Martin's October Update
1 Oct 2013
Here in Christchurch we have adapted to a new normal as we learn to live with the aftermath of the Canterbury earthquakes. Life as a property manager has changed considerably but it is not all bad. Our team at A1 Property Managers are finding things a lot quieter than normal on account of the very few properties available for rent, hence not much time has been taken up for viewings. Also the current tenants are well aware of the shortage of properties available in Christchurch so they are behaving themselves as they don’t want to lose the home they have.
The company vehicles are getting a hammering as they grind and bounce around the still damaged streets as the council can’t repair the roads until the water and sewer pipes underneath are replaced. But repairs are well underway and different roads are closed each day which causes delays and diversions. There is a lot of activity in the property market with investors buying more properties due to increased yields. Yields have risen as the mortgage interest rate stays around the 5% mark and rents increase markedly.
However the window of opportunity is quickly subsiding as house prices increase due to competition from other investors and home buyers. There are still higher risk cheaper properties that can be purchased such as those that had no insurance during the earthquakes or those on land that insurance companies are uncomfortable to insure at present or those next to land that is unable to be rebuilt on.
I would expect to see some great investment opportunities in the Christchurch rebuild especially in the apartment or commercial sector.