HOUSING MARKET IS SHINING FOR INVESTORS
A simple dynamic for our continuing strong housing market is that we have a shortage of housing (largely Auckland). The shortage is exacerbated by lack of construction of new homes and funding for developers. At the moment, the buzz word is Auckland but with people trading stories of being out-bid at auctions, investors are looking outside Auckland.
As low yields from other investments continue, more investors are looking for property. We are in early days of this property cycle, but watch for the retirees cashing up in Auckland and retiring in Tauranga, Whangarei, Taupo and Hawkes Bay.
Expectations are higher among property investors that average rents will increase over the next five years by 6% to 10% therefore, most investors are looking to ‘hold’ their properties and grow their portfolios.
– Craig Moffat, ANZ Regional Manager
Many new investors are entering the market and looking outside central Auckland so they can obtain the yields the need, when they are highly leveraged, areas like Papakura, Rotorua, New Plymouth and Invercargill.
Filed under: REAL ESTATE | Tagged: Real Estate