Year of the yield

Monday 15 January 2018

With value increases tailing off, for investors it’s the year to focus on yield – and opportunities will be numerous despite the headwind of regulatory change.

By The Landlord

If 2018 had a theme for property investors, it might be “uncertainty”. This year landlords are likely to be in for more regulatory change and increased costs.

But the softening of the market means savvy investors are already looking for potential opportunities, maximising their current portfolio and expecting rents to rise.

In January’s issue of NZ Property Investor magazine, we speak to industry experts and experienced property investors about what they are expecting in 2018.

We get their insights into local markets, broader trends and what they’re planning to do with their portfolios in the year ahead.

Some of the issues covered are the economic climate, the likely direction of interest rates, looming legislative changes, value projections and the rental market.

While our commentators are unanimous in the belief that rents are only going one way – which is up, not down – they are split into two camps on how to invest this year.

Some plan to buy as the flatter market has the potential to provide more opportunities and potential bargains, but others plan to spend money on their existing rentals to improve the yield.

Marlborough investor Brian Kerr says he is getting his properties into tip-top condition this year.

“We’re getting them absolutely perfect and we’re going to get top-of-the-market rent. I think the number of rentals is going to reduce and the spotlight is going to be on the other rentals.

“Tenants are going to have a go at landlords – more than they’ve ever had a go – on properties not being up to scratch.”

He is going about things quietly with his eyes open, as no-one knows what’s going to happen with interest rates or on the international economic scene, he says.

“But I still think property investment is a great industry to be in and I’ll remain in it until the writing is clearly on the wall.”

To read the full details of the experts’ forecasts for 2018, click here to get the digital issue of NZ Property Investor magazine.

Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.

Comments from our readers

No comments yet

Sign In / Register to add your comment

House Prices

Pushing up the national average price

The main centres used to drive New Zealand’s market but it was strong provincial markets that contributed to the national average asking price’s rise in July.

Commercial

Join the office space revolution

Flexible working spaces are more than just a fleeting trend and the launch of a new co-working serviced office franchise programme will open up the market to investors.

Mortgages

OCR cut could prompt housing market upturn

The Reserve Bank’s decision to slash the Official Cash Rate (OCR) by 0.5% to a historic low of 1.0% has shocked the financial community, but what could it mean for the housing market?

Site by PHP Developer