A quick guide on how to seize the opportunity!

Landlords! Opportunity is knocking and you are missing it!

We have all seen the headlines. Teachers forced to bunk in with their bosses, over 10,000 households waiting for public housing, up from 4530 the same time last year. We have even seen disturbing headlines such as ‘sex for rent’. Almost daily now, we see stories across New Zealand of people struggling to secure rental properties and rising rents forcing people out of their homes.

It would appear that too many property investors have their focus the wrong way round. While at the moment, it would appear that property investment is becoming a little too hard, now, more than ever, it’s time to be excited about being a landlord! In the middle of every difficult situation lies opportunity, and opportunity is here. Will you capitalise? Or will you, like many others, miss the opportunity? What are we talking about? This is our quick guide to why property investment is exciting to be involved in now more than ever, and how you can snatch the opportunity for yourself!

More properties will be available to purchase

It is no secret that there has been a lot of change for property investors in the past three years, including legislation and market changes to name just a few. For many, it is time to cash in the chips before it all gets a little bit too hard. This means that very good investment opportunities will be coming to the market for sale. More opportunities to add to your portfolio could mean growth, quickly. You should be excited about the opportunity to increase your portfolio. After all, the goal is to improve your position right?

Rents will continue to rise

Not only will you find more properties on the market, but with the changes in legislation calling for more work on the part of the landlord and certainly more expense in the short term, the general consensus of the market is that prices will rise. Renters can expect to pay more per week as landlords seek to recoup costs incurred as part of the change. Rents will go up and this will only look positive on your balance sheets come the end of the year!

The work you have to do isn’t that hard

If we’re honest, the work that landlord’s are being asked to do isn’t all that difficult. Install insulation to a reasonable standard. Provide a heater in the living room. Make your properties safe, warm and dry. Seems elementary doesn’t it? Not only is the work that you’re being asked to do not all that difficult but, if landlords are selling off their investment properties with a mind of achieving the best possible sale price, it would be expected that they will have gone at least some of the way to meeting the minimum criteria required so as to entice more purchasers. You may not have to do any work at all!

Tenants are staying longer

The average period of a tenancy in Wellington is roughly two and a half years. This is echoed throughout most of the country. Why? Because the changes in legislation are making properties nicer places to live. Tenants want somewhere that they can call home and don’t want to be jumping from flat to flat, house to house every year. Likewise, the summertime property rush is arduous on tenants, so why bother? A lot of tenants prefer to be in one place for an extended period, minimising your vacancy and making life easier with a good tenant.

Property management is better

Over the last few years the property management industry has recognised their need to improve. We have certainly been some of the front runners in the call for the industry to be regulated, but we are definitely not alone. Property management used to be an industry where the rules were unwritten and easily bent, often at the detriment of the client. This is the case no longer. The industry is vastly improved and standards have increased. As you grow your portfolio, you won’t have time to look after all of your properties, but at least now you can be confident in the knowledge that property managers are reliable and will do a proper job on managing them. In the case of Tommy’s, we established ourselves for exactly this reason and will act as portfolio consultants rather than just someone that collects the rent.

It is clear then that opportunity is fast approaching and property investment is just as exciting as ever to be involved with. Rally the troops, call your mortgage broker, accountant and property manager and find out more on how you can snatch the opportunity in front of you to improve your portfolio. Don’t have a property manager? Just need a second opinion?

Feel free to give us a call anytime on04 381 8604 . We would love to help!