82 | Russell Fredric Property experts at home in Dunedin The Dunedin residential rental market has been “hugely active” on every level during the past five years PROPERTY Propertyscouts Dunedin Dunedin Propertyscouts franchise owners Brad and Bex Harris’ personal passion for residential property investment led them to make their expertise available to landlords and tenants. They initially bought the Propertyscouts Invercargill franchise in 2014, but have now sold this, and have owned the Dunedin franchise since 2017. Before becoming franchisees, and as their own rental investment portfolio increased, Brad and Bex soon realised there was a market for a professional, independent property management service. After researching Propertyscouts NZ they found its core values aligned with their own. The Dunedin residential rental market has been “hugely active” on every level during the past five years, Bex says. Bex is especially skilled in advising investors on properties that would be suitable to purchase, what return they would yield and what improvements could be made to maximise their return. She is also very aware of tenants needs and consequently knows what things are needed to get quality tenants and what will maximise the potential of them staying long-term. “Dunedin didn’t have the huge increase in prices until a couple of years ago, so there was a lot of investment interest. “On the property management side its become a lot more commercial with the new legislation changes such as Healthy Homes, the removal of letting fees, there’s been a lot of change in the industry, huge reforms over that time.” A significant change has been the phasing out of interest deductibility which has resulted in investors needing to think outside the square. While a gross return of 5% per annum in Dunedin was previously acceptable and investors were happy to “buy and sit” they are now strongly looking for 6% or better and at where they can add value to make an investment viable. “They are looking at ways they can add value to a property so they are wanting to buy smarter.” This can include subdividing, or adding value to the house itself. “If you can subdivide and put a new build on the back, then your new build is going to have interest deductibility and the front property you may renovate or on sell.” Property is always going to be the “solid place” to invest, especially compared to a bank investment because property achieves both capital growth and an annual return, Bex says. This highlights the need to take a long-term approach and of investment versus speculation, she says. The complexity of owning and managing rental properties and the need to properly manage the potential risk of a case against a landlord being taken to the Tenancy Tribunal has resulted in more landlords engaging a professional property manager as opposed to DIY management. The dynamic student rental market in Dunedin in which large numbers of students look for accommodation in a short period is an example of the value of engaging Property Scouts to streamline the process of matching a property to a suitable tenant. “To try and navigate through these things is challenging and you’ve got all these different angles from tenants and landlords and property managers and DIY property management is a pretty lonely place to be doing it in.” Additionally, most people are busy enough in their day to day lives to be trying to manage an investment property successfully. Bex emphasises that while property is at the core of what they do, it is really a people business. “We are in the business of dealing with people. The house is one part of the situation, dealing with the owners and the tenants is about people. “It’s really important to make sure people are valued and treated with respect, that’s how everyone wins.” “If you can subdivide and put a new build on the back, then your new build is going to have interest deductibility and the front property you may renovate or on sell.” One call does it all Oncore is New Zealand’s leading team for residential and commercial repairs, maintenance, insurance work, installations and decorating. Call us today to discuss your project 0800 33 66 55 www.oncoreservice.co.nz Gutter cleaning and repair Painting And much more! House Washing Roof Washing ALL TYPES OF PLUMBING GASFITTING DOMESTIC & COMMERCIAL DRAINLAYING BLOCKED DRAINS WATER FILTERS CALLOUT SERVICE REPAIRS & MAINTENANCE IQP & BACKFLOWVENTILATION
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