New Investment options the future of the market?

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New Investment options the future of the market?

Although some aspects such as the possibility of a capital gains tax could keep people from investing in property, its seems that the market is still going strong and that investing could still be a viable way of remaining in the market with a steady cash flow and portfolio. We have a look at some of the strong parts of the market that are performing high:

Low ends of the market

Recent reports have revealed that the average value of residential properties in Auckland over the three-month period to the end of February this year was $1,044,576, which was down 0.9% compared to the same three-month period a year earlier.

What may surprise some is that the same reports indicate that it appears to be the more expensive homes and suburbs in the upper end of the market that are leading the decline – in both price and volume.So it seems that many are investing their money and time into the lower ends of the market which is seeing an increase of activity and keeping the local market healthy.

Those are that’re taking advantage of this market are first time buyers, as a recent import indicated that increased activity of first-time buyers returning to the market are obviously looking for more affordable homes. Whereas those looking to buy and sell at the top end of the market are usually less likely in an immediate rush to buy/sell and will be monitoring the market in the coming months.

With many buying into these suburbs, it will be interesting to see how the QV values grow in the coming years and if these suburbs become up-and-coming in the local market. The Auckland market has remained quite steady in the past seven years, and during that time has seen some more outlining suburbs grow in value, usually due to housing affordability.


Commercial property

Commercial property is quickly becoming a viable alternative to residential property investments, proving to have better rental returns and in that outgoings such as rates and insurance are generally paid by the tenant. Property experts in Auckland have seen increased activity in the commercial property market, especially with newer locations being quickly built in the city center and outlining suburbs quickly being snapped up.

According to experts, in some cases there was more interest in property investors in new property than owner-occupiers. With major changes coming to residential investments and tenancy laws in the near future, building a commercial property portfolio can be seen as a great way to remain in the market with more security around tenants and laws. Commercial property is also seeing an up-tick with more land being zoned and built into commercial properties.

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Ravi Mehta