Recent articles on the property market have begun to turn their attention to Hawke’s Bay as a region of growing potential – and has even referred to it as ‘the new Tauranga’. It’s backed up by the stats: Hawke’s Bay is experiencing higher-than-anticipated population growth. “The region is experiencing some of the strongest house…
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Three weeks ago, people were hesitating to make property investment decisions pending the government’s announcement on a Capital Gains Tax. I think most of us were expecting a CGT, at least on residential property – but there was nothing. Political genius, opportunism, planned? Call it what you want – Capital Gains Tax is essentially off…
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One of the most common property portfolio flaws we see is chasing yield at the cost of capital growth. As long term investors we believe the goal should be to maximize capital growth, because capital growth is what carries us to our wealth goals. Yield is absolutely critical to the survival of the portfolio, but…
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Apparently, the average interest rate, going back to Egyptian days, is below 5%, and that all the massive spikes in interest rates since 1900 have been due to massive population growth spikes. World population growth rates are slowing and are not expected to spike again, so if you believe that, you can safely forecast interest…
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The Residential Tenancies (Prohibiting Letting Fees) Amendment Act has now been passed, As of 12 December 2018, tenants cannot be charged letting fees. Letting fees are normally the equivalent of one week’s rent (excl. GST) and paid at the beginning of a tenancy as an upfront cost to the property manager. As you can imagine,…
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Looking to the future we all know we need to build equity to generate income without us having to work, so why is it that it gets so little attention? Last month a good friend finally bought an investment property. I’d been at him for years and he is now finally on his way to building the equity he’ll need…
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There are now only a few shares left available in our Ladies Mile syndication opportunity. As a reminder, It’s a 5-bedroom boutique lodge with a 4 bedroom managers house on approximately 4.7 hectares of land. We are forecasting a pre-tax yield of 3% but the real opportunity here is the potential value uplift. 497 Frankton Ladies Mile…
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Have changes to property management rules got you thinking of selling? Perhaps before you make the decision to pull the plug it is worth talking to one our advisors at Erskine + Owen first. If after that you still want to sell, then we can help find you the right sales agent. Get in touch…
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Our latest syndication is a 5 unit workshop/storage complex in the rapidly growing area of Frankton in Hamilton. Why This Property There is a projected yield of 7.0% for investors. It is Currently leased to six separate tenants on mixed lease terms. The units provide for potential rental growth and are always in demand. It is a…
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OCR Rate Cut – What Does it Mean for the Housing Market and Interest Rates
Our last interest rate article discussed the long term historical average rate sitting below 5%. We now have an OCR rate cut of 25 basis points, providing more evidence that rates will not be rising beyond 5% for the foreseeable future. What is perhaps more interesting is there is a widely held view that we…
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