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What investors can expect from Northland’s property market in the second half of 2019

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What investors can expect from Northland’s property market in the second half of 2019 – your questions answered

As leaders in rental property management in Northland, Rental Experts has a mission to let property investors know what’s coming, when is a great time to buy, and whether rental yield is likely to give a reliable return on the money you hand over to make your brick and mortar property investment.

Remember, we’re available at 09 459 7139 / info@rentalexperts.co.nz when you want rental property management advice.

We’d like to thank CoreLogic for their observations and predictions which helped inform the following…


In the second half of 2019, can property investors expect sales to surge, slump or something in-between?


Average values are growing in a restrained fashion and residential property sales activity looks set to tick along at the same controlled pace in the second half of the year as it has in the first.


Is any part of property investment getting more expensive?


Two key factors to watch are policy decisions from the Reserve Bank (rules around loan to value ratio) and any buildings insurance premiums changing (there was a major shift in buildings insurance premiums mid-year)

Graph – credit CoreLogic

Good news on property investment in Northland:

  • Rental yields to continue to rise (albeit from a low base), as rental growth continues at a steady pace of about 5% annually, and above the growth in average property values. This will be welcome news for investors, who are facing tax ring-fence for losses) – and investors don’t have to worry about capital gains tax anymore.
  • Average property values still rising but in a restrained fashion, with the more affordable towns and cities in ‘regional NZ’ likely to record the largest increases in value
  • We can expect loosening of the LVR rules in November, reflecting our expectation of steady market conditions. Possible options include lowering the owner-occupier deposit requirement from 20% to 15% and/or raising the investor speed limit for high LVR lending from 5% to 10%.
  • We can expect banking sector competition to remain intense and ‘rate wars’ to be a recurring theme. This will be the case regardless of whether or not the Reserve Bank cuts the official cash rate again.