OK - I've just experienced first hand the fallout from the LVR restrictions. This morning I showed a property to a couple who were planning on buying their first home (sometime) next year.
Their intention was to stay in their current rental until they found somewhere to buy. Now, they will have to rent for a longer period (saving more) they've decided to look for somewhere a bit nicer. Good for us - occupants will be staying longer and be prepared to pay a bit more - but pretty unfortunate circumstances for the renters thinking their days of renting will be soon over.
Stable - property matters is not going to 'cash-in' on the type of scenarios that come from LVR restrictions. We'll still set rents realistically and in accordance with the current market. For all those that will be renting a tad longer - at Stable we'll continue to focus on making renting a great experience for you.
So - because people are going to have to rent longer does this mean that the Wellington Residential Property Management market will boom? Media reporting indicates that Auckland and Christchurch are definitely going to see an upsurge in rent price-points from landlords wanting to squeeze every cent possible out of the market. Great news if you are looking to grow your portfolio because the market will possibly stabilise.
Any thoughts on what you think might happen in Wellington?
OK - I've just experienced first hand the fallout from the LVR restrictions...