1. Confidence appears to be returning to both the local and national property market. I find this interesting given some of the headwinds, such as the current labour market and the trade wars going on overseas, to name a couple. The one silver lining for property investors in all this uncertainty is the drop in interest rates, with sub-5% rates now the norm. Couple this with the fact that from 1st April 2025, property investors are allowed to claim 100% of their mortgage interest, and you can begin to see why Kiwis have a love affair with property.

2. Did you know, as part of their debt-collecting activities, the IRD is targeting taxpayers in business who own property and encouraging them to refinance to pay their debt? I think this is quite smart, but it won’t suit all taxpayers. Lower interest rates increase the chances of making this work, and it can save taxpayers money in real estate fees when it may not be the best time to sell.

3. The available rental property stock is apparently at a ten-year high, with some landlords even throwing in a new TV as an incentive when tenanting a property. What caused this turnaround from a shortage? Large numbers of townhouses have been built, especially in the main centres. People have been moving overseas for jobs or better-paying jobs, with fewer people migrating to New Zealand. Then there’s the changes to the Brightline Test, which may have encouraged some investors to sell up. Some vacancies can’t be avoided, but property investors should firstly consider looking after their current tenants. Keeping rents fair, keeping on top of maintenance, and ensuring there is open and regular communication with the tenant go a long way.

Please note this content is for informational purposes only and does not constitute financial advice.