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Opportunity Found In Risk

Maree Tassell says it’s important to know investors can find opportunities where others see risk.

By: Maree Tassell

1 November 2018

I was privileged to attend the 2018 NZPIF Conference in Dunedin recently. Conferences are interesting and I usually try to pick up one to two new ideas amongst all the fun.

Why only one to two? Property is a game of leverage and you only need a few strong concepts to build on and you will be very successful over time. Discovering 50 new ideas, while it sounds exciting, can very hard to implement.

This time the comment that pricked my ears was a gentleman talking about investing in heritage properties. He is a consultant who advises on sites of archaeological significance. He uses that knowledge to invest in old commercial buildings in Dunedin that are in a poor state of repair and he makes them beautiful again.

He spoke about buying into these properties soon after NBS and building strengthening became known in the marketplace and I loved his comment – “we found a way to get into the market when others were actively trying to get out”.

Spot Opportunity

How do you know where there might be a new opportunity? Listen to the crowd chatter and if it’s negative take a closer look!.The vast majority (more than 90%) of investors own only one property or two at the most, so all those people saying ‘such-and-such is a bad idea’ are probably only passing on something they read in the news or heard from their grocer anyway.

‘How do you know where there might be a new opportunity? Listen to the crowd chatter and if it’s negative take a closer look’

I love this idea of looking for opportunities in areas while the “herd” is distracted elsewhere or put off by some factor that leads the majority to believe a deal can’t be done.

What does this look like in the real world right now?

Right now, investors are confronting a lot of change. The Healthy Homes Bill is going to increase costs; the RTA changes are going to make landlording more complicated and difficult in several ways; building costs are increasing; insurance has suddenly become difficult and expensive; and ring fencing losses takes away tax flexibility.

The Government are doing roadshows to talk about making renting fairer and you know what? It starts to wear you down.

It’s a lot of noise and change all at once and many investors, particularly older folks, have started to say “stuff this, I’m selling”. Too much, too hard, too much change.

At the same time, there will be an even larger group of folks who will sit on their hands and worry for worry’s sake. That adds up to more sellers and, at least for a short time, a shortage in those looking to buy.

Warren Buffett famously said “be greedy when others are fearful”.

Right now is the time to be out in the market looking for a deal. While everyone else worries about what the Housing Minister will say or do next, properties are sitting on the market and vendors are getting nervous.

Remember you only need to find one good deal. Those that aren’t suitable, don’t have the upside you want or are too expensive, don’t worry about them. Keep looking. Right now with all the negative background chatter you have less competition and more bargaining power than you probably have had in a while.

As an investment property buyer’s agency this is what we do. We uncover opportunities for our clients that others choose not to see or dismiss as “too hard”.

We look for a way to get you into the market and profit while others are looking for a way to get out.

iFindProperty is a licensed Investment Property Agency and our clients tell us we are great at helping investors find, analyze and buy great properties to build an awesome portfolio. Our team of Property Finders operate all over New Zealand and each are successful investors in their own markets. Successful investing starts with you and your property goals, so contact us today to talk about what you want to achieve and we will put a team in place to make it happen. Contact:[email protected] or 0274 866 146.

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