Why You Should Buy Auckland Property

By Michael Mackinven | Property

Sep 29
Auckland Property

Investing in Auckland property is extremely exciting and can create huge wealth.

Many investors have created millions through Auckland property.  For myself, if it wasn’t for property I wouldn’t be in the position I am today.

Sure I have always worked hard at business and anything I do, but I’ve built my wealth through making sound decisions and focused effort through Auckland property investments.

When the financial world market collapsed in 2008, Auckland property abounded with forced sales at up to 30% below 2007 sale prices.

Since then the number of houses on the market especially in Auckland has dramatically declined and prices skyrocketed leaving new investors struggling to get into the Auckland property market.

Now to make it even more difficult, LVR’s (loan to value ratio) have gone to 60% for investors and 80% for home owners across the country (effective from 1st October 2016).

Banks are wary that the market is overheated and have tightened up their lending criteria.

real estate auckland

Incredibly, Auckland property prices have now exceeded an average price of $1 million, which for the majority of Auckland property investors and first home owners, is out of reach.

For the time being, as a result of the LVR changes there has been a drop off in demand which will likely lead to a stabilisation of price growth or even a small decline.

Furthermore, we can expect some sort of market softening from external market forces within the next 2 to 3 years however, long term, property prices will almost certainly continue to rise in Auckland due to the forces of supply and demand.

Right now though, and even during this time in a heated market property investment opportunities are available. With the recent changes it means there are more opportunities for Auckland property investors to find the right property with hidden true value.

Look for properties in Auckland to make cash flow positive

You’re dreaming I hear you say?

Where is the cash flow positive properties in Auckland?

The tried-and-true way to become wealthy through property is to get your properties into a cash flow position. This will create a steady passive income every month.

For the investor who wants to realise their goal by living off passive income, cash flow is one of the key factors when investing in property.

You can increase the cash flow by paying down debt, increasing the rent and or adding another bedroom or making renovations that improve the property.

Look for properties with a potential for capital gainsproperty investment strategies

property investment strategiesCapital gains result from a number of things including a growing property market like Auckland.

This is a pretty straightforward concept and it contributes to the idea of value investing over time.

If you invest for cash flow with the potential for capital gains, your investment strategy is right on target.

The best thing about cash flow is that it’s money flowing into your pocket on a continual basis. It’s money working for you. And generally, cash flow investing is based on fundamentals that aren’t as susceptible to market swings.

The Auckland property market is in a great position right now to invest in the right property with true value despite the rising prices.

Spend time researching your area to find the right Auckland property and you will reap the rewards over the long term.


About the Author

I have been a property investor for over 13 years and have created a multi-million dollar portfolio including residential and commercial. I could go on about this but I’m not here to impress you but to impress upon you that YOU TOO can create wealth through property whether that be $100K or $5 million. I’ve been through the boom – bust – boom so I know what it takes to stay in the market. I live locally in Otahuhu with my wife and new baby boy. I love to help and teach people about buying well and for long term. We can all make a quick buck but the real strategy is creating long term wealth.