RE/MAX Latitude 36 September /
October
Understanding the Property Cycle
Clock
Timing and
recognising property market trends make all the difference in gaining the
maximum returns from any property investment.
A good
understanding of Real Estate Cycles will allow a prudent investor to take full
advantage of a “Growth” cycle whether they are a novice or a seasoned property
investor looking to expand or diversify their investment portfolio.
The property
clock below provides a clear indication of the Real Estate Cycles and exactly
where the New Zealand Property Market is positioned now.
Definition of Property
Cycles
BOOM: The height of the market of which we
are all familiar with!
SLIDE: The height of the market has been
reached and is now beginning to slide. The general market place is in denial.
Property values will drop by 10% this cycle normally lasts for one year.
BUST: The
declining market has now been realized. Property Sales, Values and the market
place has slowed significantly
OPPORTUNITY: We are now at the bottom
of the economic cycle. There are small sales volumes but "Great Value Buying!"
This is a Risk-Market but also an Opportunity-Market. A "Window" that will last
for approximately one year.
VALUE: A
significant part of the “Growth-Cycle” has now past. General market indicators
identify that Improvement is sure to happen and more is certain to follow! This
cycle can last for three years with feelings of hope and optimism!
HOT: All
Buyers now are Believers! This is a fantastic time to sell. You will pay a
“Premium” to purchase in this market. Prudent investors are now realizing
capital gains. The psychology here is one of thrill and excitement! this cycle
will last for one year.
ACTION
STEP: Identify exactly where the current opportunity is and always
remember, “TIMING IS EVERYTHING!”
Best Regards
Maree Clarke
areinz
RE/MAX Latitude 36 Broker /
Owner
IMPORTANT
ANNOUNCEMENT
NEW ZEALAND WARMLY WELCOMES DAVE
LINIGER
FUNDER
OF RE/MAX WORLDWIDE!
Dave Liniger is
well known and respected for his entrepreneurial, innovated and revolutionary
approach to Real Estate
In 1973, Dave Liniger was fairly fresh out of the U.S. Air
Force and not too far removed from his rural Indiana boyhood. He had found his
niche selling real estate and energized by the gratitude he received from the
families he helped.
But as he learned more about his profession, he realized,
"There's a better way to do this." Unable to find an office ready for his ideas,
he started RE/MAX as a one-agent office in Denver.
His dream was pretty big: Create a real estate
organization that any buyer or seller could approach anywhere in the world
knowing that only experienced, career-minded professionals worked there.
No part-timers. No dabblers. No wheeler-dealers.
The concept, strikingly simple in hindsight, caught on;
and the competition never caught up. RE/MAX grew from 21 agents in 1973 to more
than 100,000 by 2004. Today, the RE/MAX Balloon stands for trustworthy,
results-oriented real estate sales help in more than 70 countries.
RE/MAX Sales Associates help more families buy and sell
real estate every year than any other brokerage organization in the world. And
this Web site, the first of its kind to display all of the listings in thousands
of cities and towns, sets the pace for the industry.
And Liniger?
He's still in charge. And he inspires everybody in the
organization to keep thinking, "There's a better way to do this."
Welcome to New Zealand,
Dave!
From the Team at RE/MAX Latitude 36,
Albany, Auckland, New Zealand