This is an exciting year to be parting of New Zealand’s rental housing industry. While there are constant challenges investing in ‘bricks and mortar’ rental homes, the importance of our place in the system is crucial. The demand on housing is ever increasing post Covid, with high levels of immigration and record interest in moving to New Zealand. We know that climate change is going to increase people shifting to cooler climates, and it will be hard to keep the borders closed on refugees.
Before Christmas, Housing First, a social housing provider in Christchurch invited me to a breakfast with other owners. It was a pleasure to see several Canterbury Property Investor Association members also there, as we heard about the great work these agencies do. And this is repeated around the country.
Many owners find there is the satisfaction of meeting housing needs, alongside the convenience of having competent managers take care of their rental is a good solution for their investing. The added incentive in recent times is having tax deductibility allowed on the rental providing this type of housing. One of the barriers has been insurance as not all companies will cover social housing as tenants. Sometimes education is needed of the care the managers take to cover the risk of damage. It is only really an issue if the property has to change providers as this is more difficult than ever.
The public private partnership and spirit of collaboration are visible in a very positive way through the connections. The removal of tax deductibility, rising expenses and other risks associated with owning rental housing has changed many owners future plans. It’s a good time to review your investing, and considering social housing is a viable option for some rental investments.
We plan to run a national webinar on this topic, and other topics of wide interest next year. Be sure to stay connected to your local Property Investor Association to find out more. www.nzpif.org.nz