For some time political parties have been suggesting offshore purchasers are locking Kiwis out of the property market. The new data collected by the IRD suggests otherwise. It says only 11 percent of property rentals were owned by non-residents.
Furthermore the non residents included ex-pat Kiwis. It’s a far-cry from what has been suggested by some politicians and the Labour party did say last year that it would restrict foreign ownership if they are elected.
The reality is the true percentage of foreign buyers is unknown by the data collected so far. The net increase may be as little as 3 percent once you take into consideration foreign owned property sales.
The good news is 90+ percent of rental properties are owned by onshore property investors. While the majority of onshore investors own one or two properties, the number of ‘professional investors’ is expanding and is set to continue irrespective of who’s in Government, though if Labour is elected squashes foreign ownership this would potentially open up more opportunity for property investors.
Sean Wood of PropertyTutors says:
“Interest in full time property investment is at record levels. Our mentoring groups comprise of employed, self employed and full time investors – the latter is growing and they repeat the mentoring program year in, year out.”
It will be interesting to learn the numbers for the last financial year and what other interesting facts can be prised from the IRD analysis.