With the Reserve Bank removing the 20% deposit loan-to-value ratio requirement, property purchases are now within closer reach for many first home buyers. Early reports show a huge spike in interest by 18-29 year-olds browsing TradeMe for properties, with no other groups showing a marked change in browsing habits. Provided this increase in buyer interest converts to ownership, we’d expect a portion to become future first-time property investors. Some may even be considering moving into purchased properties. These are likely to be in cases where KiwiSaver has not been withdrawn to buy, or when buyers are entering the investor market once their KiwiSaver owner-occupation obligation has lapsed.
New property owners are the most at risk of encountering issues with tenancies and compliance. Our franchisees are experts in not only hands-on property management but also onboarding first time property investors.
The current market also provides ample opportunity for existing property investors looking to expand their portfolios. With recent loan-to-value ratio changes, seasoned property investors have increased access to funds and an opening to use equity gains from the past few years.
