Property investment continues to be a favourite “pastime” for Kiwis and Taupo has always been one of the favourite areas in New Zealand in which to invest.
The natural beauty of the area together with an impressive variety of activities on offer attracts visitors and permanent residents alike.
Who can resist the crisp clean Lake for swimming, boating, water sports or world class trout fishing? Visiting the majesty of the snow-capped mountains just a little over an hours' drive away is a must for every skier, from beginner to the most experienced.
Natural hot springs and steaming pools are a year-round attraction and some just come to Taupo for the leisurely shopping and variety of dining experiences.
The location of Taupo in the centre of the North Island makes Taupo an ideal place for meetings, conferences or a family get-together. It is this location that has helped Taupo rise to be the "Events Capital of New Zealand".
It seems that most weekends there is some event on in Taupo whether it be a national sporting event, an international event such as Ironman or the Great Lake Cycle Challenge, or any number of specialised events like equestrian, BMX, swimming, yachting, orienteering, car and motorbike racing, horse racing and numerous other activities.
One thing we know for sure, once you've spent a little time in Taupo, you will be back!
An “oops” in our life!
Sales Growth Slows
The rental enquiry is still very buoyant as available properties remain scarce. In spite of this there are several properties advertised in Taupo at the moment that appear to be above a “reasonably achievable” rental level. These listings are evident by the length of time they are showing as sitting available. Many online sites show the dates that properties have been listed, and there are a number that have been unrented for over 6 weeks. Remember the easy mathematical equation you can do?
If a $380 per week property is listed above the reasonable and recommended level (say $20 above for our example), and sits empty for an extra 3 weeks – potentially that is $1140 rent that will be lost for the sake of trying to gain an extra $60.
Owners who have listed at the right rent level and marketed properly should not have empty properties for this length of time. This is just one reason why our Property Managers work hard to get rental appraisals accurate and this can save our Owners a considerable amount of money.
An “oops” in our life
Recently our normally reliable computer programme decided to throw a few curve balls at us and some payments were delayed by 1 or 2 days. Our apologies to Owners who were affected by this.
This event was a timely reminder to us of one of the “good practice” principals when using rental income to meet mortgage repayments or other deadline outgoings. Although computer hiccups are rare (our team can’t remember the last one – must be years ago), they do happen and of course it will be at the most inconvenient time. You also never know when your Tenant may have a crisis and miss a payment. When rent is transferred to your account it may be for considerably less than you were expecting.
To avoid this being an issue for you, make sure that any regular payments such as your mortgage are due to go out of your account 3 or 4 days after the rent is due to go in your account. Most banks are happy to change your repayment date at no cost to you, although the first payment may be slightly higher than normal. And don’t forget our exclusive “No Rent Arrears Guarantee” that gives you peace of mind for just $95 plus GST per annum.
Sales growth slows
The latest sales information for Taupo real estate shows that the number of monthly sales has levelled off and recent months have been similar when compared to the same month last year. While there is still plenty of action it appears that the recent heat has gone out of the market as growth slows.