What’s in store for the property market in 2020? As the upcoming election approaches, it will be a key feature influencing New Zealand’s property management companies. But how will the upcoming NZ affect interest rates for investors? A few signs have been spotted and predictions have been made by property experts for the year ahead. However, market conditions and situations can change in the blink of an eye and what seemed to be a reasonable prediction at one time can end up becoming a dropped matter overnight. This doesn’t mean the entire outlook isn’t positive, a number of significant property deals are predicted to take place early in 2020 which is expected to set the pace for a bullish growth in the property management agency. Having said that, here are 7 predictions related to the overall market.
RISING HOUSING PRICES
After two years of crashing house prices and slow growth in Auckland, the housing market has turned and there is now a seasonal lift in prices in Auckland. Which leaves housing experts with predictions for the year. Considering the annual price inflation has reached 5.6 per cent, there are predictions that it will get as high as 7 per cent by April 2020. There are also expected changes in a home mortgage.
Prices should increase as banks have become more willing to give out home mortgages. Earlier, banks were only opened to giving out loans to those that were capable of making mortgage repayments even if the interest rates got to 7 per cent. This requirement is changing slightly and making way for improved growth in the property market.
INCREASE IN HOUSING SUPPLY
Although the government fell flat on its efforts to establish 100,000 kiwiBuild homes, building industry experts are enthusiastic about the latest development taking place. A new bill has been put forward to parliament proposing future homeowners would take care of the expenses associated with road construction, water pipes and other required building equipment.
A programme is already in effect in the north of Auckland, where private investors and government bodies will collectively raise about $91 million to kick-start the project to build 9000 new homes. Potential homebuyers can consider this as their first investment property and one of their best real estate investments where they will pay a yearly fee of $1000 for up to 35 years in order to repay the debt.
Without this development, developers would have to wait for up to 10 years for the Auckland council to generate the required amount of money for the infrastructure. While experts conclude that the bill is still in its early stages it also holds the potential to reveal large plots of land in Auckland for faster housing and will eventually reduce the low availability of houses and keep prices low.
RETURN OF INVESTORS
Investors had been dominant buyers during recent housing surge, but the strict lending rules that were set in place slowed them down back in 2016. These regulations included a requirement for landlords and rental management companies to ensure all rental homes were insulated by the year 2019 and to get them up to standards of healthy homes by the year 2021. Nevertheless, there’s a potential for an uptick in investor buying properties. It has appeared that the decrease in returns on other assets such as interest rates and also the desolation of the capital gains tax were the key factors influencing these smaller class of investors. Other influencing factors include term deposits, body corporate levies, lower interest rate as well as banks’ willingness to offer more loans. Individuals with three or four properties were among those willing to invest back in the market.
VACANCY AND SUPPLY CONSTRAINTS
Considering the reduction in industrial vacancy rates in the main cities and regions, housing industry experts predict that there’ll likely be an increase in the demand for land and the greater measures towards new-build construction. The markets whose supply constraints that can meet up to demand within a suitable interval will more increase in price growth.
EMERGING RETAIL GAP
As customers become more selective in their spending, some changes are expected to take place in the retail chain. There’s an expected growing divide between their preference and dislikes. Large format retail, open centralised luxury retail and flagship shopping centres are becoming popular amongst consumers which will, in turn, provide positive results for owners.
BIG DATA INFLUENCE
Another rising factor in retail is a technical approach. The power of technology allows for an increase in customer data capture in order to provide improved levels of personalisation and enhanced user experience. In addition, with regard to the potential of the 5g network, there could be new initiatives to explore. They range from improved delivery to more immersive customer experience and improved back up of data.
RISE IN SECONDARY STOCK
The industry still tried to maintain its ground during the hard times in the market though it also showed true strength during good times. This makes it a likeable asset class for the majority of investors. Rental growth and environmental farm plan practices are expected to continue in 2020. This creates an opportunity for more investors to go into secondary premises where more profits could be generated.
INCREASING LEVELS OF IMMIGRATION
The yearly net immigration is gradually declining, reducing to about 50,000 back in 2018 from a previous total of 72,400 in 2017. But this rate is still on the high side based on past numbers. This decline will continue in 2020 creating an increase in local housing prices.
