So you don’t get as many ups and downs. That does two things.
#1 – You’re less likely to give up.
People stop investing in property when things get too hard.
Let’s say you were only investing in Gisborne in 2007. You would have had almost 10 years of a flat market.
At that point, you might think: "Nah, property investing isn't for me".
But what if you've got another property in a region that’s going gangbusters?
You're more likely to hold your nerve.
#2 – It helps you grow your portfolio.
Let's say one market is down, but the other is up. You may be able to borrow against the better-performing property.
You can use some of that money to buy another investment property.
Bottom line: If you only buy in one region, you’re more at the mercy of what one market is doing at any one time.
Buying around the country (diversifying) evens out your returns. That way, your portfolio grows more consistently.
This keeps your wealth more in line with the overall property market. It smoothes out the bumps.