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 021 900 644 or contact us online.