Homeownership makes financial sense for many families and individuals. With the ability to capitalise on tax benefits, adjust mortgage rates and refinance, along with increases in equity value, there are many benefits for those looking to purchase a property. However, homeownership is not for everyone. This may be the result of a lifestyle choice or a certain stage of life that one finds themselves in. With property values increasing, house rentals burnley the amount required to be saved for the deposit is simply unachievable for many. Those that can afford the deposit are sometimes disheartened by the calculation of large mortgage payments over a long period of time. With many required to dedicate large proportions of their weekly income to the sustainment of the mortgage payments, young families and individuals are finding the situation somewhat unattractive. Not only are there mortgage repayments to consider, but properties come with a multitude of other fiscal responsibilities, such as taxes, insurance and maintenance expenses. As a result, there is a growing dependence on quality New Zealand house rentals for those in this stage of their lives.
New Zealanders have a long standing history of homeownership, and these aspirations are still alive and strong within the community. However, the rising values of property mean that many potential first time homeowners, as well as individuals and families that have or are currently experiencing financial hardship, are turning towards rental accommodation. As the economic pressures continue to raise house prices, and at the same time, increase the burden of expenses on a decreasing amount of disposable income, the trend towards increasing demand for New Zealand house rentals is set to continue.
In a recent report published by BRANZ and Scion Research, the future sustainability for housing of a growing population will heavily rely on a stock of quality rental properties being readily available, in the marketplace. Trends in demographic drivers which will add fuel to the demand for New Zealand house rentals include: an ageing composition of the population, increasing racial composition, the decline in the marriage rate and delayed marriage (delayed household formation), decreasing fertility and delayed childbearing, increasing divorce rates, an increase in one-person households and single-parent households and a decline in the number of households with children.
These demographic trends will not only result in a generic increase in the demand of quality rental accommodation, but for a variety of such properties. For example, the traditional three bedroom home is simply not required by the solo parent or recently divorced. Perhaps a range of apartment style accommodation options would best satisfy this group.
Whether you are currently renting, contemplating on moving into rental accommodation or aspiring to own a rental property… the news is good. The increased demand for rental properties, now and into the future, will result in many investors seeing the financial potential of purchasing rental accommodation. With more rental properties on the market, those who are searching for quality rental accommodation will have a larger pool to choose from, with a range of housing styles to suit their specific needs.
CENTURY 21 New Zealand Real Estate is a wholly owned New Zealand company with over 60 independently owned and operated offices and 350 sales associates.
With the backing and support of the world’s largest residential real estate sales organization delivering unmatched levels of service across 68 countries and territories CENTURY 21 is truly an international brand with over 8,000 independently owned and operated offices bringing a wealth of worldwide expertise to a local market.