You will have heard a lot about diversification of share portfolios with many sharemarket experts recommending balancing share investments across different industry sectors. The same is true with residential real estate investment.
By splitting your share portfolio across sectors, or your property portfolio across regions, you can help balance the normal ups and downs these sectors may experience, and their impact on your portfolio.
Read MoreWe are well into winter now and seeing all the usual media hype around the property market. We are also seeing some interesting insights into the current property investment market in the numbers that are coming through. You may have seen a recent report from Core Logic stating that 2438 investors bought an investment property in Auckland in April and May this year. 72% of these purchased the investment with a Mortgage.
Right now we consider Auckland is over value compared to historical norms by around 3-10% depending on the suburb. In addition, many of these investments have poor cashflow – requiring the borrower to significantly ‘top-up’ the investment.
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