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Author John Kenel30 April 201904 Apr 2019

Expert Opinion

Rents Keep Rising – High Demand for Rental Property

The demand for rentals is very high tight across the country and in most places supply is not keeping up with demand, says Trademe’s head of Property in an article by The Landlord.

“From what we’re seeing renters are staying in their rentals longer while they get deposits together and in certain parts of the country home-ownership is moving beyond the means of many Kiwis. Unless the supply of rental properties can be increased, we’re only going to see rent prices climb in the future” Aaron Clancy says.

The nation’s median rent is now $495 per week, up 5.3% on last year.

As long as the government keeps trying to make rental property unattractive to investors, rents will continue to rise. It’s increased rental property supply that’s needed to slow rent rises and the best way to do that is to incentivise property investors to buy new rental property off-the-plans. It’s off-the-plans purchases that allow builders and developers to get the construction funding they need to build more housing.

Private builder’s and developers are the ones who are going to add to housing supply, the government has shown beyond a doubt with the failure of Kiwibuild that they haven’t a clue to how develop new housing.

It’s time the government stopped punishing property investors and instead welcomed their investment and their desire to buy and rent out new homes. Property investors provide an extremely value service, stop being jealous of the fact that they make a profit from renting out their houses and appreciate the service they provide.

John Kenel
Assured Property

Click on this link to read more:

goodreturns.co.nz

Author John Kenel30 April 201904 Apr 2019
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