Investor Survey 2016: Your Next Bold Move

NZ Property Investors’ annual survey of landlord activity reveals an optimistic outlook for 2016.

The stratospheric rise in Auckland property prices in 2015 created options for those prepared to use equity in order to re-invest. Yet difficulty securing investment properties in an over-priced market is keeping investor behaviour relatively conservative - despite historically low interest rates.

Joanna Jefferies consults with the experts on investor activity and examines your next move.

It is no surprise the biggest issue property investors face in 2016 is property unaffordability – high property prices have resulted in a lack of viable investment properties on the market.

Astronomical residential property value increases seen in Auckland in 2015, and ongoing high net migration, continued pressure on Auckland housing supply is likely to persist this year.

But although NZ Property Investor’s Investor Survey 2016 respondents say high house prices are the number one issue this year, surprisingly almost 54.63% of investors surveyed are planning on buying an investment property within the year and 42.02% purchased a property in the past year.

This suggests investors, while concerned with prices, still have a high level of optimism.

Fuzo general manager Troy Patchett confirms great deals are still out there -even in the SuperCity - for investors willing to think outside the box.

He says his clients are buying average properties in Auckland with the potential to be developed, either by adding a granny flat or minor dwelling or by subdividing.

“People are having to create the deal themselves as opposed to buying it packaged up,” he says.

Of the investors surveyed, 74% own less than seven properties and of those 52.75% own between one and three.

Patchett says it is these novice and new investors who are struggling to grow their portfolio in a time of elevated house prices. He says those who have a borrowing capacity of between $400,000-450,000 may feel they have limited ability to purchase in Auckland, but a shift in peoples’ expectations is all that is needed.

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