Demand for rental properties is soaring in Whangarei. Why not please everybody and rent out yours?
The Hundertwasser Arts Centre and Wairau Māori Art Gallery is well under way and it’s a thrill to see local firm Trigg Construction winning the contract to deliver an excellent build.
The tourist numbers will add to an existing flow of families moving mainly up from Auckland settling here.
What those people need is rental property.
Becoming a property manager can be a win-win. You want some rental yield; tenants want more properties available; and those selling their house will surely appreciate your interest!
To be fair, things are tough on first home buyers, though a good chunk of the population can’t even look at owning a home. They’ll be renting for a while as they figure things out. And that’s where you might come in.
Here’s what we know about Northland opportunities as the region enters winter (thanks to REINZ for the following data)
- In April, the Northland market saw a record high median of $507,000, up 12.7% compared to the same date last year. The total number of dwellings available for sale increased 15.6%. There was a 4% increase in new listings for the month.
- Banks are competing on interest rates, but remain tough on lending, so if you can demonstrate you already have property as collateral, then you might get a loan for a property investment without too much hassle
- REINZ says it has heard anecdotally that some vendors are reluctant to lower their price expectations to meet the changing market and buyers are in less of a rush to purchase. There has been an 11% decrease in number of properties sold year-on-year. One way to interpret this is you should get in quick and snap up a property to rent out before prices peak in a few years.
Recent regional median prices in Northland for April are:
- Far North District – $480,000 median
- Kaipara – $527,000
- Whangarei – $515,000.
The median for the whole region is $507,000. Interestingly, this is higher than March, so despite the cold, we’re seeing price rises.
Now, the big question: where to buy?
If you’d like your tenants to be, say, a Whangarei born and bred family just moving within the city, then the up and coming suburbs such as Raumanga are good places to invest.
What’s trending, though, is the following:
- Most migrants to Northland have been settling in Whangarei, followed by the Far North. So Kaipara is not the number one ideal place to invest in a rental property.
- Northland District Health Board remains the region’s largest employer, so that’s always a great place to find tenants
- Demand for rentals is trickling into even the smallest regions, with Marlborough, Manawatu and Whanganui showing the fastest growing rent levels in new stats. Being just a drive away from Auckland, Northland is of course not immune to these trends. The upshot of it all? Rentals.co would be delighted to take care of managing your property and its tenants for you.
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