The Real Estate Institute of New Zealand (REINZ) has released their latest figures today and, according to the new data, Tauranga house prices have jumped 4.5 per cent.
The latest data shows the median house price in Taurangas jumped to $635,000 in July 2018 from $607,500 in July 2017. Interestingly though, However, the median house price dropped 3.1 per cent from $655,000 in June 2018 to $635,000 in July 2018.
According to the REINZ regional director Philip Searle, as quoted in the Bay of Plenty Times, the Bay of Plenty market was still seeing low stock levels with a number of new listings attracting multi-offers.
“Investor numbers are jumping and are up to 60 per cent of the total buyer interest, and most of the investors are locals who know the area well.”
Searle said the low listing numbers were keeping the prices strong with vendors’ expectations remaining at the same levels.
You can read the full Bay of Plenty Times article Here.
If you are thinking of buying an investment property in Tauranga, Connect Realty Ltd can provide local expertise and advice about the current housing market. We also have in place highly effective systems that set us apart from traditional real estate agencies. We offer a results driven solution for the management of your property investment. When we speak with you about your portfolio, we will discuss the now, the near future and the long term picture. As part of this we are able to discuss development plans to ensure you maximise the potential value of your investment portfolio.
Property is often the largest investment many of us will make, so it is worth the time to ensure you have the right team of industry professionals supporting you in reaching your goal, giving independent advise on where best to invest your money.
With the Tauranga property market doing so well over the last few years, more people are interested in getting into property investment. Of course, property investment is not something to consider lightly and is not always smooth sailing for Landlords. There are some key things you should consider when buying an investment property and to help you on your journey here are four questions you should think about:
1. What are you trying to achieve?
Is it money? Is it wealth? For most people, the answer is financial freedom. The actual bricks and mortar of your property probably isn’t your end goal. Rather, it’s the vehicle to get you to where you want to be. Therefore, treat property investment as a journey, and don’t get lost along the way.
2. What strategy are you going to use to get you there?
For some investors, their preferred strategy is high growth properties. For others, it is a consistent cash flow. If you are in the first camp, you need to look for properties priced below their intrinsic values in areas that are going to perform well in the long term. Look for something that is a bit unique, a bit different or special, and add value. Look for a property that’s going to be in strong demand by owner-occupiers rather than just tenants.
If cash flow is your main driver then consider investing in either established or growth suburbs. Buy property that is near schools and shops, is easy to maintain and will be easy to rent out.
3. What can you afford?
We recommend visiting a proficient finance strategist, either your bank or a professional financial advisor or accountant who understands how to set your finances correctly. Also, always get your loan pre-approved, because that is going to be one of the factors that affect where you buy and the sort of property you can buy.
Before you purchase your property, talk to our team for a free market appraisal of the property to make sure you are realistic about what you will achieve.
4. Who do you ask for advice?
As stated above, you should always talk to your bank and accountant for professional advice about your finances/costs. We also recommend using a good lawyer to get the right ownership structures, the right entities etc.
Next, you should speak to a certified Property Manager for independent property advice. This can help protect you from investing in the wrong type of property or paying too much for an investment property.
If you are thinking of purchasing an investment property in Tauranga, give Chris a call. Chris has many years of real estate and property management experience and will give you the best advice for your property investing goals.
Finding the next property hotspot is important for many property investors and especially for those entering the investment market for the first time and/or hoping to get a capital gain on their investment. Of course, finding that hotspot is like finding the golden egg, it requires a keen eye and an expert team on your side. Besides finding the right neighbourhood, you also need to find the right street and the right house. Read some tips below on what to look for when searching for a new property investment in Tauranga and then give Chris a call to get things started.
Tauranga Real Estate Trends & The ‘Ripple Effect’
While it is not always easy to predict the next property hotspot, often the latest high growth area creates what is called the ‘ripple effect’, where buyer demand and capital growth ‘ripples’ outwards from one suburb to the next. Simply, as prices increase in the ‘hot’ suburb buyers tend to look for ‘the next best thing’ that falls within their budget; in adjoining, lower-priced suburbs. This ‘ripple effect’ in capital growth most commonly moves from the inner suburbs outwards, and along or away from the coastline.
For example, Papamoa has seen a huge increase in new housing stock and house prices over the last few years, as well as new roads, new schools and new shops. Due to this growth, there has been a huge increase in demand for housing and rentals in Papamoa which has resulted in many families having to look further afield for a home to surrounding suburbs. As a result, areas such as Welcome Bay and Te Puke have also started to see signs of growth in both population, house prices and rental prices.
So take a look at websites such as interest.co.nz and see what trends are taking place in Tauranga this year. Take note of how the surrounding areas of these growth suburbs are performing, is there infrastructure spend happening, new roads, proposed new schools, etc?
In general, New Zealand town planning has a sprawl mentality rather than a build-up focus, so look at fringe areas that have good access to key roading routes and land where possible new subdivisions could happen. Also, take a look at Council long-term plans. These documents outline future growth areas and where new development will take place. You may find that an existing neighbourhood borders on a new subdivision, which will then benefit from new infrastructure.
