At GRA we have become concerned at the number of people thinking about buying leaky buildings. This was brought to our attention in our capacity as Professional Trustee, which means we (along with any other trustees) need to sign off on any planned property purchases for the trust clients we act for.
We were concerned when we found out about the first person but became alarmed when, over a matter of weeks, we had multiple clients say they were planning to buy leaky homes. As explained in Property School and in Matthew Gilligan’s book Property 101, we consider leaky homes to be ‘property lemons’ which should be avoided at all costs. When we asked our clients why they wanted to buy leaky homes, they said that the Auckland property market is so expensive they are the only properties they can afford.
While we agree that leaky homes are certainly cheaper to buy, we disagree that they cost less in the long run. In fact, they are likely to cost purchasers significantly more and will quite possibly put them in a much worse position than before they bought them.
There are many reasons why you should avoid leaky buildings – and each of these reasons on its own should be enough to deter you. Combined, they are a financial disaster waiting to happen.Thanks Janet. I also want to say thank you so much for your books. I started reading Money Secrets last night - I have been wondering why I just haven't been dealing with stuff and been so stuck lately and your writing is bringing some clarity. So I will be shaking off the Rabbit ears and Ostrich feathers! -- and giving copies of the book to my nephew and niece. Cheers, Sue - Sue Pickernell-Crow, October 2018
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We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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