With interest rates still on the rise, and the cost-of-living squeeze felt by most kiwis, how viable is to be a landlord and all the work that entails?
Many of our investors come to us when they are looking for ways to supplement their retirement income and have decided to sell their property portfolio in favour of a more relaxed and stress-free lifestyle (read long holidays and cruises abroad).
Barfoot & Thompson Quarterly Rent update, found in their September 2023 report, found the average Auckland rent is $652.19 per week, up 4.44% on 2022 with the most noticeable moves in pricing for new tenancies rather than existing.
This is great news if you are starting out with property investments or adding to an existing portfolio but what about those of you with existing tenants that are feeling the pinch with the cost of living?
At the time of writing this Kiwibank is the latest to increase 6 month and 1-year rates making them the most expensive in the home loan market. If tenants’ incomes are not increasing at the same rate, and the cost of living is diminishing what’s left, we may see investors having to fork out considerable sums to top up the mortgage payments.
If tenants’ incomes are not increasing at the same rate, and the cost of living is diminishing what’s left, we may see investors having to fork out considerable sums to top up the mortgage payments.
However, property can still be a viable investment vehicle, if looked at it slightly differently. With a Southern Cross Partners Peer-to-Peer investment opportunity, our investors can invest using first mortgage secured loans, over a choice of NZ property and earn from 7.50%* p.a.
We have a track record of more than 27 years’ experience and credibility, our investments are backed by a tangible security – property. A flexible investment option that is transparent and steady, delivering enhanced financial returns monthly.
If you are a landlord that’s tired of tenants, maintenance and paying rental management fees but still looking for an investment vehicle, check out our website: www.southerncrosspartners.co.nz or call 0800 00 58 43.
Disclaimer: *All investment opportunities and rates are subject to change and subject to availability. Southern Cross Partners Ltd is licensed to provide Peer to Peer lending services under the Financial Markets Conduct Act 2013. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with a financial adviser before making any investment decisions.