Things are Looking Up

Things are certainly looking up for landlords at the moment.

  • Yes, there are more rentals available at this time than we have been used to over recent years. But that shouldn’t cause concern for those landlords with quality rentals. Tenants have more choice but they will always lean towards a ‘nicer’ property if they have options. 
  • Yes, residential property values are falling – but read the fine print. What the commentators are really saying is that the rate of growth is falling. Unless you have purchased a home over the past 6 months you will not have lost equity. Even if you have unless you need to resell your equity will bounce back. Real estate always has it cycles. Across the country prices are still up over 20% when compared to 2020.
  •  Yes, lower prices may attract more first home buyers into the market. But lower prices have been offset by higher interest rates so in fact they are no further ahead.
  • Yes, border restrictions are being lifted which should result in more foreign students, more key foreign workers, more immigration, more demand for rental property. 32,556 work visas were issued in May.
  • Yes, rents are slowly increasing (though it is hard to get a real view on this as rents can now only be increased annually so obviously increases will be higher). This is enabling investors to get a slightly better return or to offset the significantly higher operating expenses that they are faced with – rates, insurance, maintenance as examples.
  • And yes, although new house building is running high it is still far behind the demand. Material shortages and rising prices and the dubious actions of some developers are creating uncertainty amongst buyers and many are choosing to remain as tenants until the market stabilises.

In our view this may well be a good combination of market forces if you are considering increasing your rental portfolio. If you are, please remember we are more than happy to advise you on things like preferred areas, style of property, size, healthy homes standards, potential rental levels and such. Please just ask.