House party back on - for lucky few

With another official cash rate cut expected next week, experienced and less-seasoned property investors are looking at the housing market and seeing more reasons to buy.

And conditions will only improve. BNZ chief economist Tony Alexander expects the rate will get to just 2 per cent by the middle of the year. He also forecasts that real estate sales have almost reached their weakest level.

Longtime property investor and Acumen financial adviser Lisa Dudson is calling this the best market for property investment that she has seen in seven or eight years. It is now possible to buy positive cashflow properties - properties whose rent will cover the main expenses, such as the mortgage.

The only problem is persuading the bank to lend you money, Dudson says.

In this market there is a new set of rules, and investors are borrowing some tricks from the United States.

To read the full NZ Herald story click here

Posted: 9 Mar 2008

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