As a property coach, I often get asked whether investing in property is worthwhile.
My answer to that question is yes, but like any business opportunity, unexpected and unforeseen circumstances can make it challenging at times.
Over recent years the Christchurch earthquakes have caused insurance premiums to sky rocket right throughout the country. Also, along with the Auckland area, house prices have increased rapidly – at the detriment, in some cases, of the smaller regions.
So, how do you help to ensure your investment is sound?
Before you invest in property, make sure you know your current situation and plan thoroughly to help mitigate potential risks.
Spend time ensuring that:
1. Your cashflow covers all expenses plus a good buffer to allow for the unexpected.
2. You will be able to reduce the debt over the years.
3. You are prepared for maintenance.
4. You do your homework.