Is now the right time for building a property investment
What a crazy time we are having in the world. The world has been shut down. And economies are collapsing. The world is going to have the worst recession since the Great Depression. So because of a virus and the subsequent pandemic that followed, economically we are all going to suffer for a number of years to come.
Now this isn't the blog for me to debate the economic system we live under. That's far to long and time consuming, suffice to say, there are far better models for society to live under than the current one. But while we do have this system we should try to make the most of it. And here in New Zealand we are lucky enough to live on the better side of this economic system. So while the world falls apart economically, we may well get through relatively unscathed.
So heading into a recession why on earth would you even think of investing in property. Well the way I see it, why wouldn't you be investing in property. Now I'm a little bias due to having the best investment tool in the marketplace. With the house I can build for you on a piece of land you already own you could add equity and put money in your pocket. And with a new home as an investment you will always attract good solid tenants.
One of our 3 bedroom homes including all of the council costs can be built for you for under $200k. At 5%, paying principal and interest, $200k costs about $250 per week. And a 3 bed house in Chch has to rent for upwards of $300 per week. So you increase your equity and you gain an income. You have the best rental property in the market and in a recession you are likely to have a larger pool of tenants to choose from. So yes, in my opinion, now is a good time to be building an investment property. Come and have a look at our showhome and have a coffee and a chat. Then talk with your financial team, show them the numbers and see what they say.