Grab a warm cup of hot chocolate – sit by the fire and read away.
There is much to talk about now with the housing market – so many varied opinions and pieces of information distracting us and offering advice.
What is happening in our field of Property Management and what am I seeing:
1. It’s another cycle – and nothing to be afraid of. The most wealthy people know to buy property and hold through these cycles. Buy when no one else is buying (which is now!) and just hold. Make sure the properties are positively geared and maintain the home well for the tenants.
2. The current government is trying to persuade people away from property investment – but if you have funds – where do you invest for financial freedom and your family’s future that is as safe as houses – you invest in houses. There is no other viable/safe alternative. In my humble opinion.
3. Immigration and people drive demand up – and due to lack of supply, rents will continue to rise, hence returns on investments will rise also.
In the past we have asked our landlord clients who would be interested in buying another property to hold long term as an investment home – 38% came back saying yes – they would love another investment. So, the demand is there, it’s just that people are time poor to organise and a little gun shy given the media and a few legislation changes.
Fixed interest rates are coming down and its looking like the Reserve Bank may reduce the OCR to 1% - just like they have done in Australia. This means rates of around 3.8% for 12 to 24 months are available and then you can buy property returning you rates of 6.5% - the strongest returns we have seen for a while. Take hold of this opportunity.
Winter is a good time to check your insurance policies and review your plan. Make sure your investment policy covers you for rent losses and tenant damage – if not, speak to one of our team about policies we can suggest to make sure you have a safer investment option and cover.
Stay warm – take care – and if you need anything – please just ask.