Residential property investment is all the rage right now – but I know many of you are worried that it’s too late to get into the market. Here’s a quick snapshot why I think it’s not based on my experience working as a property manager and investor in Auckland over the last 10 years.
Currently there are 1.57million people in Auckland. It’s expected to reach 2.5million by 2040 with growth happening every year. Enough said!
Not enough houses
The housing shortage is well documented and has been talked to death – but it’s the old supply and demand rules…there isn’t enough supply so prices continue to rise. And will continue to do so until demand falls.
Unitary plan – won’t that fix it?
No. Not in the near future as there aren’t enough builders to execute all of the available work. I’ve heard a story of a 1-year wait just for concrete on the North Shore, and many of the lovely new apartments you see advertised haven’t secured builders for projects yet – there are not enough builders in existence! Try my theory – try and find a builder…oh and this is a great chance for me to plug our building service for renovation projects.
Prices continue to rise
There’s no arguing with results. I have friends who have been scared off investing in property because of talks of a “bubble” and over-inflated prices. And that was a year ago. They have missed the opportunity to make 12% in the last 12 months alone. Prices have risen 85% over the last four years, and who knows when it will stop. My bet is no time soon. NZ Herald is reporting that middle income earners are now locked out of the market; so if you can get in, get in now.
I’m not a financial advisor, so please form your own opinions when making investment decisions or speak to an advisor. We can point you in the right direction of some great ones. What I can do though is help you with your property investment once you’ve bought it by providing the best property management in Auckland – because an investment property requires proper care, tenanting and maintenance to make it work.
A property can’t look after itself like equities and funds can, and it can be quite a headache if you don’t get it right…BUT it’s very rewarding when you do!