It’s time for investors to look outside the traditional box and target niche strategies in order to secure affordable properties.
The huge capital increases that have occurred over the past few years across much of the country are now beginning to dry up.
That means many investors have taken the opportunity to step back and reassess their portfolio.
Yet a recent survey revealed that many investors plan to continue building their portfolio.
According to the 2017 ANZ Property Investment Survey, a majority of investors remain strongly committed to the sector, with almost 70% of respondents indicating they would buy again.
It also revealed that Auckland investors were the most keen to buy again, with 61% saying they planned to buy again in the next two years.
But the reality is that those who still want to grow their portfolio in the current market will have to start thinking differently.
They will have to look outside the realms of the traditional standalone three bedroom house to secure a deal at an affordable price and to enable them to add value in order to keep growing their portfolio.
Six niche strategies NZ Property Investor Magazine are seeing investors use in the current market to achieve those goals are:
3. Subdivide and add a dwelling
4. Replace old with new
5. Affordable holiday rental
To find out more about the six niche strategies investigated, subscribe to NZ Property Investor Magazine.