My friends and family know I’m a bit of a gardening geek, and this weekend I spent an unreasonable amount of time out in the garden, harvesting, preparing the soil, considering the impact of upcoming weather, and planting for the new season.
Claire Williamson
I couldn’t help thinking that this closely mirrors the discussions I have daily with my clients, about financial goal setting and planning, guiding them through the seasons and ensuring they take the right kind of action at the right time.
Right now, with borrowing costs easing and prices holding steady, it may be the perfect moment to sow the seeds of your next investment property.
But, like any good gardener, you’ll need a plan and an eye for timing.
Fertile borrowing conditions
Interest rates have fallen over 2 per cent in the past year, improving borrowing power for almost everyone, and for many this has opened up the possibility of an investment property purchase. Understanding where your serviceability sits today gives you a head start on anyone else out there looking to make offers on properties, and chatting with an adviser ensures you’ve got all the bank options on the table.
Solid ground beneath your feet
While prices aren’t tumbling, on average they remain fractionally below the peaks seen in 2021–22. In markets around the Waikato, many vendors are realistic on price, with a lot of stock on the market and plenty of choice for buyers ready to take action. Purchasing in a calmer market also reduces the risk of overpaying, and sets the scene for a strong long-term asset.
Spread the seeds widely
An investment property shouldn’t be your only wealth-building strategy, but it can diversify your portfolio beyond KiwiSaver, shares, business or term deposits. Just as a thriving garden features multiple crops, consider different locations or property types if you plan multiple purchases, strong fundamentals and a proven record of yields.
Plant with purpose
Are you after passive (or higher) income now, or targeting capital growth or development in five to 10 years? Do you want potential to live in the property eventually, or maximise your tax position? Do you understand how a new purchase may affect others down the track?
Clearly define your objectives and share them with your circle of trusted professionals. A well-laid plan will help you structure the right finance options, identify suitable properties and avoid getting swept up in bidding wars – this is not your dream home, after all.
Just as a gardener waits for the right weather to sow, savvy investors look for windows of opportunity. With lower interest rates, better serviceability, and steady prices, the ground is fertile—but only if you plant with care.
This winter, we’ll be enjoying a fabulous broccoli harvest, thanks to some excellent planning months ago. So, if you want a great result; talk to experts, understand your trade-offs, and set your sights firmly on the right actions to take to get there.
Keys to your house
