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Investment Property Opportunities in New Zealand

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New Zealand has a vibrant property market that is attracting a lot of attention at the moment. The general trends of property investment stay relatively constant, but there are always fluctuations over the short term that can make trigger happy investors pull the plug. In this article, we will discuss some of the major investment opportunities and trends in New Zealand right now.

Rental Properties in Demand

Due to a perceived shift in the trajectory of housing prices, many investors have elected to reduce their portfolio size in recent years. This has increased the number of owner occupied houses across New Zealand, and reduced the quantity of rental properties on the market. This swing has led to a rapid increase in rent prices for urban city environments where there is continual population growth. It makes it a great time to be in the investment property game and to let the investments mature rather than being all about the quick flip.

Get the Right Advice

The best advice for any property investor is to do short and long term research on the area you are looking at buying property in. A good way to do this is to look at median housing prices over the last decade and median rents in the same neighbourhood. Talking to landlords can help too, as they have experience on the ground. It is never a bad time to invest in property with the overall trajectory of the market but there are peak troughs and highs in the short term. Compounding social issues can make some areas more attractive for short term or long term investors, and it is therefore important to have a strategy in place for your investment.

Fewer New Homes on the Market

The rise of owner occupied dwelling numbers has led to an increase in new homes and renovations, but increasingly these are places built to be lived in and not sold. As discussed in an earlier blog <link to page7>, older properties pose increased risks and new investors should be aware of the many potential shortfalls of investing in old houses and apartments.

Walker Weir can Manage Your Investment Property

Walker Weir are professional property managers based in Auckland. We have lots of local experience, are well connected in the industry and have our ear to the ground on property trends. If you own an investment apartment or house, we can help you lease it for the best price and manage the upkeep so you can focus on living your life. After all, what’s the point of an investment if you have to spend a lot of time maintaining it yourself? To find out more call us today on 22 657 9432 or contact us online.

August 20th, 2018

Everyone with money is looking for ways to make it work for them. It is well known that the easiest way to make money is investing, but with so many investment products out there it can be hard to decide what kind of investment is right for you. Some people favour the stock market, cryptocurrencies or bonds, but in this article, we will discuss the major benefits of investing in property.

People Need a Place to Live

Everybody needs a roof over their head. Whether it’s an apartment or a house, there is constant demand for housing. Because population is on the rise, there is also an increase in the number of people with a demand for housing. This makes the housing itself a limited commodity and helps to explain why housing prices have been increasing steadily for years. Everybody wants to own their own home, so the demand for rental properties is also increasing, and with that so are rental rates. Both of these factors combined show that the price of getting a roof over your head is increasing much faster than inflation, and it is therefore a good time to own property.

Risks of Property Investments

Every investment has accompanying risk and that of course includes property investments. When you buy your first building, chances are that you are doing so with the help of a mortgage from the bank. This is your first risk, which means you may not be able to meet the repayments and will have to forfeit your investment.

Another thing to be cautious of when investing in property is the age of the building. Old houses and old apartments will often require expensive repairs to make them marketable. It is one reason to always do the due diligence of organising a series of property and infrastructure inspections and reports before you purchase a property.

Outsource Property Management

Your investment property is an asset that is capable of continuously generating dividends in the form of rental payments. Because of this ongoing cash flow, it is possible to outsource the management of your property for a small fraction of this ongoing cash flow. This is a major bonus, as it means you will no longer need to go through the process of facilitating repairs, interviewing tenants or collecting rent.

You can outsource the whole set of responsibilities that usually goes with being a property owner, and sit back on a beach somewhere counting the money that comes back to you. Additionally, if the property management company is decent they will offer a rental income guarantee so that you will continue to get paid even if the tenant is experiencing financial difficulty.

Hire Walker Weir to Manage Your Investment Property

Walker Weir are experts at managing investment properties in Auckland. It is our business to protect the value of your investment and ensure it brings you solid and consistent returns. We gladly oversee the entire process of renting, from tenant selection to facilitating repairs and collecting rent. We even offer a rental income guarantee so that tenant cash flow problems don’t become your problems. Call us today on 022 657 9432 or contact us online.

August 13th, 2018

It can be difficult to know what kind of property is right for you. That’s true whether it comes to a property to live in or invest in. The first consideration of every home purchase is that it should be liveable, but beyond that there are dozens of potential pros and cons to every property. In this article, we will discuss the advantages and potential shortfalls of investing in apartments.

No Garden and a Body Corporate

A major advantage of apartments is that they don’t require as much maintenance as a house. There is no grass to mow and no roof to clean. The body corporate will charge fees, but in exchange will take care of all building and exterior maintenance.

However, this can also work against you in that changes to apartment appliances and structures may be opposed by the same organisation. It is therefore imperative that you are satisfied with the apartment as it is, rather than planning a series of renovations.

Neighbours

It’s a fact of the Auckland Unitary Plan and more high density living in the offing that neighbours are getting closer together. This can be an issue whether you plan to live in your apartment yourself or in the more likely event of planning to lease it. It is worth investigating the reputation of the building you propose to invest in, not just the interior of the apartment itself. A great way to do this is to review the body corporate minutes.  For one thing, buildings with poor reputations attract lower rents. For another, they are more likely to have inter-tenant complaints which can be a hassle for landlords. You can get information on the building by researching the body corporate that manages it.

Location

The most important value determining factor of apartments is location. Apartments in rapidly expanding areas are likely to offer substantial capital returns over a few years. People are willing to pay more to live closer to where they work, and with the way that property and rent prices have been increasing over the last few years, sometimes investing in apartments is a good way to get your foot in the investment property door.

Age of the Building

Unfortunately, most apartment buildings do not age well. While some age and become neighbourhood institutions, others gain chronic conditions and fall into varying states of disrepair. Major repairs and renovations are difficult and complicated when you need to organise several disparate renters who are just trying to get on with their lives. For this reason, if you are looking to invest in an apartment think seriously about how old it is and how many years you are intending to hold onto your investment.

Contact Walker Weir to Manage your Investment Apartment

Walker Weir are highly experienced and reliable property managers in Auckland. We manage all kinds of properties and can oversee the entire process of renting, from tenant selection to hiring tradespeople for repairs. We even offer a rental income guarantee. Call us today on 022 657 9432or contact us online.

August 6th, 2018
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