Is it still a good time to invest?

I got an email yesterday from Karl. He reads this newsletter and is looking to buy his first investment property. 

He said: “There’s so much uncertainty in the world. Should I really be investing right now?”

Here’s what I told him:

#1 – There’s always a reason not to invest. The world never feels calm or certain. 

#2 – Uncertainty isn’t always bad – in this case, it might actually work in investors’ favour by lowering interest rates.

#3 – If you only plan to invest for a year. Don’t buy a house. If you’re investing for 15+ years, you’ll generally be ok. 

Here are NZ property prices across 11 different major economic impacts. What do you see?

Major events come and go. But if you’re in it for the long term, asset prices tend to go up over time. 

Buying an investment property isn’t just a decision. It’s a commitment. If it’s not near the top of your priority list, life will get in the way. 

And most people who ‘wait six months’ never circle back. Not because they change their mind – they just drift.

Here’s who should really worry about Trump’s tariffs

But whether you make an investment decision (or not) depends on your situation. 

If you own a vineyard in Blenheim and you sell Sauvignon Blanc into the States – the tariffs could impact you. 

Your US customers now have to pay more to import your wine. So, they might buy less or ask you to drop your prices.

Or, let’s say you’re in dairy. You export whey protein to a Chinese nutrition company. 

They blend up your protein and sell it as a sports supplement in the US. Well, even though you sell to China, you could still get hit if your customers get hit. 

But, if you work in a stable industry (like a bank), you make money from New Zealanders. The tariffs probably won’t impact you. 

If you own a local restaurant in Invercargill that serves Southland cheese rolls, you’re fine. You’re probably not that exposed to America anyway.