Buying a first home is increasingly getting pushed further down the goal list for many young Kiwi couples. Simply put, it’s just too hard for many people, who now require larger deposits to secure mortgages with banks. With this lack of affordability for those starting out on their journey towards owning a home comes an increasing need for rental properties in New Zealand.

That’s why Kiwis today who are looking to invest see purchasing rental properties in New Zealand as a logical choice. With the current economic climate forcing those with high mortgages and greater financial pressure to sell their homes, there is a strong, growing trend towards the lower cost option of rental accommodation. Smart investors will cash in on this by using rental properties to diversify their investment portfolios and help them fulfil their long term goals.

New Zealand's population is experiencing some quite dramatic changes, with one of the most obvious being the Baby Boomer’s hitting retirement age. Many of this generation will see the benefits in selling their larger properties in order to free up cash flow and take on smaller, more manageable low maintenance rental properties. On the other side of the scale is a growing increase in the ethnic population between ages 18 – 30, who will also be seeking rental properties in New Zealand as a solution for their housing needs.

The benefits of owning rental properties are widely known – tax advantages, capital gains, and an additional stream of income. Besides these advantages, there is also comfort for the investor in knowing that the housing market is a much more stable, appreciating way of building assets and wealth than dabbling in the fickle world of shares or stock. People will always need somewhere to live that is within their budget, and with rental properties in New Zealand, you are able to provide a viable solution.

So, if long-term investing is one of your goals, you only have to take a look at the statistics to know that the trend of rental property demand in New Zealand is steadily growing. Overseas markets are also seeing an increase in rental housing needs, but we are privileged in New Zealand to have affordable options available for the average Kiwi property investor. From the large to the small, the astute property purchaser really can have it all!

When investigating different options, it’s important to make sure that you seek expert advice. There are many unfortunate instances of people going heedlessly into purchasing a rental property without input from those who can compare and contrast all the pros and cons so a wise investing decision can be made.

With the right information, and an ever-expanding market, now is the time to look into owning your first (or second, or third!) rental property in New Zealand.