As we roll through November, we’ve seen property viewings and tenancy applications rise over the last month, as the number of empty properties in our portfolio remains low.
T’is now the season where we typically see people starting to make their moves to prepare for the coming year, whether its relocating to be in a good school zone, shifting closer to a new job or upsizing or downsizing to suit their evolving needs.
With all this movement, canny landlords will be looking for the opportunities. Later in this blog I’ll highlight some favourable options that we’re seeing out in the market, including different suburbs and audiences that could provide ongoing benefits for long-term investors.
Another interesting statistic that caught my eye this month was that building alteration consents were up 14% per annum in the Waikato for the year to September 2022, which is stronger than the national trend. While this spending may pull back as the cost of living continues to bite, if the end-of-year shifts mean your rental property is between-tenants, it could be a convenient time to look at renovations you could undertake that will increase yield and attract good tenants.
There are plenty of renovations that can be undertaken without a building consent, which is good news as the same article notes that the average time to grant a building consent in October was 18 working days in Hamilton, excluding the time that the consent could be on hold waiting for further information. This may be due to building consents ‘defying gravity,’ up 7% nationwide for the year ending September 2022.
Investing in properties with a high-demand profile
We often get asked by landlords what types of tenants they will attract with their investment properties, either pre-purchase or once they are ready to sign the property up with Lodge City Rentals and find new tenants.
As the largest property management company in Hamilton, with reach into the wider Waikato, we feel we can be a pretty good judge of this. Linking to those above reasons for moving, here are some openings we’re currently seeing:
They’re looking for 3-4 bedroom homes in desirable school zones. We currently have a severe shortage of available properties in areas like Chartwell, Rototuna and Huntington, with those vacant being snapped up within days by tenants.
Students are looking for studio rooms and properties for flatting. Rental enquiries for suburbs like Hamilton East and Hillcrest, bordering the University of Waikato, are rising as students look to secure a room or flat for the February 2023 semester.
We definitely need more space and options for this market, with huge pressure on what is available. I know some investors have reservations when it comes to the student market, picturing hard-partying students trashing their valued asset. On the contrary, we generally find students are easy to deal with and respectful; they haven’t formed bad habits yet, and are often guided by their parents in how to look after a property. Plus, you may have heard but research has shown young people are drinking less than their parents’ generation, with their changing values and perceptions making them conscientious tenants.
With Hamilton’s healthcare services clustered around Melville, Hamilton Lake and the central city, low maintenance properties always do well in these areas. With medical contracts renewing or starting in January, healthcare professionals will be on the lookout as I write this.
These are just some of the opportunities we’re seeing in the market right now. If you need advice on buying an investment property with a high-demand profile, come and talk me or our Business Development Manager Nic Elliottyson. We are experts in this field and we’d love to help.
See you in December,
Jason Waugh
General Manager, Lodge City Rentals