Maximising your investment
The real estate market in Taupo has become increasingly attractive for investors due to its increasing demand for rental accommodations amidst a tightening rental market. Large impact being significant interest rate hikes have limited affordability for first-time homebuyers, broadening the pool of individuals looking for rental options. The result is a clear disparity between the supply of available rental properties and the soaring demand, underlining the critical necessity for more rental accommodations.
Ben Westerman, the Director of Westerman Taupo, offers valuable insights into how investors can leverage this situation for sustainable investment returns. He points out the enduring popularity of Taupo as a place to live and work, fuelled further by continuous net migration, ensures a persistent demand for property. This demand creates challenges for tenants wanting to secure housing due to the limited availability of properties, which in turn opens up lucrative opportunities for investors.
Westerman emphasizes the importance of regular market rent reviews to adjust rents in line with ongoing costs, ensuring investments remain profitable. Moreover, the protection offered by the Residential Tenancies Act (RTA) through the Tenancy Tribunal for resolving disputes adds a layer of security that is not present in more transient accommodation options like Airbnb.
“One of the critical advantages of investing in rental properties over holiday homes, or Airbnb’s, is the security of a steady income stream.”
Recent changes in the New Zealand government are poised to further benefit real estate investors. Legislative amendments, such as allowing landlords to claim up to 100% of interest expenses by April 2025 and potential laws that may reduce tenants’ notice periods and facilitate easier termination of tenancies, signal a favourable shift for investors. These legislitive changes are expected to alleviate some of the apprehensions that have previously deterred investors from entering or expanding within the market.
Additionally, Ben underlines the value of having a professional rental company manage investment properties. These companies, including Westerman Taupo, offers services that provide peace of mind to landlords, ensuring their investments are protected and well-managed. From regular inspections to diligent rent collection and adherence to legal standards, the benefits of engaging a professional property management team are undeniable. This level of service not only supports landlords but also ensures tenants receive professional treatment, fostering a beneficial relationship for all parties involved.
In summary, Taupo presents a promising landscape for real estate investment, particularly in the rental sector. With an expert like Ben Westerman providing essential market insights and the backup of the professional Westerman team, investors can confidently navigate the complexities of the real estate market to secure profitable and sustainable investment returns.
“These changes are expected to alleviate some of the apprehensions that have previously deterred investors from entering or expanding within the market.”
Having a qualified rental agency should be simple and give you peace of mind. At Westerman, we offer just that. With audited trust accounts, qualified property managers, and a deep understanding of legislation, we ensure your property is well looked after.
Our audited trust accounts provide transparency and security while our qualified property managers are experienced professionals, dedicated to managing your property effectively.
We prioritise regular inspections, diligent rent collection, and accurate record-keeping. We keep landlords informed throughout the process, providing reassurance that their investment is being managed professionally.
Tenants benefit from our professional service, knowing their needs will be addressed promptly and their home is secure and compliant with regulations.
At Westerman, we pride ourselves on our commitment to excellence. For an elevated level of service, call us, the experts who simply do it better.
Ben Westerman
Director, Westerman
Rachel Robinson
Business Development Manager, Westerman