House rentals in New Zealand are experiencing greater levels of demand, in part due to the rising cost of house prices in New Zealand. The recent increase in the prices of property in New Zealand, due to the recent housing boom and the strength exhibited by the New Zealand economy through the recession, has created a situation where many first time home owners have to delay the purchase. As a direct result, there has been a corresponding increase in the demand for rental properties; and these are not simply basic accommodation. Some desire to rent upmarket properties in exclusive areas. Furthermore, those who originally require rental properties as a ‘stop-gap’ measure as they save for a deposit on a property, often enjoy the freedom and financial independence of renting so much that they continue to do so in lieu of homeownership.

These trends in the marketplace indicate to the astute investor that the market for rental properties is progressively expanding, with a range of homes and locations in terms of price and quality being demanded. The desire for secure tenureship is additionally creating an environment where individuals, couples and young families want the perceived freedom of renting and reduced financial responsibility, but without the instability that is traditionally associated with New Zealand house rentals. For this reason, many property owners are finding that a vast majority of current and potential renters are requiring longer term contracts. Therefore, the demand for rental properties is not only increasing, but as a result, the rental rates are too. In addition, longer terms contracts are providing security in income for owners of house rentals in New Zealand that are able to experience demand for a range of property types; from basic housing in modest areas to luxury apartments in downtown environments and large family homes in neighbourhoods with exclusive schooling options.

These trends are indicative to a marketplace which can provide capital gains and security of tenure and income from New Zealand house rentals. However, choosing the most suitable property in highly desirable areas is essential when considering the short and long term viability of the investment. Employing the skills of an experienced real estate consultant will help you get the market information you require and the expertise to avoid the common pitfalls, which may lead to reduced capital gains, rental income and possible financial ruin. With the services of a leading New Zealand real estate agency on your side, your rental property investment will stand the test of time.