Winter is Coming

Autumn Update

It has been a wild ride recently. In and out of lock-downs, new legislation, a real estate boom... So what is really going on? First of all we are seeing experienced and/or tired investors selling their expensive to Healthy Home upgrade properties. We are also seeing a huge amount of new investors who have little property experience (often buying properties with problems we have to fix).
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Record Properties for Rent

In Auckland now there are more properties available for rent than anytime in the last 7 years: perhaps ever. The number of extra 1 & 2 bedroom properties (many ex AirBnB) have remained very high, now around 50-60% more than last year. But the new phenomena is the fast rise of 3 bedroom properties for rent. For most of last year until about 3 months ago there were 10% less available, but over Feb/March the numbers went up quickly. Now there are 25-30% more 3 bedroom properties available than at the same time last year.

Our best guess is that this is due to two reasons. Landlords clearing out problematic tenants prior to the law change removing the 90 day ‘no stated reason’ notice. Also contributing are the many new rentals purchased quickly before the 40% LVRs came in, with purchasers having to use their pre-approvals (or lose them). In either case the situation should correct over the next little while, but... Winter is coming, and it is getting harder to rent out some properties.

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