Go To The Streets
It may sound fairly obvious but it really is important that you get a feel for the streets within a suburb. By walking/driving around the neighbourhood, you can rule out those streets that are just too run-down or too far away from schools, bus routes etc. Also, there can be sunny sides of the street or reserves and walkways that could add or detract from properties. Don’t rely on Google Maps to do the walking, get out there and get a feel for the place.
Our team at Connect can also provide you with a market analysis of the area and give you some feedback from our real estate knowledge of different Tauranga neighbourhoods.
What Type Of House
For some areas in the Bay, building a new home may have better returns and long-term capital gain than older housing stock. Look at house and land packages in new subdivisions and consider solidly built insulated homes that are close to schools, have a garage, are fenced etc. These homes are generally easier to maintain, attract quality tenants and have good capital gains.
If you are buying an older home, look for one that you can easily add value to. Changes we recommend are insulating, updating bathrooms and kitchen, new carpet and curtains, and a fresh paint job. Tenants also prefer a garage or off-street parking, fenced properties and warm, dry homes.
We are happy to provide a free rental appraisal for any home you purchase or are considering purchasing.
Good luck with your hunt and when you are ready, call Chris and the Connect Realty team for some professional, experienced property investment advice.
When it comes to small businesses, the success of the business depends heavily on word of mouth. With Connect Realty Ltd being a local privately owned company we understand that positive reviews & testimonials from our clients help you make a decision about whether to use our services.
Here are some of the more recent reviews we have received On Google:
Connect Realty Ltd team have managed my property in Greerton for 4 years now and I have found their service to be reliable and timely. They accommodate my out of town visits and requests for assistance without skipping a beat. Thank you Team Connect for making rental property ownership possible. Judith Hunter
Chris and her team have been a pleasure to work with, quality service and competitively priced. Thanks. Heath Coleman
We have thoroughly enjoyed working with Chris and her team and are very happy with the tenants that Connect Realty recommended for our property. They are very efficient and quick to respond on any of our queries and nothing is too much trouble. It has definitely taken the stress out of being a landlord . Diane Coates
Chris and her team have always provided great service for my rental property in Tauranga. Highly recommended! Sydney Crocker
Have had Connect managing my property for almost 3 years. Very efficient, regular updates, sourced good tenants and unlike other agencies do not try and make additional money from constant repairs, instead arranging quality maintenance as and when needed. I wish they had an operation in Wellington so I could move my business to them there. Stephen Davies
Connect Reality have managed a number of rental properties for us over the years and we could not be happier with the service provided. Chris and her team have years of experience and in depth industry knowledge. Exceptional high standards are maintained through clear and concise policy and practises. From vetting tenants, property inspections, maintenance, rent collection and insurance through to compliance issues. Highly recommended. R. Bawden
I would highly recommend Chris and her business. Very professional and experienced staff and anyone I have mentioned it to has only got great things to say. They have an amazing commitment to property management and have high standards and attention to detail! Again would highly recommend:) Sarah Pearson
Chris is lovely! I’ve had the opportunity to speak with her a few times and would recommend her without hesitation to anyone who needs property management services in her area! Todd Breen
Chris and her team have managed my rental property in Tauranga for five years. During that period the house was never empty, there were four changes of tenancy over the period and every time the new tenants moved in a day or two after the incumbents departed. I am in the military and am often overseas and un-contactable, Chris dealt with all tenant issues and arranged maintenance, and contractor access with minimal input from me, which was excellent. Chris managed steady rent increases and tenants were always vetted so no issues with missed rent or damage. Chris was also very helpful when it came time for me to sell the property, allowing access for estate agents and helping to smooth things over with the tenants during the sale process. I would highly recommend Chris and her team to any investors who need reliable management of their property with minimal input. Nick Foster
Positive testimonials and reviews strengthen our credibility and our business and I am grateful to all the clients that have taken the time to write kind words on our website, Google and Facebook.
If you have any queries about our services please do not hesitate to call.
According to figures out from Australia this week, in 2017 over 55 percent of first home buyers sought help from their parents to fund their mortgage. This is a huge leap from 3.3. percent in 2010, and experts say that New Zealand is likely to be the same or even higher. One mortgage lender even suggests that 60-70 percent of New Zealand first home buyers had parental help, and for those under 30 years of age this figure jumped to 80-90 percent because of small KiwiSaver investments.
These statistics really highlights the difficulty for young people to get on the property ladder. When taking out a home loan to buy a house, it’s typically recommended that you borrow no more than 80% of the property’s value, which means having a 20% deposit. With average house values in Tauranga sitting at $700,000 a first home buyer would need $140,000 for a deposit. A cheaper home, for example $500,000, will still need a deposit of $100,000. Given these figures it is easy to understand why first home borrowers need to look to family to borrow their deposit.
The negative side to the story is that most of these loans are on a “pay it back when you can basis” and interest free, which can make it difficult for parents that are also moving onto the next stage of home ownership. It is also highlighting the gap between the haves and the have-not. Given home ownership is falling in main centres, and many more adults are renting, there is going to be an even wider gap between those who can afford to own property in New Zealand and those who will have to remain renting through their life.
For the full article see the NZ Herald –
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