Where is the best place to buy?

Today QV published the list of 10 best and 10 worst performing area for the property. They have compared the figures from the peak of the 2008 boom.

10 Best performing Area*


10 Worst performing area*

*Please note: This list is NOT the list of the best places to buy!

View the full QV report

What we can learn from this?

• Auckland, North Shore and Manukau are in the top list and that is because there is always demand for property in Auckland, lots of development, immigration, entertainment and I am sure the rugby work cup next year would push Auckland to the top of this list!

• Do your homework before you buy the property:

-Is there a new development in the area (Can be good or bad)
-How the employment rate, are they stable (hobbit!!!)
-Are there good schools available in the area
-Is there a good medical and emergency facility close by
-How is the lifestyle , is there a gang presence in the area!

For example look at Gore, it is on the top of the list because of the farming and industrial projects around the area?

• Remember the saying “Location, Location, Location!” Buying in a top performing area can increase your chances of the property increasing in value and will make it more desirable to purchasers in the future.

Don’t?

• Always be careful when you want to buy in a touristy or trendy area as the prices can be inflated by overseas investors’. Look at the worst 10 list you will see most of these areas in the list!

• Never put all your eggs in one basket – just imagine the feeling of the property investor who bought all his property in Queenstown!

• Don’t buy based on emotion, all of us want the house with a sea view but it is not necessarily the best investment.

• Don’t buy in the area in which the whole  economy relies on one company or business (meat works, power company, timber) we have seen so many towns that have gone through boom and then died because the company decided to close the plant or stop the business in the area.

Brad Golchin, Accountant,

Wise Advice – Xero Gold Partner

Tel: (09) 639 1004

Website: www.wiseadvice.co.nz