Investing in the unique Christchurch

Investing in the unique Christchurch
23-Apr-2018 Mark Honeybone

Investing in the unique Christchurch

I am a strategist who writes monthly articles discussing different topics around property investment for new and seasoned investors. I often have investors asking my assistance with Christchurch. We have many properties in this city and depending on what investors are looking for; we match them with the right opportunity.

In this article, I wanted to focus on the subject of investing in Christchurch, as many of the strategies previously discussed are possible in this city.

It is a unique market due to the past events and current opportunities with many investors making money there right now. However, you do need to be educated of various factors before investing in this city.

Creating Equity    

In a typical market, equity is created by renovating, sub-dividing or adding dwellings.

In the past, I used to smirk at a huge number of new investors demanding opportunities 20% under value and 8% yields. I had to explain to them the market situation and that it wasn’t possible. Now however when I get asked the same question, I confidently ask how many they are after and where. The ‘as is’ market in Christchurch has enabled investors from all walks of life to capitalise exponentially.

I’ve witnessed several deals where ‘as is’ properties were purchased by our customers 100k - 400k under value, usually 15-20% under registered valuation, then repaired, renovated and fully insured. When you are surrounded by the right team, anything is possible!

Creating Cashflow 

Serviceability in a tight market is paramount. By relying on positively geared properties in times of need can be the difference between sinking or swimming ahead. But how positive is positive? What we are witnessing in the Christchurch market is the rise of the short-term rental market. Developers around the city are catering for this need with brand new builds located within walking distance to the city and potential 10% + yields.
For a city that is receiving 30 million into developing its centre, the scenarios where investors are winning now and will win in the future is exciting to watch. This positions investors to be able to keep buying, increasing and enhancing their portfolio with quality stock.