In a news item on interest.co.nz ASB Chief Economist Nick Tuffley says Auckland’s property market will remain cooler this year while the regions will continue to heat up. Since October 2015 property values have risen a lot in Waikato, Bay of Plenty and Northland due to investor activity.
Wellington has also seen quite a lot of interest recently from Auckland property investors which is putting pressure on the current low levels of property stock on the market.
The RBNZ new 70 percent lending rule on Auckland investment properties acquired from October 2015 is working insofar as it is reducing number of purchases by local buy and hold investors. It is however a short term fix rather than a solution that will curb property value growth long term.
Thousands of new properties are required in Auckland to bridge the gap between supply and demand. Our Property Masters investors mentored by Sean Wood In Auckland and Steve Goodey in Wellington are doing their bit to help the supply challenge by releasing on to the property market properties homebuyers can afford and want.
Typically our mentoring clients purchase properties that homebuyers consider unliveable. These properties are perfect for our investing model as they are in dire need of a complete renovation including all floor coverings, new kitchen bathroom, internal paintwork and then there’s the exterior to do too.
When refurbished these properties are still affordable and desired by homebuyers.
Property investing in 2016 will reward investors applying the right strategy to the right market.