Although migration from international locations is a contributing factor to population fluctuations, there are no established facts that the inflow of foreign-born immigrants to a particular location are tied to the increase in local house prices. On the other hand, there is a binding relationship between the migration of new Zealanders residing abroad into a new location and the progressive increase in local house prices.
So when Wellington City Council recently updated its website with a note from incoming chief executive Barbara McKerrow saying “work will progress in line with the Council’s 27 September 2017 resolution”, all hell broke loose.
It was read by some as McKerrow making no commitment to revisit the council’s decision on the lease and sale of its land.
Guests at Westhaven Retreat can hike through the South Island’s second largest forest of native Nikau palms to secluded beaches, take farm tours, go mountain biking and horse riding or simply enjoy coastal views from a heated indoor pool.
Harveys Real Estate Papakura issued a clarification after a Facebook account, purporting to be property manager Lynette Snook, posted an advert for a rental on Great South Rd that included racist comments.
Growth in the numbers of Chinese tourists to New Zealand had been slowing in the past two years so the coronavirus was impacting on top of a reasonably entrenched pattern of softening Chinese demand and at a time when a lot of hotel rooms would be opening.
The Tenancy Tribunal found Natashia Shelford-Marsh damaged the home intentionally – and that the damage to it went beyond fair wear and tear.
Landlord Westerman Property Solutions Ltd complained to the tribunal that Shelford-Marsh didn’t comply with her obligations at the end of the tenancy.
We’ve hit 2020 and as always there will be new trends flying around this year. If we consider the commercial construction industry, there have been many trends that have come about over the last few years. This means that there will also be new trends coming in 2020. It’s important to be aware of any upcoming trends in the commercial construction industry to ensure that your business stays ahead of the game and doesn’t fall behind. As with anything, there are trends that have been and gone and there are trends that will always remain. Commercial construction has a number of areas that can be affected by trends. Bespoke residential builders, bathroom redesign and landscape retaining walls are all areas that trends will have an impact on. A building company will have a great deal of influence over trends in the construction industry as will an architecture home design / designer. If you are considering moving home then look for the best new home builder as a simple google search may give you insight into who is following the best trends currently.
Additionally, there are trends that have been introduced but are constantly being improved as technology improves. In 2019, there were changes in the commercial construction industry with regards to technology so it will be interesting to see what we think will shape the commercial construction industry in 2020.
Being green is continuing to trend in the commercial construction industry as more and more businesses look for ways to include sustainability when it comes to construction. For instance, green construction, which relates to completing projects in a way where resources are used efficiently and the environment is considered. This trend covers all bases of a project, from the beginning where planning takes place, to the design, maintenance, construction and even the demolition.
It’s not just software that has improved in the commercial construction industry. The use of drones has risen in popularity in the commercial construction industry as this technology has now become more affordable to companies. Drones are extremely useful in the commercial construction industry as they can be used on construction sites, for example, to ensure that construction workers are away from any potential hazards. The use of drones has helped by enabling data to be collected and they have also certainly improved the efficiency, accuracy and safety on a construction site.
The technology related to drones is always being improved and the different options available have also increased. This means that commercial construction companies are now able to use drone technology without having to break the bank. These advancements, as well as their affordability, ensure that drones continue to trend in the commercial construction industry in 2020.
- Virtual reality
Virtual reality has been around for a while now and the commercial construction industry has found lots of uses for it so far, so there’s no doubt it will continue to grow in use in 2020. Virtual reality has always been better known in the gaming industry and for years we have seen how games have become more realistic due to the advances in this technology.
The beauty of virtual reality is that it allows you to look and grasp complex aspects in order for you to gain a better understanding of a project. For example, this kind of technology is invaluable for commercial engineers as they are able to interact with their designs so that they can be tested before they go into construction. When you are able to see a design in its natural habitat, design flaws that you may not necessarily have picked up on before can be highlighted and then fixed. This is a huge saving on a commercial budget.
- Management software
The commercial construction industry has always been a bit behind when it comes to technology. That said, some commercial construction industry trends will always get through. Management software in the commercial construction industry has become quite advanced in the commercial construction industry. These days, aspects such as timekeeping and project management have all been put together to help commercial construction businesses. As these aspects continue to advance, this will be a trend that continues to increase in popularity in 2020.
