Oct 09 Property Investors Positive About The Future

Oct 09

Residential property investors have changed their views on what house prices will do in the next six months, according to the latest property investor survey run by Mike Pero Mortgages and Landlords.co.nz.

A survey of more than 550 property investors found 44.6% of respondents expect house prices to increase over the next six months, which is a huge increase compared with the
previous survey.

“It appears property investors have changed their views from the last survey we conducted three months ago. There has been a substantial increase in the number of property
investors who now expect house prices to rise. Only 11.8% of respondents in the previous survey thought prices would rise, compared with 44.6% from the latest survey, ” says Mike
Pero Mortgages Chief Executive Shaun Riley.

Shaun Riley says the change in sentiment has been mainly a shift from those who thought prices would fall, as opposed to those expecting no change.
According to the latest survey results, property investors felt there were a couple of constraints in the market.

“Investors felt it was getting harder to find quality properties in the current market. This fits with reports coming out from the real estate industry, showing the volume of housing stock in
the market is down on recent years,” says Shaun Riley.

“But investors are certainly taking advantage of good buys. They have been very active in the market snapping up suitable properties to add to their portfolios, especially properties at
the cheaper end of the market.”

He says survey respondents also felt there was a major change in relation to rental properties.

“Here, the emerging view is that rents will start increasing. There was an increase in the number of investors who said they had increased their rents in the past six months and there
was a corresponding drop in the number who said they never increased their rents.”

Looking forward, 29.2% or respondents predicted rents would rise in the next six months, compared to 24.8% in the earlier survey.
About Landlords.co.nz:

Landlords.co.nz is s leading property investment website in New Zealand. It is run by Tarawera Publishing Ltd and the NZ Property Investor Magazine and includes information
designed specifically to assist investors.

For more information contact:
Shaun Riley
Chief Executive Officer
Mike Pero Mortgages
(09) 306 6698 or (021) 287 8727

Natalie Harding
Mike Pero Mortgages
Marketing Manager
(03) 365 4547 or (027) 498 4478