Now could be a good time for both first home buyers and long-term investors to make a move.

Home buyers should be aware that competition from investors is limited right now. High interest rates have escalated the costs associated with owning rental property, pushing many potential investors to the sidelines. And despite tax changes reverting back to fair taxation, where property investors are taxed on profit rather than revenue, I don’t foresee a rush of investors flooding the market. Many are cautious, aware that future governments could reintroduce unfair anti-landlord tax structures aimed at curbing property investment.  This reduction in competition provides a unique window for home buyers to enter the market.

For investors with a long-term outlook, there may still be opportunities to buy, but you have to be very selective. With a lot of stock lingering on the market, some vendors will be prepared to be more flexible with their selling prices due to inevitable life changes like relocation or downsising, they make have had their property on the market for some time and just want to move on. You may be able to negotiate a purchase price that compensates you for the higher interest rates you’ll currently have to pay.

Whether you’re a first-time buyer eager to step onto the property ladder or an investor planning for the long haul, this could be a good time to buy.  Just be aware that we may be in a higher for long inflation and interest rate environment.  While interest rates may come off somewhat later in the year, I’d be surprised to see large drops in interest rates.  We are moving into a multi-polar world where countries are trading in blocks, The West vs BRICS, which is leading to higher prices as the location for manufacturing is no longer decided simply by the lowest cost.  Globally we are moving to war environment, not something we really notice in New Zealand, but it’s one of the reasons for our cost of living rising, along with the previous governments mismanagement of the economy.

If you do plan on buying, make sure you have a good cash buffer to assist you in the case of rising interest rates, further rises in rates and insurance, or other unexpected events.

I’m still majority invested in real estate. I think hard assets are extremely important today as all around world governments are printing money to cover their costs leading to inflation, this silent tax that erodes your wealth if you don’t own real physical assets like real estate, stocks, precious metals, artwork, classic cars etc..

Over the next decade we’re likely to see huge amounts of change from AI to World Wars. Solid investments grounded in physical value could be the key for sustaining and growing wealth.