The types of properties gaining the most in value around the country right now are units, apartments and townhouses. These properties are typically smaller than your standalone three bedroom property and generally cheaper too so they’re highly sought after by property investors investing for yield.
The standalone properties in need of refurbishment however are highly sought after by property traders and there’s plenty of these property around so it’s ‘business as usual’ says Sean Wood and Steve Goodey of PropertyTutors. Their property trading mentoring business is at full capacity despite restrictions imposed on investors and that’s due to the robustness of their operating model which has remained the same for well over a decade.
The renovated properties churned out by PropertyTutors mentoring clients are also adding to supply, in Auckland and Wellington where both regions have a shortage of properties for sale. First home buyers are well represented among the buyers too so further restrictions on investors probably won’t adversely affect this business.
May 16 versus May 15 asking prices according to Trade Me Sales Price Index show double-digit growth in Units and Apartments in Wellington and Units and Townhouses in Auckland. The average asking price for a Unit in Wellington in May 16 was $307,350 – an increase of 11.8% and in Auckland, the average asking price for a Townhouse rose by 15.3% to $790,100.
The question many property investors are asking right now is: How will Brexit affect property investors? One investor on PropertyTalk says the drop in interest rates may offset any interest rate increase on investor lending so it could be status quo for investors while homeowners benefit from lower rates.
This blog article was written for PropertyBlogs by Mobilize Mail.