A recent article in the Bay of Plenty Times outlined why now is the perfect time to invest in property in Tauranga and surrounding areas such as Mount Maunganui and Papamoa.
The article stated that there is a deepening rental shortage, following on from the release of Trade Me figures showing demand for accommodation in these areas continues to outstrip supply. The figures show the supply of available rental properties dropped by 18 per cent in the October-December quarter while demand ballooned by 17 per cent for the same period, and the average weekly rent also jumped by 18 per cent.
The shortage can be attributed to two factors, firstly the city’s rapid growth, and secondly the Reserve Bank’s restriction on loan-to-value ratio (LVR) lending. Nationwide the LVR restriction has prevented many first-home buyers from entering the real estate market and has forced them to continue renting. This has resulted in renters that are desperate for decent accommodation.
We find that renters come from all over, including Auckland, Hamilton and Australia. Mount Maunganui and Papamoa rentals are especially popular for these new residents, and the Pyes Pa area has also seen a huge growth in terms of demand this year. Summer is usually the most popular time, with families wanting to find a home before the school year begins.
If you are considering purchasing investment property in Tauranga, Papamoa and the Mount Maunganui areas, call Chris or Nicky for more information about the best places to buy, rental returns for the area and more.
Given the rental situation is nearly at crisis level, now is the perfect time to buy!