I thought our last week’s comments by the so called experts was pretty much what you would expect, predictable and boring, so I thought I would give you my take on some basic reasons why I am fizzing about the opportunities right on our doorstep.
Post-quake opportunities are for most of us a once in a lifetime plethora of opportunity. Whether it be developing a business, spec building, buying to meet rental demand or simply securing a new apartment on the fringe of inner city, these are all the right reasons to be a part of it!
- Supply and demand
Currently we have a housing shortage. With the influx of personnel for the rebuild (to date this has largely been for infrastructure) and especially as commercial and residential ramps up it is not rocket science to grasp the bigger picture of demand for real estate across the board. From light commercial to inner city retail, rentals and of course residential, over the next decade these sectors will show sustained growth. That’s not to mention the growth following the rebuild phase with Christchurch being the next buzz city to be in – I could go on…
- Flush local economy
Of course we have an artificially buoyant economy, what else would one expect with $40b being injected into one province? So why not jump on board and make the most of it and even if it only lasts for 10 years (which I doubt), at least you took action.
- Capital growth
While it seems inconceivable that we could see property doubling in value over the next ten years, all the signs are pointing in that direction and having owned investment properties for best part of 15 years during some pretty patchy years it is interesting to note that overall the majority of those properties have more than doubled in value – quite handy equity in such times of opportunity.
- Compulsory saving
I am of the opinion that buying real estate is better than saving money in the bank. While capital growth appears to be one of those “bonuses on the side” the discipline of paying a mortgage on an investment in my opinion is best form of saving. Unlike a bank where you can simply go to the local ATM or online and draw out funds to spend, the “bricks and mortar” of real estate become a resilient firewall that curbs compulsive spending.
I trust this is thought provoking and like my good clients Ian and Tess who bought an investment property the day after we met – you’ve just gotta do it!