Andrew Nicol: What's so special about investing in real estate?

Andrew Nicol: What's so special about investing in real estate? After all, equities perform better in the longer term so why would you bother at all? Perhaps it's the ease at which it can be done, the tangible nature of this asset class, or this marvelous thing called 'leverage'.
Andrew, founder of Opes Partners, catches up with host Darcy Ungaro to explore what makes real estate a terrific asset class to participate in. Now real estate isn't for everyone and just like Nutella, it's only part of a well balanced investment plan. Being something that you can touch and feel (and live in!) makes real estate a very natural fit for many, but there are traps that catch young players out: Do you buy for 'yield' or do you buy for 'capital growth'; Buy in a major city or out in an 'up and coming' area; Buy pre-existing or buy brand new - go it alone or employ the expertise of someone to coach you through the process?
Leverage, or the act of multiplying market movements (or or down), is what has historical made investing in real estate so lucrative for many already. Lenders, the one who make this leverage possible, are subject to rules and restrictions around how they can do their thing, and so keeping up to date around the changes and potential loopholes are critical, especially in this current environment.
Like any adviser, you need to understand what motivates them and what effectively 'flavors' their advice they provide - we all have bias and we're all selling something let's be honest -but by far the simplest test to put an adviser through is this: would they smoke their own crack? Andrew would, and he does, being a seasoned and passionate property investor himself he shares some mistakes and some successes along the way which can benefit the everyday investor if this is a path they choose to go down.
Andrew Nicol // Opes Partners
https://www.opespartners.co.nz/
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Where to find Darcy Ungaro:
Ungaro &Co (registered) financial advisers https://www.ungaro.co.nz
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