Living The high Life - The Answer To Wellington's Housing Crisis

Posted by Jack Vale on June 20, 2017 3:54:25 PM NZST
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There is a simple fact that us kiwis are now facing, and that is that New Zealand doesn’t have enough houses to go around. 😢

 

Local councils and governments are crying out for more to be built with an expected population growth to 5 million people in the next three years.

There is no doubt then that the housing crisis claims thrown around by the media may have more standing than initially suggested.

 

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Caption: Stuff.co.nz

 

Wellington appears to be on track to hit its housing goals, but it appears now that there is only one way to go to solve the housing shortage.

 

Developers now must look upwards. 🌇

 

The housing shortage has caused a new discussion around height and density limits throughout the city suburbs.

Apartment developments are appearing frequently and as more and more appear, trepidation may arise amongst investors and buyers as to whether apartments are a worthwhile buy.

We now look at the pros and cons of buying an apartment, both as an investor and an owner occupier.

 

 

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We now look at the pros and cons of buying an apartment, both as an investor and an owner occupier.

 

When it comes to tenanting properties, nothing has more interest than a central city apartment.

Tenants love them and owner occupiers have increasingly been turning to apartment living over the course of the last few years.

But why?

For many, it is quite simple.

Convenience... 👌

Living in a central city apartment lends itself to a certain lifestyle and Wellingtonians are famed for their coffee culture.

 

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Wellington itself is home to more cafes and restaurants per capita than New York City. 🍸

 

Apartment living means that all of this and more are on your doorstep.

The daily commute becomes a short walk or bus journey on the excellent public transport links boasted in the city and with plenty of places of interest so close by, it really does offer it all.

 

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For the most part, apartments are extremely secure and private.

 

The body corporate are responsible for maintaining communal areas to a high standard which can make apartments a pleasing place to live not to mention freeing up more time for you to relax and enjoy your home.

It’s clear to see then that apartment living certainly has its pros and it's obvious now why tenants are always in the search for high-quality apartments.

Other than the inevitable interest from tenants, buying apartments as an investment can be a strong move for landlords🥇

With a consistently high demand, the rental price in apartments consistently stays strong and often increases each year.

With little to no maintenance costs throughout the course of the year, this leaves investors with a strong yield, allowing them to quickly move to grow or upgrade their portfolio of property.

Apartments often attract young professional couples or corporates on contracts in the city in question.

 

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These people are generally excellent tenants and are looking for longer term tenancies.

 

This gives landlords an excellent opportunity to secure a high-quality tenant whilst minimising vacancy periods, again presenting the opportunity to grow the portfolio quickly.

Well publicised over recent years is the changing face of property investment, with more and more legislation putting emphasis on landlords providing safe, secure, dry and warm rental property.

The benefits for property investors when buying apartments is that a lot of the demanding work has been done for you already.

 

Buying new constructions will often mean that code surrounding insulation requirements has been met.

 

Depending on building methods, the property may even find itself exempt with concrete walls, floors and ceilings.

This naturally lowers the costs of running the property for landlords and ensures that you are compliant with this aspect of the Residential Tenancies Act.

Likewise, with smoke alarms, there is a chance that the work will have been done for you.

Many apartment complexes have built in fire systems, maintained and managed by the body corporate responsible.

While you are still responsible for the smoke alarms inside your apartment, having a central fire system that is frequently checked will ensure that the rules and regulations are up kept for the building.

If you are interested in buying an apartment or would like to find out what your apartment might return, send us as email on the contact us page.

Topics: Insider, Developments, Portfolio Growth

 

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