Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Property investors provide a service and fill the gap

Property investors provide a service and fill the gap.

The census document NZ in Profile 2014 and the findings of the BNZ/REINZ Residential Market Survey hint at a disturbing trend regarding home ownership in this country. Overall the residential market is improving compared with the findings of the previous BNZ/REINZ survey. However, potential first home buyers are still feeling the effects of the Reserve Bank’s LVR policy and many are reluctant to take the first step on to the property ladder. On the other hand, real estate agents are reporting that investor interest is strong and estimated sales to investors stand at over 19% compared with 18.5% nearly a year ago.

The census results show a fall in home ownership rate from 66.9% in the 2006 census to 64.8%. A recent NZPIF study into the cost of renting rather than owning the average NZ home shows that renting makes good financial sense at present. The study conducted for the December 2013 quarter showed that it is currently $138pw cheaper to rent than own the average NZ home. Renting has been cheaper than owning for many years and is another compelling reason encouraging people to choose renting over home ownership.

It is timely that investors are stepping in to purchase residential properties and provide rental homes for those who are unable or unwilling to purchase their own.

“Property investors are providing a service”, said Andrew King, Executive Officer of the NZ Property Investors’ Federation (NZPIF). “Like any other service providers, these property investors know they need to provide good quality homes. It is important that new investors learn about the business of being a landlord. Many of the programmes of the property investors’ associations affiliated to the NZPIF are educational in nature, assisting members to manage their property portfolios for the benefit of the tenants and the landlords. We recommend that more property investors become involved in these programmes.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news