Exciting Year For Rental Industry
It’s a good time to review investing, and social housing could be a viable option for some owners, writes Sue Harrison.
30 December 2023
This is an exciting year to be part of New Zealand’s rental housing industry. While there are constant challenges investing in “bricks and mortar” rental homes, the importance of our place in the system is crucial. The demand on housing is ever increasing post-Covid, with high levels of immigration and record interest in moving to New Zealand. We know that climate change is going to increase people shifting to cooler climates, and it will be hard to keep the borders closed on refugees.
Housing First, a social housing provider in Christchurch, invited me to a breakfast before Christmas with other owners. It was a pleasure to see several Canterbury Property Investors’ Association members also there as we heard about the great work these agencies do; work that’s repeated around the country.
Many owners find there is the satisfaction in meeting housing needs and the convenience of having competent managers take care of their rental.
Recently, an added incentive is having tax deductibility allowed on rentals providing this type of housing. One of the barriers has been insurance as not all companies will cover social housing. Sometimes, education is needed around the care managers take to cover the risk of damage. It’s only really an issue if the property has to change providers.
The public/private partnership and spirit of collaboration is visible in a very positive way through the connections. The removal of tax deductibility, rising expenses and other risks associated with owning rental housing has changed many owners’ future plans. It’s a good time to review your investing; considering social housing is a viable option for some rental investments.
We plan to run a national webinar on this topic, and other topics of wide interest next year. Be sure to stay connected to your local Property Investors’ Association to find out more. www.nzpif.org.nz