Building to rent was to embark on changing renting in NZ but have been a little slow to gain traction. It usually represents a developer or a consortium of investors who build property to provide long term tenancies. Often these are apartment blocks and were often pitched as providing better quality rentals than mum and dad investors. Mum and dad investors who have been the backbone of our rental market provide a much needed service to the community. While at the same time get rewards of a much more secure retirement with property.
Build to rent coming to a town near you? Maybe not
Still mainly targeted at the big cities in NZ(Auckland, Wellington and Christchurch), as it provides the critical mass to provide the numbers that work for the investors. New overseas investor rules could provide some much needed capital in the otherwise slow sector.
Perhaps this might not be the silver bullet to increase much supply especially in the regions. As when times were good Auckland seemed to be the main area where build to rent made economic sense.
Why mum and dad investors still matter
In the meantime, Mum and Dad investors remain the unsung heroes of the rental market. These are the everyday Kiwis who, by purchasing one or two investment properties, help meet local rental demand—especially in areas where large developers simply won’t go.
Not only do they provide hundreds of thousands of homes to tenants across the country, but they also build their own financial security—often funding their retirement in the process. Far from being outclassed by build-to-rent, they continue to form the backbone of our rental housing stock.
Want to be part of the solution?
If you’re thinking about buying your first (or next) investment property, and want to understand how it fits your financial goals, we’d love to help.
Book a time to chat and we’ll walk you through your options, loan structure, and how to make a solid start as a property investor. Feel free to call as well Hamish 021 625 693, Dev 027 625 6655.
