The huge property value growth has sparked a lot of talk lately about increasing rents and some journos have gone as far as to say Landlords are exploiting the housing shortage.
Auckland apartment living and investing is on trend. It has been nicely helped along by the massive growth in standalone residential property values and the continuing RBNZ LVR restriction which has locked out many first home buyers.
The low end property market has experienced small increases in value growth so there’s an opportunity right now for first home buyers and banks are showing them how to prepare for a low deposit loan. Property investors are usually in the firing line for all the wrong reasons however the low property value growth is due to their higher than usual market share of low end property sales.
The festive season is over but the good times keep rolling on in New Zealand.
Our economy is doing well and predicted to continue to do so in 2015. With our low interest rates too the property market is expected to perform well over the next 12 months and this is good news for property investors nationwide.
Outside of Auckland Christchurch is the clear winner with property values above the norm in many areas. We’re all used to hearing about the heady values of Auckland properties however Christchurch should also be on our radar.
Christchurch property owners secured an average increase in value of 4.3 percent in October 2014 and 3.7 percent in November 2014.
More properties are rented now than ever before and there is demand for affordable high quality professional property management services. In the early days of property investment investors naturally managed their own rental properties and they pretty much did so without much external influence.
Homeowners with tens of thousands of dollars of ‘new’ equity in their own property may be keen to spend it! Some may look at big toys like a flash car or a boat. If they consider using it for a second property ideally that will be an investment property rather than a holiday home. An investment property produces an income and when rented well it can also produce a profit (income minus expenses).
There are experts who prefer property over shares though you’d be forgiven for not knowing any by name.
We can all probably name at least three to five experts who love to diss property and push their bias – shares. In an ideal world there would be an equal number of property experts names rolling off our tongues too.
The holiday season is just around the corner and a ‘Bach for Christmas’ is now firmly in the sights of some property owners looking to spend their newfound home equity.
The average property increase in Auckland since 2011 is 34 percent and homeowners are ‘doing the numbers’ and finding ways to spend up.
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There’s been a lot of commentary pre and post Election on New Zealand’s lack of housing in the main centres and in particular Auckland. In fact we now believe we can ride a huge building wave for years to come before supply meets demand and our economy is going to ride along with it.
With housing affordability at an all time low, commentators are now suggesting New Zealanders need to consider renting long term as their new norm.
Embrace renting long term maybe even for life and invest elsewhere away from housing suggests a leading Economist.