The Absolute Absurdity of Paying any attention to House Prices or what’s in the news (June 2020) by Graeme Fowler

New article by Graeme Fowler below team.

As always, well worth the read.

You’ll recognise many of the alignments in messages in this to what we constantly bombard you with, particularly ‘if it makes sense now, buy it now’, and his love and trust for the media and commentators.

Enjoy! 

The Absolute Absurdity of Paying any attention to House Prices or what’s in the news (June 2020).

Here are a few headlines from various news articles, most of them over the past year or two.

1. Rotorua house prices up more than 25%

2. Rotorua - House sellers cash in, making median $200k as capital gains reach record

3. Tight Hamilton housing market pushes property values up

4. Hamilton’s house prices keep rocketing up

5. Fierce competition for Hamilton homes means prices likely to rise

6. Asking prices for Waikato homes increases 74% in five years

7. Waikato’s median house price climbs $60,000 in a year

8. Tauranga out-ranks Auckland as NZ’s most...

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Investor Mistakes: Not understanding the risks and downsides.

Not having a Plan B and Not understanding the risks and downsides.

By James Upton

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.

 
 

When I tell people that I am a property investor their response is often;

 

“Oh really, you must be a bit of a gambler… Bet you are hoping the market rises again soon?!”

 

When I hear this response time and time again, I have a little chuckle to myself.

 

In my opinion I could not be less of a gambler if I tried and I have strategies no matter what the market is doing, not simply being a speculator and waiting for it to increase. In all reality, my risk tolerance is very low and I have a number of exit strategies or Plan B, C and D’s for every trade property or buy and hold property I purchase.

 

For example, I just completed a trade in South...

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Property Investor Mistakes: Getting the all-important Tax and Accounting Issues wrong

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Investor mistakes: Getting the all-important Tax and Accounting Issues wrong
 
 
Our current government is intent on kowtowing to the masses and ensuring that the “greedy and capital driven” rental investors “who make money from doing nothing but holding property”, are no longer able to make quick capital gains or deduct rental losses, and have put in place the following changes:
 
Brightline Test
This initially meant that if you bought and sold a property within two years which wasn’t your family home then you paid tax on any gains, this has now extended to five years.
Our feeling on this is that most rental investors are in it for the long term anyway, if they do make a profit within a two- or five-year...
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Building a Solid Foundation in Real Estate PART 2 by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
 
 
Want to add a caption to this image? Click the Settings icon.
 
Building a Solid Foundation in Real Estate (Part 2, 2015).
 
The first article I did on building a foundation was an outline of why it’s so important if you are serious about your investing, and want it to be one of if not your main source of wealth and income long term. If property investing is more of a hobby than a passion, then it is not so important.
 
So if you are wanting to be more actively involved and reliant on property investing for an income in the future, here are some things that will make your overall foundation stronger and also some things that will make your foundation weaker.
 
All these will make it stronger.
 
1) Buying any...
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Article ‘What’s the Property Market Doing, and Should it Really Matter?’ by Graeme Fowler

Article ‘What’s the Property Market Doing, and Should it Really Matter?’ by Graeme Fowler written in March 2005.
 
Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
Perhaps the most common question I get asked as a property investor is ‘what do you think the market is going to do?’ I will usually answer with something like ‘I have no idea what will happen, and I really don’t care.’ A couple of months ago I was invited along to a free two hour seminar put on by one of the major banks on property investment. The guy that was speaking had one property himself which he was now selling as he thought it was a good time to sell. The rest of the time was spent going through a whole range of meaningless graphs, charts, facts and figures explaining to us all what he thought might...
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Property Values by Graeme Fowler

Disclaimer: Nothing is this article is meant to constitute financial advice of any kind, and is the opinion of the author only. Seek professional advice before making any financial decision.
 
There are many different ways people use to determine what they think a property may be worth.
 
Here are some of them below:-
 
Purchase Price
 
RV, CV or GV
 
E-Value
 
Registered Valuation
 
Market Value
 
Looking at each of them, we can understand a little better what each is used for.
 
1) Purchase Price – this is the price you pay for a property when buying, and it may actually be worth more, or less, than what you are paying for it.
Sometimes you may be in a multi-offer situation where you end up paying more than you originally intended to, or because you really like the property. Other times, it may be in need of work, or the owner wants to sell it quickly, so you may buy it for less than what it...
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