comment here.