For many Kiwis, investing in property is a major financial goal. While the coronavirus pandemic caused some initial concern around property sales, the New Zealand market has made an impressive rebound after lockdown.
Although we are not completely out of the woods, experts believe that the property market will continue to thrive – with strong signs of interest coming from mum and dad investors.
So, if you’ve been thinking about investing in property post-COVID, here’s what you need to know.
Increased rental demand
In recent years, New Zealand has maintained a high rate of immigration, and the pandemic has prompted many Kiwis living overseas to return home.
As a result, there is increased demand on the already short supply of housing – especially within more affordable suburbs where renters can get more bang for their buck.
With vacant properties filling fast, investors are unlikely to wait long before finding suitable tenants to help cover costs.
Competitive interest rates
Interest rates are currently at a record low, and there is a possibility that the Reserve Bank of New Zealand (RBNZ) may introduce negative cash rates, which will help to keep rates competitive.
A lower rate means you will pay less interest over the loan term. And, with lower repayments, you may be able to borrow a larger sum.
It’s worth keeping in mind that rates won’t stay this low forever – so be careful not to bite off more than you can chew.
Opportunity to get ahead
A Mike Pero Mortgage Adviser can help you navigate the lending process and support you to find the right loan for your circumstances.
Contact your local Mike Pero Mortgage Adviser to learn more.