Year of the yield

With value increases tailing off, for investors it’s the year to focus on yield – and opportunities will be numerous despite the headwind of regulatory change.

House growth yields
  • 31 January, 2018
  • PROPERTY MANAGEMENT
  • Investors, Yields, Landlords

If 2018 had a theme for property investors, it might be “uncertainty”. This year landlords are likely to be in for more regulatory change and increased costs.

But the softening of the market means savvy investors are already looking for potential opportunities, maximising their current portfolio and expecting rents to rise.

Some of the issues are the economic climate, the likely direction of interest rates, looming legislative changes, value projections and the rental market.

While most believe that rents are only going one way – which is up, not down – investors are split into two camps on how to invest this year.

Some plan to buy as the flatter market has the potential to provide more opportunities and potential bargains, but others plan to spend money on their existing rentals to improve the yield.

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LJ Hooker NZ

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