Private Property – our weekly newsletter that gives you insights into what's happening in the NZ property market. Written by managing director Andrew Nicol. Sign up to receive this in your inbox every Thursday.
After last week’s newsletter, a reader contacted me:
“It sounds like you're actively encouraging buying property with up to $20k negative cashflow … with a very subtle assumption rates don't go higher than 6.5%.”
“I'm no expert, but that sounds pretty sketchy … Sure, some people will have the resources to take that risk with the assumption prices increase, but I'm assuming most don't.”
– Darren
I get it. Today's cash flow (for a property bought with 100% lending) is terrible.
But the purpose of this newsletter isn’t to convince you that now is the right time for you to buy.
That’s up to you and your financial adviser. Instead, this newsletter aims to show you both the opportunities and drawbacks of the current market.
Let me respectfully address some of Darren’s genuine points.