How long is a piece of String that is the answer to the above question? I believe that the answer to the above question is about making sure you practice the Fundamentals of Property Investing properly.
Firstly the main mistake that people make is that they pay way too much for the property. Recession or not you have to make sure you understand the purpose of why you are buying the property. Understand and work out all your costs under that strategy so that you know what price you would offer to make this property work for you. Be prepared to walk away don’t get emotionally attached remember we are looking at a Property Investment Strategy. So once you have worked out all your costs and done background work like sales in the area, rental appraisal etc then you have an offer to put on paper.
Another part of the formula that people get wrong is Area knowledge know where you are investing and understand the community. I invest in South Auckland and South Auckland only I know in this area there is good and bad. People that come from outside of South Auckland and see Sth Auckland as a good Area for rental properties usually get it wrong. Sth Auckland is just like any other area it has the good and bad capital growth areas. Understand the area you want to invest in go and spend some time at the local shopping centre go visit the street talk with the local diary on the corner do whatever you can to understand the Area and community.
Many other fundamentals like structure etc are just as important but to my mind are less effective if you get the two above wrong.
This is not the be all and end all but just from a property investor of 30 years or more is where I had my biggest gains and biggest losses. Make sure you see Property Investment as a way of creating wealth over a period of time but not as a Quick rich scheme.
So to go back to my original question is the recession a good time to invest in property my answer to that anytime is a good time to invest in property as long as you get your fundamentals right. Currently the market is depressed and do you think if you were a Property Investor that you would be out there offering prices on households that for what ever reason are selling there property.
We in Sth Auckland see this currently the market is inundated with listings coming on board all the time prices dropping drastically and heaps of mortgagee sales.
Good investing for the future.