When markets are booming, it’s easy to feel confident. Prices surge, competition is fierce, and optimism is everywhere, right alongside FOMO.

But with property investing, the greatest opportunities often appear when buyer sentiment is low – not when it’s high.

Countercyclical investing is the strategy of buying residential property during market downturns, and has proven time and again to be a powerful way to build long-term wealth. In New Zealand right now, it’s a power move you don’t want to sleep on. In quieter markets like this, buyers have the time and space to act strategically rather than emotionally.

Secret weapon

In times of uncertainty, buyers and sellers get nervous. Prices stagnate or fall. Competition from other buyers is low. Suddenly, the homes you couldn’t touch a few years ago are within reach, and you call the shots at the negotiation table. It’s called a “buyer’s market” for a reason. In short: when fear is high, opportunity is higher.

Buying when prices are stable or falling means you can negotiate better deals, resulting in a smaller mortgage and higher rental returns. Countercyclical investing isn’t just about buying cheaper, it’s about achieving better financial performance from the start. Lower property prices naturally improve rental yields.

Real growth is inevitable

Market volatility, media commentary, interest-rate uncertainty – it’s all noise over the long run.

Buying when others aren’t, turbocharges your growth when the cycle turns.

Investing during a slump accelerates the compounding effect of property wealth. By entering at a low point in the cycle, investors amplify their gains as the market inevitably recovers.

After every downturn, there is always a recovery, followed by another boom. It’s called the property cycle. The best part is you don’t even have to time the market perfectly!

As long as you are buying a property that suits your financial position and long-term goals, (because property investing is a long-term strategy after all), you will reap the rewards.

Investors that hesitate in the current market, will undoubtedly look back with regret in a few short years from now. Investors who maintain a clear, fact-based perspective – focusing on fundamentals like location, yield, and growth drivers – are the ones who seize the opportunities that fear creates.

What are you waiting for?

Interest rates are already below the long-term average and are expected to continue to fall over the next few months. Bank lending criteria has relaxed significantly, meaning it’s easier to get a mortgage now than it has been for years.

We currently have a very balanced market in most parts of New Zealand. More buyers have started entering the market, but we have also seen a large increase in listings. With the number of people still worried about their job security (since the economy is not showing strong signs of growth yet) my thoughts are that this buyer’s market might be here for several more months. If you want to build serious wealth, don’t follow the crowd. Buy when others hesitate.

Final thoughts

Countercyclical investing requires confidence, and a long-term vision – but for those who are prepared, the rewards can be significant. In today’s softer market, opportunities are not just available; they are abundant.

The question is whether you’re ready to move when others hold back. The next boom will come – and those who move first can win big. The best opportunities are currently hiding in plain sight, right now. Your future self will thank you.

If you want to learn more about the current property market and how to become a successful property investor (without anyone trying to sell you a property), join me at one of our upcoming FREE online events. Register at propertyapprentice.co.nz

Property Apprentice is the market leader in property investment advice. It is run by experienced coaches and financial advisers to give you the best support possible, to help you realise your goal of financial freedom. Visit propertyapprentice.co.nz, email info@propertyapprentice.co.nz or call 09 575 7736.