Source: Radio New Zealand
Concerns about running costs, council rates and a shortage of good tenants remain high. RNZ / Quin Tauetau
With the economy facing many weaknesses, including war in the Middle East, it is the mum-and-dad investors shouldering the impact.
Independent economist Tony Alexander regularly surveys a group of 200 existing property investors.
He says his findings show a record number of mum-and-dad landlords are planning to sell their properties.
The survey found 38 percent planned to sell their properties and that just 12 percent were looking to buy.
Alexander said professional long-term investors were staying, but small investors have been exiting the market.
“The professional investors in residential property who look for a positive cash flow along the way who’ve done it perhaps for generations, those people are still there.”
He said concerns about running costs, council rates and a shortage of good tenants remain high.
Now the Iran war has added another layer of uncertainty.
“If we look more specifically just at what’s happening at the moment of course it’s a concern about interest rates going back up again as a result of conflict in the Middle East and a new weakness in the economy.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
