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Location Location Location?

Contributor:
Rebekah Joy
Rebekah Joy

 The old saying 'location location location' has rung true in the ears of New Zealanders for decades. Be careful where you buy, and other such outdated idologies such as 'buy the worst house on the best street.'  Your grand parents would have told your parents, and your parents would have told you that this is the best ways to buy real estate. BUT with the current climate, massive immigration, buying the best house in the worst street could be a lucrative investment strategy.

The simple fact is, New Zealand is running out of houses. Policies on over the top resource consents and permits add to the fact that fewer homes are being built. A few years ago people were buying up places willy nilly, every tom, dick and harry became a DIYer, some of Auckland's grottiest state homes became luxuray pads. Getting on the property ladder become something of an obsession and a great way to make money. Watch the show Location Location Location and see how many people own five, six or seven homes. Unfortuneatly the philiosphy of 'property as investment' drives the market and the cost of living up. In reality houses should be for living in.

Buying in less desirable areas, could eventually mean a larger profit, but investors would have to hold on to the property until the rest of the community has seen the light. Take into consideration school zoning, neighbours, amenities and social inforstructure before taking the plunge.

The simple fact is, this is not just a New Zealand trend. Worldwide less desireable areas are being regenerated. Previously undesirable areas within east London are experiencing a massive surge of interest due to  the 2012 London Olympics. In Sydney close proximity to the city has seen the former Aboriginal suburb of Redfern take on a new lease of life and I suppose everybody is familiar with the growing popularity and expense of Harlem in Manhatten. While these examples are a far cry from small town New Zealand, they all bear similar success patterns.

As New Zealand is running out of cheaper accommodation, could buying up in the worst street prove to be lucrative?

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