On every front, the current market is the most investor-friendly in decades. The experts say this is the time to strike the deals that will secure your financial future.
A rare combination of factors is making the housing market more attractive to investors, says July NZ Property Investor, but it may not last, say the experts.
Despite tax changes frightening off some investors, property investing is a whole new ballgame, says accountant Mark Withers of Withers Tsang, which specialises in property accounting.
"I believe people will look back on this time and say fortunes were being won and lost right now."
There are several factors involved. One is the mortgage interest rates, which are at historic lows.
John Bolton of Squirrel Mortgage Brokers says: "Going forward I think that although rates will go up, average rates will be lower than previous cycles."
And after a hard period when investors found it hard to get finance, conditions have eased, says Kesh Maharaj, a property investment mentor and an investor with a 30-strong portfolio of rental properties.
Couple those financial factors with a housing market that is stagnant with low prices, and the market is offering smart investors the chance to snap up a bargain. Peter Thomson of Barfoot & Thompson says: "Housing values are not overheating [and] have not recovered all the lost ground caused by the double hit of the recession and global financial crisis."
Rents are creeping higher and vacancy rates are reducing, especially in Auckland, meaning that demand is increasing for rental accommodation.
All these factors have led to a situation where investors can buy cash-flow positive properties. Says Withers: "The bottom line now is that the average median-priced investment property in Auckland now delivers a gross yield of something equivalent to the cost of funds, 5% to 6 %, and it exceeds what you can get from the bank."
Also in this issue of NZ Property Investor, read about Nelson's Heather Jopson, who started landladies.co.nz and runs an investment business; plus the magazine investigates furnished flats, the pros and cons, and how to go about it.
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