The real estate market is settling down and we have seen good gains in provincial New Zealand during 2017. Investors have more equity in their properties, a softening of the loan-to-value ratio (LVR) will make borrowing easier in the coming months. The healthy homes bill has been passed, and we know the government are keen to review to rental sector. We do not anticipate the outcomes to be game changers but they will inevitably mean changes. In provincial New Zealand rents will rise moderately as they play catch up, and property values will also continue to make modest gains. So overall, with a good property manager, rental properties in the regions are still set to offer better yields than the cities, steady equity gain and are a good investment.
The Ministry of Business, Innovation & Employment report next to no change in average rents between October 2016 and October 2017 however at Property Brokers, we have recorded modest increases:
Manawatu 4%
Horowhenua/Whanganui 3%
Wairarapa 8%
Waikato 7.5%
Hawke's Bay 4%
Despite a significant up-lift in house prices, good yield can be achieved as it's still possible to buy rentals in Whanagnui, Marton and Levin and achieve yields of 10% or more in some cases.
Property Brokers has expanded its presence in Waikato and we now have branches offering property management services in Tokoroa, Te Kuiti, Morrinsville, Taupo, Matamata and Te Aroha.
We would like to take this opportunity to welcome Marty Maarhuis to the property management team. Marty has been building a portfolio in Te Kuiti for a number of years and we know that together we will be able to provide an excellent service for the Te Kuiti community.
In the Hawke's Bay region we added a new rent roll to our Wairoa office at the beginning of November. We now have two Property Managers looking after our clients investments, Eva Jones and Pauline Ormond.