I don't invest in Auckland and by gross yield do you mean current rents to today's resale value?
I expect rents to grow on average 5% over time in main centres, in fits and spurts as they usually do. That could be nothing for a few years and then a large bump.
The government via the RBNZ has takes steps to decrease the number of investment properties but the number of people who want to rent will continue to increase. The RMA, other council inefficiencies, very high building costs and lack of scale in the building industry will keep building well behind where it needs to be and if it even gets a sniff of catching up the media will talk up oversupply and everything will tail off for a short spell until demand builds up. Nobody will invest in something without demand-driven growth.
Things that could reverse this:
1. Council reform
2. More building supply legislation
3. Politically driven drop in immigration
4. War or some other shock that changes our economic system, such as a massive rise of AI.
Regions vary too much to put a blanket growth figure on.
A recession would slow it down but in my mind the demand would build as population builds and once economic conditions dictate we'd be away again.
I expect rents to grow on average 5% over time in main centres, in fits and spurts as they usually do. That could be nothing for a few years and then a large bump.
The government via the RBNZ has takes steps to decrease the number of investment properties but the number of people who want to rent will continue to increase. The RMA, other council inefficiencies, very high building costs and lack of scale in the building industry will keep building well behind where it needs to be and if it even gets a sniff of catching up the media will talk up oversupply and everything will tail off for a short spell until demand builds up. Nobody will invest in something without demand-driven growth.
Things that could reverse this:
1. Council reform
2. More building supply legislation
3. Politically driven drop in immigration
4. War or some other shock that changes our economic system, such as a massive rise of AI.
Regions vary too much to put a blanket growth figure on.
A recession would slow it down but in my mind the demand would build as population builds and once economic conditions dictate we'd be away again.
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