We came across a couple of newsletters on the NZ Property Investors federation website that you may find interesting.
1)
The world of property investment is a dynamic landscape, influenced by shifting markets, emerging technologies, evolving regulations, changing societal needs and – politics! In this environment of transformation, it’s important for us to unite, share knowledge, and collaborate to navigate the complexities and seize the opportunities that lie ahead.
When I became an ‘accidental’ President just under 12 months ago there were many questions that I asked myself. The biggest one of all is the one we all share. While money may seem like a driving force in our investing journey, there are more noble motivations at play. Are we making our world a better place in our pursuit of a better lifestyle for ourselves and our families?
I challenge you to ask yourself as a property investor ‘what is it you really want’? Your initial response may be a property portfolio of some sort, but that is a very superficial response. It’s important to dig deeper and start working on your “why” and what you are really hoping that property investing will do for you.
The expected and usual response is to have financial freedom. But really it is not about the next property, but in fact something far more important… having choices.
Human history is full of examples of cooperation, collaboration and care, and that is our natural disposition – not competition and the exclusive pursuit of self-interest. Many traditional communities have survived because of deeply rooted, socially structured cooperation. For example, Maori tribal groupings are particularly good at greetings, connections to the land and people that continue to stand them well. These are worthy values we share. And every Property Investor Association in the country is a perfect example of valuable cooperation.
We are facing an epic housing shortage over the coming years for multiple reasons including fewer investors, but also due to immigration which will be reinforced in the future by immigration and climate change.
Despite the challenges of recent years with escalating costs and new taxes to pay there has actually never been a more needed time to own residential rentals and you are answering one of society’s greatest needs: for a roof over the head of our population. And if you are a member of a Property Investor Association you are doing it in the best way possible. That is through networking with like-minded people, increasing knowledge and impartial advice and by understanding the rules and the marketplace you are operating in. By joining up with others you are striving to be the best you can on behalf of the tenants you provide a home for.
In our country private investors provide just over 85% of all rental housing so our members and others are essential. In the last year having spoken with many members it impresses me how much our members care about their tenants. Meeting the requirements of Healthy Homes was never a big issue as we are the people who took opportunities to improve our properties and make them appealing to the best of tenants.
Most successful people define their success with happiness, inner peace, and positive contributions – much more than money. Think about your way and make the small and big changes to keep you on track to define your own success.
Rather than define your success with money, consider how that money makes our world a better place. We are happier because of what it enables us to:
- Have more experiences
- Spend more on others
- Have things to look forward to
- Own our future.
Above all we have made our own luck and therefore have choices in life, all the while being good stewards of our homes and tenants.
2)
This is an exciting year to be parting of New Zealand’s rental housing industry. While there are constant challenges investing in ‘bricks and mortar’ rental homes, the importance of our place in the system is crucial. The demand on housing is ever increasing post Covid, with high levels of immigration and record interest in moving to New Zealand. We know that climate change is going to increase people shifting to cooler climates, and it will be hard to keep the borders closed on refugees.
Before Christmas, Housing First, a social housing provider in Christchurch invited me to a breakfast with other owners. It was a pleasure to see several Canterbury Property Investor Association members also there, as we heard about the great work these agencies do. And this is repeated around the country.
Many owners find there is the satisfaction of meeting housing needs, alongside the convenience of having competent managers take care of their rental is a good solution for their investing. The added incentive in recent times is having tax deductibility allowed on the rental providing this type of housing. One of the barriers has been insurance as not all companies will cover social housing as tenants. Sometimes education is needed of the care the managers take to cover the risk of damage. It is only really an issue if the property has to change providers as this is more difficult than ever.
The public private partnership and spirit of collaboration are visible in a very positive way through the connections. The removal of tax deductibility, rising expenses and other risks associated with owning rental housing has changed many owners’ future plans. It’s a good time to review your investing, and considering social housing is a viable option for some rental investments.