Price. It's something we all think about and something we all think we know, but how do we actually know what a "good" price is?
In a lot of ways, price is one of the main factors that determine whether a particular property is viable as an investment. Of course, there are a lot of other factors that come into the equation, but price is right up there with the location as the most important thing to consider.
As a result, people who are looking to invest often consider themselves experts in the field of pricing because they know what other listings are going for and what they think they can expect.
However, we're here to change your perception on price.
A price that makes sense for one investor might make absolutely no sense to another investor. Why?
Well, different investors have different philosophies and ideas on what will work for them so the price of an investment should determine what's best for them.
For instance, an investor that is looking for short-term gains in a rising market is heavily reliant on a below-market price so they can turn a profit within a matter of weeks or months.
Whereas, on the other hand, a long-term investor who plans to hold the investment for 10+ years is less worried about short-term discounts and perhaps would be more interested in the growth prospects and the yield.
At Thrive, our philosophy to investment is to buy & hold because this is where the vast majority of the capital gains are made so price is important, but it isn't the only factor to consider.
Time in the market always beats timing the market.
Yield, location, growth prospects, floor plans, and so on must come into the conversation and we look at this in-depth throughout the strategy process when we're one-on-one with our clients.
Short-term market speculators who are reliant on gains over a small period of time don't need to focus on yield or location as much as what they anticipate will happen in the market over a short period of time.
People making investment decisions tend to be pessimistic rather than optimistic which can lead to negative perceptions of price when they're analysing an investment.
They forget that over the last 20+ years properties in New Zealand have increased on average at 6.3% per year. So, even in a slow, or falling market, people should pay more homage to the long-term prospects instead of the short-term market.
This falls back in line with our philosophy mentioned above, price is subjective and what makes sense for one person will make no sense for someone else.
With Thrive, we are helping people create generational wealth through long-term property investment so when we look at price with you, we will take a long-term view and help you understand what prices work best for you.
What do we do?
We help Kiwis build wealth through property investment. Our advisors will take the time to understand your individual needs and recommend suitable investment properties to help you build wealth and set up your retirement.
What does this look like?
Who are we right for?
How much does it cost?
How do I start?
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