by
March 24, 2021
Wow, what has the Govt done now? Well that is a subject of a later update when it has been digested. So the wild ride continues. In and out of lock-downs, new legislation, a real estate boom... and soon bust? But what is really going on right now? First of all we are seeing experienced and/or tired investors selling their expensive to Healthy Home upgrade properties. We are also seeing a huge amount of new investors who have little property experience (often buying properties with problems we have to fix). So we are busy!
In Auckland now there are more properties available for rent than any time in the last 7 years we keep records on: perhaps ever! The number of extra 1 & 2 bd properties (many ex AirBnB)have remained very high, now around 50-60% more than last year. But the new phenomena is the fast rise of 3 bds for rent. For most of last year until about 3 months ago there were 10% less available, but over Feb/March the numbers went quickly from low to high. Now there are 25-30% more 3 bd properties available than the same time last year.Our best guess is that this is due to two reasons. Landlords clearing out problematic tenants prior to the law change removing the 90 day ‘no stated reason’ notice. Perhaps also contributing are the many new rentals purchased quickly before the 40% LVRs came in, with purchasers having to use their pre-approvals or lose them. In either case the situation should correct but... Winter is coming!
