An unseen investment

Your best investment opportunity might not be just out your front door, yet travelling across New Zealand to inspect a property may not be an option either. So, is buying sight unseen a wise decision?

Magnifying glass view of property
  • 27 June, 2018
  • PROPERTY MANAGEMENT
  • Investment Property, Investors

Smart investors look for opportunities anywhere.  If they are in search of both capital growth and positive cash flow, many investors look well beyond their own backyard. They look at other cities and suburbs, including regional centres with strong fundamental growth drivers.

How to minimize your risk?

Buying sight unseen is considered a risky strategy, however many investors continue to make a lot of money using this approach.  So how can you minimise your risk?  The answer is doing your research and thorough due diligence.

Property investment is now much like buying shares. Although you might not sit in the boardroom of the company, you undoubtedly conduct comprehensive research and analysis.

The same applies to buying a property sight unseen.  Fortunately, there are so many online resources it has given us improved access to other property markets.  You can easily review and analyse local market reports, council zoning regulations, recent capital growth and current vacancy rates to create an overall understanding of the market you are looking at investing in.

With proper research you can pick the market, pick the locality and pick the entry point. Fail to do your research thoroughly however, and you won’t get a full understanding for a local market - regardless of location.

Smart investors look for opportunities anywhere.  If they are in search of both capital growth and positive cash flow, many investors look well beyond their own backyard. They look at other cities and suburbs, including regional centres with strong fundamental growth drivers.

LJ Hooker NZ

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