Phew – it’s all over! 2020 was certainly memorable (not necessarily for the best reasons), but a new year is here and it’s time to make it work for us! Property continues to be one of the best investments you can make in New Zealand, but only if you set the right goals. 

Here are a few of my favourite suggestions:

1. Buy a property

The property market has gone bananas because of COVID-19 and if the last few months are anything to go by, there seems to be little chance of it cooling down anytime soon. 

If you want to get your slice of the 15% YoY gains predicted by Westpac, 2021 could be the time to buy.

2. Pay down your mortgage

If you’ve already got a solid property portfolio, now is a great time to pay down debt. Decreasing your mortgage not only decreases the amount of interest you’ll pay in the long run, but will also allow you to leverage more in the future – particularly if the Reserve Bank re-implements the loan-to-value ratios in March.

3. Leverage into an investment

Equity-rich but asset-poor? Leverage the strong capital gains you’ve seen over the last few years and continue to build your portfolio. With the right lender and the right loan, you won’t need a cash deposit to grow your wealth – just use the existing equity in your portfolio instead!

4. Reassess your investments

Not every great investment stays that way. Take the time to reassess your investments and needle out the ones that simply aren’t performing. You may have rental properties in need of revitalisation to attract a higher rent, or perhaps you have an investment property that might have stronger performance after a subdivision. Stay on top of your investments to stay on top of your wealth growth!

5. Buy a new build

Let’s face it: New Zealand has a residential property supply problem. It’s one of the reasons why prices have gone through the roof. A very desirable product without much supply is always going to fetch high prices! You can take advantage of this and help alleviate the lack-of-supply issues by contributing to an off-the-plan development. Building new builds wealth!

2020 was a heck of a year – we certainly lived through ‘interesting times’. But 2021 is here, and with it comes a heap of new opportunities in the property market. How will you take advantage?