Market Rocks On
New Zealand’s housing market seems impervious to the effects of lockdown. At the time of writing, Auckland has just moved down into level three, after a month in level four confinement. But house prices in the City of Sails continued to climb – up 2% since July, and a jaw-dropping 27% year-on-year.
1 October 2021
This is why we’ve chosen not to focus on “what will happen to the market” crystal ball gazing for this issue. Last year, it was the hot topic, but our market seems immune to lockdown price crashes … for now.
Instead, we are headlining with a success story. One that we hope will inspire you and help you think about your portfolio’s potential in a different way.
Born in New Plymouth and from humble beginnings, Ilse Wolfe didn’t have an affluent family to shepherd her into investment. She went to a “decile one equivalent school” (her words) and her success was forged from determination, intelligence, and the ability to see opportunity where others saw obstacles.
Her property journey has seen her develop a new way of pumping up the value of property – “cashflow hacking”. She aims for each property she buys to generate $20,000 profit each year, and achieves this by following a set formula that she developed after languishing in negative returns hell for a year.
With a portfolio now valued at $12 million, she has an audacious plan to reach $50 million net wealth, and you can read all about her on page 20. The “build to rent” sector is still in its infancy in New Zealand, but there are calls for it to be treated as a separate property class, which would offer investors an exciting new opportunity. Sally Lindsay investigates the possibilities of this new sector, which offers tenants security of tenure, and moves landlording into a more “professional” sphere.
Matthew Gilligan’s (somewhat tongue-in-cheek) open letter may raise a few eyebrows – or elicit a few laughs. He speaks on behalf of landlords who are feeling the sharp edge of seemingly endless policy and rule changes and argues that their contribution to society shouldn’t be understated.
And our renovation section explores an exciting new build in Mangawhai, a seaside paradise 90 minutes north of Auckland. What started as a family bach has ended up being a lucrative investment for an Auckland family who were concerned about how they would come out of the first lockdown … spoiler alert, they had a happy ending!
We hope that everyone has had a relatively smooth ride through 2021’s most significant lockdown, and that October sees Auckland able to open up again, Covid-19 once again banished from our midst. We’ve all done a great job keeping the country safe. All our best wishes and happy investing,
The team from NZ Property investor.