Hi guys
I've just come across an apartment in Queenstown which looks like a really good deal. My options obviously are to have it managed so it's rented out to short-termers, or rent it longterm.
I was just wondering if anyone knows:
1. Are prices expected to keep dropping in Queenstown?
2. Does one generally get better returns there short-term or long-term leasing?
3. Is it easy to find a long-term renter in today's market? Rent would be about NZ$550, it's near the centre, with lake views.If anyone can help out, I'd really appreciate it!
Cheers,
Dave.
Hi Dave,
Not sure about specific answers to your questions as I am not an area expert in Queenstown, NZ.
Some general thoughts though…
1. Do some research online about what is available for rent in the area and also prices. See how much is available now and how much is available in the next 2 – 6 weeks. Lots of property available now speaks to excess supply.
2. Call agents in the area and pretend to be a renter and ask them questions about availability and price.
3. Call an independent agent and talk about the property. Ask them to negotiate on your behalf, which they should be happy to do as they will share the commission with the selling agent.
4. Make sure you understand all the costs of rental management. The NZ agents like to take their pound of flesh – both in management fees and also a surcharge on repairs etc.
5. Personally, I'd rather have a long term tenant on less rent and less churn than short term tenants where the re-marketing fees are higher, as is the likely damage to the property as people move in and out.
Merry Christmas,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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