MARKET DRIVERS
'MUM AND DAD' INVESTORS RETURN TO PROPERTY MARKET “We’re now seeing more ‘Mum and Dad’ investors eager to get into the property market, which is definitely helping to hold house prices up,” says Derryn Mayne, Owner of Century 21 New Zealand.
they can snatch a bargain. “Our Century 21 offices are
gain will always be delivered in the medium to long term.”
reporting more enquiries from the
The Century 21 boss says some
likes of city investors now taking
retirees presume they can’t
a greater interest in the regions.
borrow money, but many could be
Given the ongoing strength of our
pleasantly surprised if they can
regions, this makes perfect sense,”
show secure projected income
she says.
from a rental investment they’re
According to the REINZ and
keen to purchase.
Alexander report, Auckland now
“Our offices are different to most
has on average the lowest annual
because they’re all linked in with
rental yield with capital growth
Century 21 Financial New Zealand.
slowing, while the likes of the
Managing Director Julius Capilitan
Manawatu-Whanganui region
has significant experience in home
continue to perform strongly for
loans and financial services, and
residential property investors both
has brilliant access to some great
latest Monthly Property Report
in yields and capital gain.
mortgage deals.
showed 11 out of 15 regions have
Ms Mayne says feedback also
“Every day of the week Century 21
indicates that retirees are shying
is helping people of all ages and
away from commercial building
stages secure funding at the best
investments and syndications given
rates right through to ensuring
the economic fallout from Covid-19
investors build great property
and ongoing uncertainties facing
portfolios. Over the coming
now at play.
businesses and retailers.
months, we expect to do much
The cost of borrowing is at record
“Increasingly, residential property
released in June by REINZ and independent economist Tony Alexander which revealed one in four New Zealand agents say they are noticing more investors in the market. At the same time REINZ’s
experienced median price increases on the previous month. Ms Mayne says the arrival of ‘Mum and Dad’ investors is understandable given many factors
low levels; poor bank deposit rates are driving people to look for better returns; rents remain strong nationwide; the Reserve Bank has temporarily removed LVRs meaning 30% deposits from most investors are no longer required; and investors are increasingly hopeful
is looking like a good place to put your money. Housing demand still outstrips supply and sale prices continue to defy any doom and gloom. While rents in some areas will no doubt soften, the returns remain way better than bank interest and of course solid capital
C21 MARKET PULSE
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CENTURY 21
more of it,” says Derryn Mayne.
Pictured: Julius Capilitan
Her comments follow a joint report
