After the pandemic, New Zealand experienced a post-COVID boom where affordability had risen quite significantly. Property values dropped across all of New Zealand but Christchurch. Meaning good news for those who were seeking to acquire their first, or another, rental property.
What does this mean for Rental Property Owners?
It’s certainly not the time to sell as the value of your property has declined, but that doesn’t mean it’s all doom and gloom for property owners. You can still have a rental property instead. A rise in rent is also on the cards for 2023 due to a hike in interest rates. Landlords will be forced to increase rental rates to compensate for the increase in their mortgages. This is good news for landlords as your properties will be earning more.
Hold on to your property
If you try to sell now there is a big chance that you will need to come down with your price by a substantial margin. Buyers will most certainly exploit this effect en come in with low offers as buyers will be far and few for months to come. Hold on to your rental property, ride out this wave and come out the other end with a successful property.
Be a good landlord
Having rules and regulations in place is just as good as to maintain a good relationship with your tenants. Know that they too are feeling the effects as the economy changes. Rather keep your tenants long term, respect the rights that they have and keep an open conversation when it comes to rental price hikes, agreement changes etc.
This can be a challenging balancing act to maintain over a long period. But, with the help of amazing and experienced property managers, it’s as doable as gets! Read our article “10 Reasons why Property Management is very important” (link) to learn more about the benefits of using a property manager.
A Property manager makes a huge difference and because of their experience they can navigate these property economy shifts with optimal results.
Don’t risk your property investment
Shifts in the housing market happens in every country around the world, it’s not exclusively one country’s challenge and they will keep on happening throughout your property ownership. It’s highly recommended you get the best advice from experience property managers like The Rent Shop. Property Managers do make a huge difference, get in touch and start an impactful journey to rental property success.
