Two Key Things Making The Regions And Baches Doable
With the country’s real estate market still roaring along much is attributed to the lack of housing supply and record-low interest rates. One real estate boss, however, says two other key factors are also adding fuel to the fire.
Owner of Century 21 New Zealand, Derryn Mayne, says the growing acceptance of remote working and the arrival of holiday home management and marketing companies have made living in the regions and buying a bach much more achievable.
“Companies like Bookabach, Bachcare and Airbnb have meant more families can now service a second mortgage, thanks to a good income stream many holiday houses can now attract. Further, with the borders largely shut, strong domestic tourism has only boosted the appeal of owning a bach you can casually rent out,” says Ms Mayne.
The Century 21 leader says, likewise, going to a coastal, river or lake property is now more viable for holidaymakers as mum, dad or both can often still work if Wi-Fi’s available.
“Covid has seen more Kiwis exploring their own backyard, but it has also fast-tracked companies and organisations’ digital enablement and acceptance. In short, employers and employees have got used to working from home and that has changed people’s mindsets as to where they can live,” says Ms Mayne.
She says REINZ’s monthly statistics on median house price sales have been incredibly strong for regional New Zealand, driven partly by city-dwellers seeking an easier lifestyle adding to local demand.
“Century 21 is seeing people move from Auckland and Hamilton to places like Te Awamutu, Tuakau, and Huntly. We’re seeing Wellington families moving to the Kapiti Coast, Palmerston North and Whanganui. It’s not because the parents have found new jobs. Rather, it’s because they can keep their old one!”
Businesses too have adapted to greater use of outside consultants and contractors, meaning more Kiwis mid-career are throwing in the office job to work from home self-employed.
“A decade or two ago Kiwis would do a bit of could consulting or contracting towards the end of their working life or when their kids were pre-school. Now, we’re seeing many more Kiwis working from home mid-career and mid-life.
“Greater flexibility around work has been a key factor in the regions’ strong real estate resurgence. At the same time, causal rental income has delivered the beach house dream to many more. All said and done, these changes have provided greater opportunities for many Kiwis and that’s positive,” says Derryn Mayne.