Starting or Expanding your Investment Portfolio

Many people miss the opportunity to make significant gains in equity because they want to ‘pick the right time' to start or expand their investment property portfolio.

When an investment is doing well we all want in on the rewards, however, more often than not by the time we secure the investment we've already missed a large increase in equity.

For this reason many investors take the opportunity to buy properties as market demand eases. By planning to hold a property portfolio in time for the next boom you can ensure you maximise any increase in equity across all your properties.

Media headlines have predicted market busts but few articles have highlighted that while the rate of house price growth is decreasing, the property market is still increasing by around 9% (Quotable Value, January 2008).

However, even if the market were increasing at just 3% growth per annum on a $515,000 property an investor who decides to wait and try to time the market could potentially miss out on $577 a week in lost opportunities, or more than $30,000 over a year.*

There is strong historical evidence to say that there's only one direction the property market consistently heads, and that's up. While there is no denying there are fluctuations along the way the Auckland residential property market has steadily and consistently increased in value.

Based on this experienced investors remain confident that long term trends will favour property and the returns it can generate for them, irrespective of when in the property cycle they buy.
The best time to start investing is as soon as you are financially able to do so. Every week you delay investing you're missing out on opportunities to capitalize on growth and save money on your taxes.

It's time to stop thinking like a home owner and start thinking like an investor. Remember, it's time in the market, not timing the market.