- Safety-related equipment
In 2020, the use of safety equipment and the standards of the products will continue to improve. There have been a substantial number of deaths in the commercial construction industry and for this reason, safety is paramount and safety equipment needs to improve. It’s now possible to purchase boots for the construction industry that can link up to Wi-Fi. These boots are also able to tell you if a worker is tired or has injured themselves. Although these boots are quite new to the market, they may be difficult to get a hold of at the moment. However, eventually, these smart boots will soon be something that we will see in the commercial construction industry. Other safety equipment that we will soon start to see more of is cooling vests and fabric that is moisture-wicking. These three safety items are just a few examples of the kind of equipment that is being used and introduced in the commercial construction industry and it is bound to increase in popularity in 2020.
It’s clear to see that over the last few years, there have been quite a number of trends in the commercial construction industry. It’s not difficult to understand that some of these trends will continue to play an integral part in the commercial construction industry in 2020. As the commercial construction industry continues to advance, it becomes obvious why it’s crucial to keep up-to-date with the latest trends in order to remain competitive in the market.
The property market has always been a buoyant area that you can make some serious money in. However, it has to be said that when you can make lots of money in a particular area, it also carries a number of risks. Whenever you are looking to invest money in property, you need to look for some sound advice from those in the know. Best real estate investments and buying investment property are two good terms you could use on the internet to see who is trending and who is rating on Google for this type of information. Agribusiness management is also a great place to start your property portfolio if you are relatively new to the property industry. There are a number of places that you can gain advice from if you are new to the property industry. Body corporate or corporate entities are a good place to start looking at their models, to see how other people have made their money. Keeping up with the latest high-tech trends and information systems is also vital when you’re embarking on this type of investment. The world’s economy changes, so must the way we do our business so thorough research is always advisable.
It’s also easy to see how technology has caused huge changes in many industries over the last decade. Technology has impacted travel, community, retail, media and transportation to name but a few. However, many of us think that the real estate industry hasn’t been impacted by technology but they couldn’t be further from the truth. We will take a look at how technology has impacted residential property management companies and let you see whether you as a property management agency or rental property management company are keeping up with these high tech changes.
When a property management company goes digital it means that everything ends up in their cloud i.e. all interactions, questions, requests, documentation, manuals etc. This then means that anybody in the company can access this information regardless of where they are located. In fact, a lot of the documentation used is now electronic from the offset. The majority of leases are now digitally signed, which saves time and makes things easier to organise as it doesn’t mean you need to meet up in person to sign the lease.
- Going digital
It is possible now for a property management company to be completely paperless and go digital. In the past, a property manager would need to head to their filing cabinet if they were ever asked a question related to a contract or lease for example. These days, there is no need to even have a filing cabinet. Storing paper records makes it very difficult to be organised and it also means space is required. This means that in this day in age, in order to keep up with the hi-tech industry, property managers are able to simply scan documentation and dispose of any paper files which means there is no need for filing cabinets.
There is no need for actual offices these days as smartphones have helped to replace them. Rather than spending time in an office, many property managers are now able to be on hand at the actual property rather than in an office, as they are able to access everything they need using their smartphone. Smartphones also mean tenants are able to contact someone at any time, in the event of an emergency. The hurdle that property managers now face is to remain organised as all communication has gone digital.
Many property management companies do not take cash and the majority of tenants pay online. One of the reasons why property management companies avoid taking cash is that firstly it’s a security risk. The second reason is so that a tenant cannot say that they have paid when in actual fact they haven’t. By using digital transactions, all the details can be kept on a cloud and can be accessed by the property manager as well as the tenant.
- Logging information
By using technology and going digital, a property management company is able to keep information about each property, that they own, on record. All information regards to each property can be kept neatly and safely and in one place online and is therefore easy to access when needed.
- Personalised service
Now that everything has gone high-tech, property managers should be able to complete complex processes quicker. This means that less time is wasted and the correct information is sent those that require it.
