October has brought with it some key achievements for our team to celebrate, with our top three property managers for the last quarter named at our recent Lodge Awards. Join me in congratulating Zack Cathcart, Jordan Slight and Sophie Orr for their hard work over this period.
We’ve also received the results of our 2022 Net Promoter Score (NPS), with Lodge Rentals achieving a score of 67, 51 points above the industry average score
of 16. NPS is a powerful global metric used to measure customer engagement and advocacy levels, and we see this result as a marker of our people-focused approach, from owners to tenants and those in between.
Moving onto other exciting events, 18 October saw Lodge hold its latest Investors Seminar. We had a significant turnout to our auction rooms, so thank you to those who came along on the night. For those who were unable to do so, I’ll look to cover some of the insights in the remainder of this blog; it might just see you signing up for the next one.
We had property industry stalwart David Kneebone on hand to impart his learnings from decades buying, selling and managing property in Hamilton, as well as mortgage advisor Jordan Cameron and property accountant Ross Barnett. Whether attendees were seasoned investors or at the start of their property investment journey, I felt there was crucial knowledge to be gained and applied now and into the future.
Investors Seminar: a highlights package
If you believed everything you heard around BBQs and bar tables, or recent media stories, you’d think the forces that drive property investment had turned upside-down, that the market is well and truly done. Apparently unprecedented global events have changed the investment landscape forever.
David Kneebone led with this sentiment, countering it by sharing a simple rule from investment magnate, Warren Buffet.
“When others are greedy, I get fearful. When others are fearful, I get greedy.”
David expounded on this idea and pointed out a few key related truths he’s learned from 40 years in the property investment game. His first idea was simple enough, and one we have covered recently: buy now.
Buy now while others are hesitant because the concerns that hold them back have no substance, which means there are investment opportunities waiting.
“Unprecedented times” is the phrase many toss around, but crises have always come and gone and the property market has grown in spite of them. Just take a look at our recent September statistics; tenant demand is definitely trending upwards as we head into the last quarter of 2022.
David was 18 when he purchased his first house in 1980. Since then he has watched his property portfolio climb through the 1987 crash, the GFC of 2008, changes in economic policies, depressions, inflation spikes, a worldwide pandemic and a Ukraine war that threatens to destabilise the global economy.
David has invested through it all and is no longer fazed. If anything, he noted that the stability of property is the surest hedge against inflation and the safest way to steadily build wealth.
“The market has peaked” is another assertion people make. David debunked this, because if investors keep their properties long enough, the peaks and troughs will even out while capital gains slowly rise.
“I can’t afford to invest” is the other obstacle. While that might be true for some, others are needlessly ruling themselves out.
Jordan Cameron of Total Mortgages addressed the financial side of property investment. He spoke about the ‘secret of ‘leveraging’ and how banks have changed their policies to allow customers to take advantage of their equity.
A common issue investors face is having enough equity to purchase their next property and remain within Reserve Bank guidelines. The RBNZ’s new build exemption has allowed many Kiwis to seriously raise their investment portfolio and Jordan proposed the way to do this is:
- 80% on Owner Occupied
- 60% on a standard investment
- 90% on exempt properties (turnkey/new builds)
During the seminar, Jordan gave specific examples of how these exemptions could be applied to expand a property portfolio.
Hamilton is flying
Of course, we couldn’t hold an Investors Seminar in Hamilton and not address the significant growth that the city is currently experiencing. Without wanting to cover ground we have previously, as far as property investment is concerned, Hamilton is envied.
While Hamilton’s place within the Golden Triangle (alongside Auckland and Tauranga) is clear, we discussed how Hamilton’s infrastructure is in a better place than both Auckland and Tauranga. Everything about this city is set up for unprecedented development.
We’re feeling the upside of that in the property market. Educated professionals are coming into the city and they’re looking for places to rent. Even without the usual influx of international students, the university student market is testing our rental capacities. David and I have discussed that there may be massive rental shortages once Waikato University properly opens it gates.
There was certainly lots for experienced and beginner investors to think about. If you’d like to explore the opportunities, our team would be glad to sit down and show you what’s available. It’s a good time to be involved.
Jason Waugh
General Manager, Lodge City Rentals
