Investing in residential property in New Zealand can be a big winner and there’s less to worry about than you might believe especially when you focus on the right requirements to firstly get the property and then how to manage it so it’s adding value i.e. equity and cashflow as a rental property.
Investing in Auckland apartments is a great way to get on the property ladder says a couple of property experts. Dave Windler of Mortgage Supply and long time apartment investor and mentor Grant Hoey agree there’s a lot more demand for Auckland apartments from first home buyers and it’s not just investors signing on for inner city apartments mentoring. Grant Hoey has provided his Auckland apartments mentoring service for over 10 years and says many of his clients are first-time buyers seeking support and guidance with the ever-growing apartment market.
It’s official the Auckland apartments market is the latest to compared to house and land packages in the regions and it’s thanks to growing demand and more options available many not just in the heart of the city.
Auckland can not bring new apartments online fast enough. Demand for the smaller abode is coming from everywhere. Migrants, offshore buyers, empty nesters downsizing, first home buyers and property investors are all vying for new or newly renovated apartments. The older apartments however are ignored by these buyers and picked up by Grant Hoey’s investor clients whom have enjoyed a profitable 2016 renovating these apartments for on-sale and often achieving the end to end deal in as little as four weeks.
The LVR restrictions have stopped many property investors in their tracks. However some investors have been using a strategy called The Property Staircase and getting amazing results. Property investment education has been on the rise since October 2016 and with demand comes supply. New property experts have popped onto the education scene offering seminar and mentoring services.
Property experts say investors need to push back when they get a ‘no’ from their bank and keep going until they get a ‘yes’. Investors shouldn’t give up at the first hurdle says Dave Windler of Mortgage Supply Company, as there are funding options available to them and there’s also plenty of property experts keen to assist with strategies that work in today’s market.
With ever-increasing costs, Landlords often wonder if they’re doing the right thing using a Property Manager, and it’s a topic that’s discussed a lot on PropertyTalk. Why pay for the service when they could do it and save hundreds of dollars every year per property? Well one reason to not do it yourself is all the rules and legislation. The use of property management firms is increasing due to the complexity of owning rental properties today.
Donald Trump is sworn in as President of the United States this week and the world as we know it will be a different place. Borrowing interest rates are rising and NZ banks are having to borrow more overseas to fund existing lending commitments according to this news item.
Predicting what the property market will do in the future has been the obsession of many property experts, commentators and investors for years. Right now their forecasts are so diverse we’re left with more questions than answers and this is causing more uncertainty especially among home buyers and property investors.
Property investors say it’s always a good time to invest in property. Property values rise and fall and buying conditions change. However property investors continue to do well in any market when they focus on the core investing fundamentals. Property investor mentors from PropertyTutors say their investor clients are risk averse and only invest in properties with strong numbers (yield & equity).
Property asking prices continue to drop in Taranaki. The downturn of their primary industries (oil, gas and diary) has made home buyers wary. The rest of the country has enjoyed months of capital gains except for Taranaki which has continued on a steady decline since August 2015 according to Trade Me Sales Price Index.
Banks have been given an extra month to process their back log of Pre-approvals therefore from 1 October all loans new and pre-approvals will need to adhere to the 60% LVR restriction rules. Yesterday the OCR moved to it’s lowest rate of two percent and the dollar rose more than a cent against the greenback. It could have gone lower too due to weak global conditions.
