Let me start out by saying I am not an investment advisor. What I can comment on is the current rental market.
3 things work in Wanaka’s favour as a good bet when it comes to buying an investment property - good quality tenants, modern stock of housing and a growing economy. For the last 4 plus years in particular, tenant demand for both long term and seasonal rentals has exceeded supply of houses.
The majority of tenants are good prospects being employed or having the means to support themselves. There is a mix of those who have moved here for jobs and the lifestyle , families renting while they build , couples, singles and working professionals who are geographically mobile and prefer to rent than buy.
On the whole, Wanaka is fortunate to have good quality housing stock. Most houses are relatively modern and where they aren’t, landlords have been quick to take up special offers to update insulation and make other improvements. The majority of houses we are asked to appraise for rent are well maintained and would comply with rental requirements that come into effect in July 2019.
The Wanaka economy continues to grow, although some tourism indicators show this has slowed compared to a few years ago. Infometrics shows that over the past 5 years, employment growth, which is an economic and social well being indicator , has increased by 7% . The biggest influencers of regional growth - accommodation, construction and retail all grew between 2017 and 2018. There is continued debate over an enlarged Wanaka airport and local residents look forward to a larger retail offering particularly in the new Three Parks development.
This coupled with a historic good capital gain prospect means that Wanaka is indeed a good place to buy an investment property. Always seek independent advice before buying a property. Read more about the Wanaka and Queenstown market in the June edition of NZ Property Investor magazine.