Saturday, May 22, 2010

Buy well, advises investor

There are plenty of courses about sales, but very little education about how to buy well, a leading property investor has told a Palmerston North audience.

"We've got to learn to buy better," Ron Hoy Fong said at a Manawatu Property Investors' Association meeting.

Mr Hoy Fong, who described himself as third-generation Kiwi Chinese, had a second crack at property investing from 2003 and his wealth was now at $10 million, he said.

He advocated buying at least one property a year.

Mr Hoy Fong, from Auckland, said there were three ways to make money from property – buying "wholesale", renovating to add value, and buying before a boom.

"If you start when the boom starts, it's too late."

He expected property values to double in the next decade.

Mr Hoy Fong told his audience to be wary of sales psychology.

Buyers at an auction should not go above the limit they had determined before getting there, he said.

A house that met its reserve was probably too expensive for a property investor, he said.

It was better to be the top bidder, under the reserve price, then negotiate. Buyers should also look for motivated sellers.

y GRANT MILLER - Manawatu Standard
Last updated 00:00 10/04/2010

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