Eagle Eye Property Insights – Issue 19
Here’s your latest issue of the Eagle Eye Property Insights by our senior accountant Graeme Eagle.
1. It is like a light switch has been turned on and there is an air of confidence back in the property market. Adrian Orr from the Reserve Bank has cut the official cash rate. It seems like that was what the market was waiting for. I am told locally that numbers attending auctions and open homes are up. I hear a lot of people saying reduced interest rates will mean prices will start going up. I will be watching closely to see what happens. One thing to remember though is that every property cycle is different from the last!
2. I recently read of the Napier City Council’s decision to sell 72 of its 377 properties it rents out to elderly and low-income tenants. A council spokesperson has said that they would ensure those impacted would have a future home. Where are these tenants going to go? I know several people renting similar properties in Hastings and most of them can’t afford to rent from private landlords. I can see that many tenants will be forced to live with their families but that won’t be an option for some of them. What it also does is put other tenants living in similar council owned property on notice that this may happen to them in the near future.
3. Have you had to find a tenant recently like I have? From people I talk to finding the “right” tenant has been harder in recent times. I put it down to the high cost of living with rents forming a big part of that. So, what can you do as a landlord to find the “right” tenant? My advice is to use a property manager to leverage their time and expertise. Price the rent correctly in the beginning and be prepared to drop the rent if the property is still vacant after 2-3 weeks. Present the property in the best light attending to any maintenance that needs to be done. I am always surprised a lot of self-managing landlords do not want to use a property manager because of their cost. In my view, if you cannot afford one you probably shouldn’t be investing in property.