property investment


PHOTO: FIONA GOODALL/GETTY IMAGES You’ll need to consider how attractive a potential investment property will be to prospective tenants, says Kevin Lampen-Smith.

Q: My partner and I moved cities a couple of years ago and soon realised that the proceeds from selling our house weren’t going to be enough to buy a place in our new city. We’ve been renting ever since, watching as prices have gone ever higher. Now it looks like that rise is slowing a bit and we are thinking about buying a smaller property or an apartment as an investment while we continue to rent. The latest drop in interest rates has made us think that now is a good time, but we’ve never done this before and we’re getting conflicting advice from friends and family. What should we know before we take this step?

A: There’s never the “perfect” time to buy a property, as anyone who has ever bought one will tell you. Life circumstances can change, the economy can surge or falter – it would be a rare person who thought they had chosen the best possible moment to make such a monumental decision.