Spring Rental Market Update - 02/09/2010

It seems unanimous – winter has been the best that a lot of us can remember. The low water level in the reservoir at Ross Creek Reserve is certainly an indicator of the ‘dry’ winter we have had. Plenty of time yet though for the weather gods to give us a pre-Christmas soaking, so let’s not celebrate the positive effects of global warming on the Dunedin climate just yet!
Rental activity over the winter months has been very slow. This is no different to what we have noticed other years so no cause for panic. People don’t like to think about the upheaval of moving house in the midst of a cold Dunedin winter. We expect rental demand to pick up from about now through until Christmas and resume again in early January. For that very reason we encourage our property owners to avoid fixed term tenancies which come due for renewal in the winter months. In unavoidable situations where this does happen we look then for fixed term tenancies to take the property through to early in the New Year and then fix for 12 months – thereby getting the cycle back to the high rental demand time of year.
We wouldn’t say that tenants are getting ‘picky’ but high on their list of wants are the following:
1. Good heating – preferably heat pump/s
2. A modern or at the very least a functional kitchen with a dishwasher
3. Modern bathroom
Our strong relationship with Dunedin hospital has seen us working with even more new registrars coming to the city this year. They make for good tenants and are excellent to work with. We hope to once again work with the new MBA course members expected to start arriving towards the end of the year. Hospital and university ‘tenants’ generally want modern and clean one or two bedroom properties within walking distance. If you know of any such properties then please let us know as we expect the demand to be high.

August Rental Market Update - 12/08/2010

Demand for Dunedin rental properties  at present could best be described as flat! If you have been unfortunate enough to have a rental become vacant over the winter months Propertyscouts advise looking for a tenancy agreement which will take you through to January or February and then renew for 12 month periods. The prime time for renting in Dunedin is January and early February and it’s at these times you will get the best rental yield.

We subscribe to Tony Alexanders weekly overview emails. He’s an economist with the BNZ. Interestingly this week he said that if he were a ‘borrower’ he would hop off the floating rate and get into a 2 or 3 year floating rate. He believes that eventually a large number of people may jump from floating to fixed and that could cause a spike upwards in the fixed rates.

There’s still no sign of property investors packing up and getting out of investment properties in their droves as some commentators predicted pre-budget. At the same time though their aren’t a lot reaching for their cheque books in order to add to their property portfolios. It seems to be a very much ‘wait and see’ game at present.

Two of our property owners have advised that they are wanting to sell their residential investment properties. Both are ‘good renters’. If you are in the market contact Jeanette for details. We have also been asked to find a further investment property for an overseas investor. They have a budget up to $500,000, residential or commercial, that is offering good yield (8%+) and capital gain potential. If you know of anything then once again please get in contact with Jeanette.

The first of the clothing flyers have arrived in the letterbox advertising summer clothing, a sure sign that better weather is just around the corner. For us that means more tenants on the lookout for good rentals – so if you know of any good rental properties looking for good tenants…then please get in touch.

Rental Market update - 24/06/2010

The residential rental market is quiet at the moment, which is typical at this time for year for Dunedin. On average, rental properties get 10-15% less rent during winter compared to summer. Top of the list for tenants when looking at rentals during winter is heating and insulation. We are finding more and more tenants requesting heatpumps as the preferred method of heating. We have interest from medical professionals for short term furnished accomomdation. They are looking for  partments or houses that are within walking distance to the hospital. Contact us urgently if you hear of anything suitable.

Repairs & Maintenance on Rentals - 09/06/2010

An important part of property management is being able to attract good quality tenants. Propertyscouts like to ensure our rental properties are presented at their best to ensure the maximum rent is achieved and the tenants are happy. This means staying on top of any repairs and maintenance. All repairs carried out on a rental property are tax deducatable. Propertyscouts now have a permanant repairs and maintenance person who is a qualified builder. This means we can offer our clients very good rates to do any work on
their rentals or on their own properties for that matter.

2010 Budget for Property Investors - 28/05/2010

The budget: Well we can’t say we weren’t warned! From the start of the 2011/2012 year depreciation for properties with a predicted lifespan of 50 years or more (that pretty much includes all permanent material
residential properties) will have their depreciation rates set at ‘0’. We think this will see some investors exiting the residential property market. They will be the one who rely on depreciation clawbacks to make
the sums work for there properties. In the short term that could mean an increase in investment type properties going on the market. More properties for sale means more choice for the buyers which equals competition and probably a drop in prices. So what about the up side, if any? If you are like us and keen on
bricks and mortar investments then the next year or two could be a good time to add to your property investment portfolios. We think there will be some well priced properties coming onto the market over the next one to two years. And, with the removal of some investment properties from the rental market (sold to first home buyers etc.) we think there will be increased rental demand resulting in increased rent.

New Propertyscouts Team Member - 20/04/2010

We have recently been joined by Vincent Chee. Vincent will predominately be responsible for the admin side of the business leaving Jeanette free to provide the personal service she always has.
Vincent is from Sarawak in Malaysia, and has a banking background. He has an interest in property and is currently going through the process of buying his first home in Dunedin. He enjoys cooking, travel, and keeping things organised.

Help - Rentals Wanted - 30/06/2009

We have had an influx of good quality tenants looking for modern, warm homes and apartments. Tenants are wanting accommodation in the central city, Roslyn and Maori Hill areas. Can you help? Please contact Propertyscouts immediately!