There are a number of aspects that you need to consider whenever you are considering property management. It is clear that any industry that we are in today benefits from high-tech innovation, as it keeps your business fresh and makes sure that you are keeping up with your competitors. Most of us now judge a company on their ability to be able to interact with this with ease and also how high tech a company actually is. If you see a company is lagging behind, you often feel that although they may be a good business, you may feel that they are too old fashioned and keeping up with the new way of doing things. There has always been a place for the way we conduct a business in the past, but it is evident that we must now show that your business is interested and keeps up with any trends that are apparent. Even if we don’t necessarily want to import the latest trend and high-tech products into a business, we must be fully aware of them so that we can input them where needed.
If you are running a business from home, you may not stay on top of the technology that is developing for your business. However, technology plays a huge role when it comes to how effectively your business runs and ultimately it’s growth. There are some technology trends to keep an eye on this year. Cybersecurity, 5G and software unification are all aspects that can impact your business. Any business of any size needs to be able to keep up with its competitors, ultra fast broadband providers are a must to ensure that your business can transact and communicate very quickly. One final aspect that businesses should be looking at is wireless technology. A wireless cctv system can protect your business and will be more reliable than a wired system. The same can be said if you supply your workforce with phone chargers. Rather than having wires in your office, you can get a wireless charger buy online which will give you a wire-free environment.
Below we will take a look at these three aspects of tech as well as other aspects that you need to make sure that you are up to speed with when running a business from home.
- Influencer marketing
In order to show off your company’s brand and products, make sure that you use personalised marketing and social media influencing to reach out to your potential market. No longer do we use traditional print for advertising in order to increase sales. As a new business, you need to ensure that you are open-minded when it comes to marketing and this means you need to be in the know when it comes to influencers. Customers are looking for authentic products and brands and recommendations are high on the list of priorities. An influencer is one form of a recommendation as this person is someone that consumers trust. You will need to do some research as to who is a good influencer in your industry and also ensure that you are aware of the needs of your business.
- Social media advertising
Similar to influencer marketing, as a small business, you will need to be aware of and use social media advertising for your business. Social media advertising relates to aspects such as pay per click. This advertising has increased as consumers want to see adverts related to the products that they are interested in mine. Social media advertising is an efficient and budget effective way of targeting your consumers. It is worth pointing out that you should never underestimate the power of social media as in some cases you are able to post or tweet an idea or product that can be retweeted many times by people that are not related to your business. This w means you are able to touch new clients and customers which you may not have done so in the past.
- Artificial intelligence
Artificial intelligence has been a topic that has been spoken about a great deal for a good few years. As a small business, you should start to see how useful artificial intelligence is when it comes to running your business. For instance, the use of customised consumer experiences as well as voice assistance. Although you may think artificial intelligence is not something a small business from home uses and it is for bigger businesses, you are actually incorrect. Artificial intelligence can help small businesses to provide experiences that customers are looking for and it will also mean that tasks which cause time wastage can be automated. Many small businesses find that time is of the essence and if you spend a huge amount of your day completing manual tasks such as data input, it has been said that artificial intelligence can be a real benefit in helping to reduce these issues.
There have been some high-profile data breaches over the last couple of years and small businesses are still under the risk of cyberattacks. In fact, over two-thirds of cyberattacks affect small businesses. In order to make sure that you are up to date with the latest technology in cybersecurity, you need to be aware of what advances have been made. As a small business, you need to think along the lines of a large business when it comes to security. Therefore, make sure you take cybersecurity seriously to ensure that you are not a target.
In the 1980s, 1G was released and now we have come a long way to see 5G. 5G claims to be able to provide speeds that are faster than 4G. 4G technology follows on from 2G and 3G technology. Once 5G becomes more widely available, it is clear to see why it is crucial to make sure you are aware of the developments that are in place when it comes to 5G technology, even though it’s still in the infancy stage.
- Integrating software
It is becoming common for new tech solutions to keep appearing in order for effective communication. Many businesses use different but separate ways to contact one another. It is believed that soon, all of these different ways will merge so that only one solution is needed to cover all aspects of communication. Although it will be difficult to create this software, once it has been achieved businesses will have seamless communication, using just one platform. The overall benefit of this is that you will save time and your business will become more efficient.
It is clear to see that that the world of tech is developing quickly and we have pointed out the reasons why it is important to ensure that you are up to speed with it if you are running your own business from home.