In spite of the coronavirus pandemic, demand for property in New Zealand is still high. Buyers are keen, competitive and mostly well-informed.
Because vendors know this, you can be fairly certain that properties being offered at bargain prices will have a catch – if not several.
You might think you are saving $10,000 or $20,000 up front, but at what cost long-term?
Cheap isn’t always better, especially if substantial upgrades to a house or commercial premises are needed. Unless you are a DIY whizz, doing up a property can take you down a financial rabbit hole, especially when the inevitable surprises present themselves.
Properties that no-one else wants today will probably be difficult to sell five years down the track.
Rather than focusing on the asking price, consider properties with above average capital growth potential – that’s where long-term financial benefits occur.
Price is what you pay but value is what you get, so my advice is to buy the best property you can afford. Buying a ‘bargain’ might give you a one-off bonus, but it is unlikely to deliver you long-term rewards.