It was not so long ago that I frequently heard people saying “we are in new era where interest rates will never return to pre-GFC levels”. I listened to a bank economist link interest rate spikes to population explosions, like the post World War 2 baby-boom phenomenon. The argument was that if you went back…
1. How will a rise in interest rates impact the syndicate? Banks predict that interest rates may peak towards the end of next year (2023). We don’t have certainty on that, but we actively manage the risks. We believe that the rent inflation will provide a natural hedge against the rise in interest rates because…
Our industrial investment strategy for Westland Property Syndicate is yielding good results. In November 2021, the Westland Property Syndicate LP purchased a prime industrial building in Rolleston – 20km from the Christchurch CBD. We liked the Rolleston location because it is one of the…
Government funding support for early childhood sector attracting wholesale investors to Erskine Owen’s NZ Daycare Properties Fund LP. Daycare Properties Fund is enticing property investors Long-term leases and significant government support are enticing property investors to invest in daycare centres. Alan Henderson, Director at property investment company Erskine Owen, said the specialist investment sector is…
Erskine Owen director Alan Henderson sat down with economist Dr David Skilling to discuss how changes in the global economy might affect New Zealand. David advises governments, companies, and financial institutions in the Asia Pacific, the Middle East and Europe on dynamics in global macro, economic policy, globalisation, and geopolitics. A global decoupling…
Distribution centre syndication delivers strong returns to investors In late 2019, we launched a property syndication to purchase a Heinz Wattie’s distribution centre in Hastings for $29.1m. Two years later, the syndication has consistently delivered strong cash returns and capital growth. First, the syndicate has achieved an 8% return (paid monthly) – in line with…
In 2009, Mr and Mrs Brown approached Erskine Owen with a clear goal: retire in 2029, with $135,000 per year income after tax. Erskine Owen directors Alan Henderson and Lisa Phillips got to work. Working backwards from their 2029 financial goal, they put together a 20-year plan to achieve it through intelligent property investment. The…
Sky-high house prices make it hard to buy a first home, let alone a rental property, but experts say there are ways to invest in property without buying a house. Investing in residential rental property has long been New Zealanders’ favoured means of building wealth, or saving for retirement. But a host of Government and…
More investors are cashing out of residential properties – and some intend to put their money into commercial buildings, recent data and commentary suggests. An October Tony Alexander Portfolio Investment Survey shows of 1753 respondents, a net 19 percent intend to reduce their residential property investments over the next year. A net 2 percent intend to buy commercial property,…
Is the NZ Property Party Over?
In the year to September inflation hit 4.9%, the highest in a decade, and mortgage rates have risen rapidly. As a property investor it is natural to be concerned about the impact on property prices and yields…and ask is the property party over? Inflation While the inflation rate has startled some investors, the real question…
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