After prices bottom out, the Reserve Bank forecast that house prices will increase by 11% over the following 2 years.

At the most recent NZ Property Investors Conference, economist Tony Alexander said that the market “has the capacity” to increase by 5% in 2023.

And after 7 months of consecutive house price fall, the latest REINZ data (released 2 days ago) showed that house prices increased by 0.2% in October.

The last point on cash flow…

I was keen to put cash flow examples in front of you last week because many people don’t know what the numbers look like in today’s market.

So, instead of hiding from them, I want to talk about them transparently.

Because you need to know: the risks, the negatives, and the positives to make an informed decision. And there are pros and cons in every market.

Right now, cashflow is the con.

But the positives are:

  • The capacity for near-term capital growth
  • Deals – properties are selling at lower prices than 12 months ago

And I appreciate that Darren got in touch. Because it’s important to be challenged on these assumptions too.

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Andrew Nicol

Managing Director, 20+ Years' Experience Investing In Property, Author & Host

Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.