Successful property investors have a few traits in common and not just with each other but also with professional sports and career professionals. While most of us look for shortcuts, arguably successful property investors want to learn and improve their systems by completing the entire process. Their obsessive attention to detail motivates them to analyse, learn, develop skills and acumen they can use time and time again so they achieve better results every time. Practice makes perfect is their motto.
Renting is a choice for many people who just don’t want the hassles of homeownership and their lifestyle doesn’t suit it. There is a rise in single households too, so owning the kiwi dream of a typical three bed standalone in suburbia is not on their radar now nor any time in the future.
There are professions that require extensive travel and with today’s global economy people are a lot more transient, moving cities, countries at very short notice.
News of high numbers of property sales to Chinese ‘surnames’ has created a hot potato in political circles and it’s all the talk with property investors on PropertyTalk.com.
Depending on your point of view, clamping down on foreign ownership is either a necessity so Kiwis get into homeownership or the start of economic woes with our largest trading partner.
All eyes are now on the rental property market and the remarkable shift from homeownership by the age of thirty, to living in rented accommodation long term.
The question now being asked by many commentators is: Does the Residential Tenancies Act 1986 (the Act) support long term renters or is it only good for the ‘flatters’?
Baby boomers particularly those currently living in Auckland may be setting their sights on Nelson and who would blame them. Nelson offers the perfect lifestyle with a mediterranean climate, idyllic nature walks, sandy beaches, culinary delights and of course it’s one the cultural arts capitals of New Zealand too.
Odds are on for a substantial drop in the OCR rate over the coming months and banks are suggesting it could get as low as 2.5% by October.
Floating rates are likely to follow suit which is good news for borrowers who haven’t fixed their loans. It’s bad news for depositors however and anyone relying on the interest income.
Back in February we got a look at a housing factory in Lower Hutt. It pre-builds homes for under $200K. The homes are built in modules so more or less can be added to create larger or small homes. Imagine securing a four bedroom home for just $195K – a couple in their twenties did so and the home moved onto their Whitby section in Wellington.
It’s official the Taxation (Land Information and Offshore Persons Information) Bill has been introduced into Parliament. The new law will see Land Information and Inland Revenue share the data collected on offshore residents. It may prove very useful in determining to what degree NZ real estate is used to launder money acquired from criminal activity.
New Zealand needs to improve the rights and conditions for tenants and landlords. Renting for decades may become the norm for people living in Auckland and for anyone with goals that don’t include owning their own home.
Major Banks may reduce the deposit required for buying an Apartment. Currently a twenty percent deposit is required and this could drop back to fifteen percent. The focus of the move is on home ownership not investment and it should attract more first home buyers into the property market.
In an ideal world New Zealand’s rental properties would be fit for royalty. We know New Zealand is where so many foreigners want to live and there’s no denying it’s outright beauty so why are so many of our rental properties only fit for the third world?
More New Zealanders are renting today than ever before and they will remain in rented accommodation longer than desired. Their first taste of home ownership is likely to be an investment property which they’ll rent out while they too remain as tenants in another landlord’s property.