For those who have missed it, the last
few months have challenged the norm
throughout New Zealand. We now queue
to get into supermarkets. Our restaurant
experiences are different and for most of
us, it’s been an opportunity to get used to
spending more time at home, as well as
learning how to work from home.
The global pandemic that has caused all
of these changes is no secret, but the true
severity of the impact on the country still
remains to be seen. What we do know of
course, is that we can expect the impact
to be felt, at least some capacity, in the
property market. Though only time will tell,
it does get the mind boggling as to what
could happen next. After all, investing in
property is always a slight gamble, and the
best investors are the ones who can get
ahead of market trends and adapt their
plans quickly when challenges are laid out
in front of them. Luckily, we’ve gone to the
crystal ball and played out a few different
scenarios. The most likely? A change in the
role of short-term accommodation.
The reality for Airbnb owners in the capital
is unfortunately, a relatively bleak one.
With four entire weeks of the year spent
through lockdown, and then further weeks
of arguably prime time letting, including
Easter weekend, Queen’s Birthday
weekend and school holidays going astray
thanks to the impact of the lockdown.
Bookings, and consequently income have
no doubt all but dried up. This will create
a huge strain on the owners of this type of
short-term accommodation.
While income may have stopped, the
mortgage payments, insurance payments
and cost of owning and operating an
Airbnb have remained. This will no doubt
mean a number of operators of these
Airbnb’s will regrettably be forced out of
the short-term market and into a more
long-term option, needing some stability
IS THIS THE END OF THE
when it comes to inc
true and more of thes
to the longer term re
see a sudden influx o
Given that this period
is already renowned
as one of the more d
property, with Februa
the mainstay of the W
could start to see th
more difficult to let, a
the benefit of choice
the market.
Needless to say, long
for a number of conc
there is no need to
will of course still be
term stays within
government, major ba
businesses based he
number of overnight
coming to do busine
the country slowly b
normal, these stays
at least some sup
accommodation in th
time that we return t
In the interim, we c
a number of expats
Zealand, seeing it as
the USA or Europe, w
the opportunity to sta
they search to buy.
However, the most li
there will not quite be
go around. Investors
with a lower income
usually accustomed
require them to s
necessity or becau
returns are no long
of managing the in
The Reserve Banks
lift the LVR restrict
some interesting