There is no doubt that 2023 is going to be a bumpy ride for property investors. Wouldn’t it be SO GOOD to take a peek at what successful real-life investors plan to do for themselves? Snoop no more! We’ve gathered some friends to find out how they plan on growing and nurturing their portfolios in the next 12 months!*
In no particular order:
I’m all about the best bang for my buck next year. So I will put myself out there to learn and investigate strategies (such as renovations, cabins, developments, relocatables, and even boarding houses!). I will also start looking to buy for the medium term with the view to selling in 5 years. That’s a deviation from my tried-and-true buy-and-hold-forever strategy. It’s daunting, but I’m excited.
Natasha Middleton, president of the Waikato Property Investors Association and NZPIF’s 2022 Landlord of the Year
I’m going to be very strategic about scooping up high cashflow properties by targeting mortgagee sales. I’m from the grey generation so there is a lot to learn about how to use databases such as Property Guru and the PPSR to my advantage. If I keep at it, I am sure I will pick up some smart purchases from the second quarter of the year.
Peter Lin, APIA member
With the recent legislative changes against property investors potentially reducing the number of people investing in property but the more intensive property zonings allowing sub-division to smaller section sizes, we will be reviewing the potential to sub-divide our home and income properties, thus adding value and increasing the range of potential buyers. Not that we have any plans to sell.
Tim Munro, APIA board member
I will most definitely be budgeting for two weeks of vacancy on average annually into rental equations and encouraging my clients to do the same. With the economic uncertainty, exiting Kiwis on top of the automatic rolling of fixed-term tenancies onto periodic ones, it will be harder to maintain the historic 100% vacancies of the past.
Karen Withers, APIA member and owner of The PM Co
I was really inspired by Matthew Ryan’s talk at APIA about multiplying your income streams on one single piece of land. I’ve spent years buying and holding properties without doing much to any of them. That’s all going to change next year when I explore building and development opportunities under the Unitary Plan.
Max Hall, APIA member
Less by choice and more because I got caught out by the CCCFA. I’m going to have to spend Q1 next year catching up on tax payments after needing to throw my cash reserves into a project when the banks bailed on funding. Such is life.
Once I get through that, I will look around to see if there are any interesting projects in my area. I’d like to trade 2-3 properties next year in a JV capacity.
I have two properties that have easy space for a 3rd dwelling on the site under the new rules and the land is relatively flat. So I will start to scope that in the new year and work out the costs involved. The CCCFA will keep me from making a big splash, but I’m happy to tick along quietly after being quite aggressive for the last 6-7 years. If anybody feels stuck in a property that doesn’t make sense, remember that those who held property through the GFC are now wealthy. That’s a broad statement, and some people will be in a tight spot, particularly with the tax changes.
Nick Gentle, property consultant, commentator and owner of iFindProperty
My grand plan for 2023 is already underway in 2022! I’ll continue to run numbers for different scenarios (interest rates, loan terms, more P&I and tax changes) and renovate/upgrade my properties to increase rents. Given the number of headwinds that will be confronting investors next year, one of my personal goals is to put myself out there to network and share my knowledge with more people.
Amanda Watt, APIA board member and owner of Shortland Chartered Accountants
I don’t want to sell anything if I can, but if I have a project or trade with a big debt that isn’t not making me money, I’ll try and bail on it and sell. I would rather just have buy-and-hold debt and pay as much off as I can over the next year.
Mark Honeybone, APIA member and owner of Harcourts Alexandra Park (previously Property Ventures)
I’m going to leverage my time more, step back from the tools and get more done by using ‘A’ players in the industry.
Toby Yorke, APIA member
I’ll be looking to complete some renovations with the aim of making $100K per renovation. That should be doable in a down market when you can buy well and write your own deal. I’ll also be looking for my next hold. I’m very open to long settlements and early access as well as vendor ventures and money partners. If I can offer a good return back to short-term money partners, then that would be a win-win.
For my portfolio, I will only look for multi-income blocks of units and not limit myself to Auckland specifically, as some solid deals outside Auckland are cash positive with opportunities to add value.
A healthy mindset will be vital for 2023, and I will support my well-being by only having the right people around me.
Nichole Lewis, APIA member and author of Property Quadrants
What will you be doing to get the most out of the 2023 property market?
* We are not financial advisers and recommend that you seek personal financial advice before making any financial decisions. See our disclaimer statement here.