Here’s a half decent article on the subject from Bruce Shepherd, immediate former head cheese of the NZ Shareholders Association.

He focuses on ‘yeild’ as being the key criteria for figuring out whether to buy a property or not and reckons the purchase decision is much the same as when you buy shares. Capital gain, he says, is more or less a bonus and not something to be relied on. Can’t agree more, especially in the current environment. Liquidity is another issue tackled which is not always fully appreciated by most people contemplating getting into property investment. And while Bruce might not want us to say ‘that’s great advice’, frankly, it is. Have a read and let us know your thoughts. CH

http://www.stuff.co.nz/business/blogs/stirring-the-pot/3994394/Investing-in-property-as-a-business