Hard time for renters, Great time for Investors
No Vacancy
The Tauranga Property market hit the headlines last week again.
The belief is that there is a shortage of over 1,000 available rentals to meet current demand……and it’s not getting any easier on tenants as the economy continues to run hot.
Median Weekly Rent hit $525 per week (in April so is likely to be higher when we get May figures) which is around three-quarters of the median income.
This, and we haven’t even seen the impact of the University Campus Student demand yet - there are expected to be 600-800 students studying there.
15,000 people have moved to Tauranga over the past 5 years and a further 17,000 are expected over the next 4 years.
So, I have a few thoughts here:
Don’t abuse the privileged position you are in if you are a Landlord in Tauranga (or anywhere) - be respectful of your fellow humans whilst being rewarded for taking the risks you do by investing in property.
If you are a tenant looking for a place to rent, how you present yourself says a lot about how the landlord or property manager will judge how you will look after the property. Having self-respect suggests you will have respect for the property and the owners.
If you are an Investor, the yields may look better elsewhere but given the future growth, continuing demand outstripping supply, and the increased yields that are resulting, it would appear that Tauranga continues to be a solid, stable city and region for investment.
