Why invest in property in 2022

During the Covid period Aotearoa New Zealand (and much of the world) saw a boom in property and other asset classes. A high influx of people returning to Aotearoa and zero departures coupled with record low interest rates and cash subsidies resulted in double digit growth in property values and rental prices. At the end of 2021 / start of 2022 this all came to an abrupt halt. Changes in legislation impacting property investors and interest rate increases from the reserve bank started to take the shine of property investment. In the summer of 2022 there were record numbers of properties for sale on Trademe and due to the tightening of lending criteria by banks meant that no-one was buying.

it couldn’t be a better time to invest in dunedin property

There are a heap of good fundamental reasons for buying in Dunedin. We have outlined these in an our 2020 blog about buying an investment property in Dunedin. In the winter of 2022 we are witnessing a dropping market. It is near impossible to pick the bottom of a correction so seasoned property investors seek to buy on the way down. Now is the time to be looking.

There are plenty of good deals in the marketplace right and few buyers to compete with. This is what I recommend looking for:

1) New builds - I’ve written about the pros and cons of investing in a new build and these still apply. The financial pressure on developers to sell these properties is increasing throughout 2022 and we are seeing developers going into liquidation regularly. As such, you should be able to get a good deal.

2) Blue chip - location, location, location. There are some properties that you should never sell. During this time there will be individuals and families who are forced to sell these types of properties. As an old adage says - it’s better to pay a fair price for a great property than a great price for a bad property.

3) Where you can add a new dwelling - I’ve written in a previous blog about exemptions to the interest deductibility legislation changes. This opens up the option for the conversion of single dwelling properties into two dwellings or more. In Dunedin, this could apply to upstairs and downstairs townhouses or 4 bedroom 2 bath flats that change into two 2 bedders. There are rules that apply so check those out before buying.

How Can Dunedin Property Management Help?

Dunedin Property Management is an independent property management company and we don’t offer real estate sales. That means we offer unbias advice. This is important. If the property management company is linked to the sales company then it is in both of their interests to provide inflated rental information. This is good for the sales agent but not good for the buyer. If you’d like an independent rental appraisal then click the button below.