The age-old struggle of corporations versus the individual investor is a familiar tale in the property market. Traditional investors have long worn their underdog status as a badge of honour, navigating the complexities of property investment with a hands-on approach and a puritanical attitude towards their craft. However, as much as investors may want to maintain their traditional methods, the reality is that build-to-rent (BTR) developments are ramping up to be a viable and attractive option for tenants. As steadfast as you may be, turning a blind eye to the BTR trend could mean missing out on crucial market insights and opportunities. Keep your eyes wide open, friend. Keep your eyes wide open.
Here are five compelling reasons why private property investors should care about BTR developments:
1. Market Trends
Keeping a finger on the pulse of market trends is essential for any savvy property investor. Build-to-rent developments are gaining traction in New Zealand, reflecting broader changes in housing demand and investment strategies. By understanding BTR, investors can better predict and adapt to shifts in the market, ensuring they remain competitive and well-informed about potential opportunities and risks.
2. Competition Insights
Knowing what your competition is up to is crucial in any business, and property investment is no different. Build-to-rent properties often attract a segment of renters looking for long-term leases, quality amenities, and professional management. By staying informed about BTR developments, investors can identify gaps and opportunities in their own rental offerings, helping them to remain competitive and appealing to tenants.
3. Tenant Preferences
BTR developments are designed with tenant preferences in mind, often featuring high-quality amenities and services that cater to modern living needs. Understanding what these developments offer can provide valuable insights into what tenants are looking for, even in traditional rental properties. Investors can use this knowledge to enhance their own properties, improving tenant satisfaction and retention.
4. Economic Indicators
The growth of BTR is also a reflection of broader economic conditions and trends. Factors such as urbanization, housing affordability, and demographic shifts are driving the demand for BTR properties. By analyzing the rise of BTR, investors can gain a deeper understanding of these underlying economic indicators and make more informed decisions about their own investments.
5. Future Planning
Even if build-to-rent doesn’t currently fit into an investor’s portfolio strategy, it’s important to keep options open for the future. Market conditions and personal investment goals can change, and being knowledgeable about different property investment models, including BTR, ensures that investors are prepared to diversify and adapt as needed.
Bonus Reason: If You Can’t Beat Them, Join Them
For those investors who find their traditional rental properties competing with BTR developments, there’s always the option to pivot and explore BTR investments themselves. What’s that they’ve always said about eggs and baskets? Understanding the ins and outs of BTR can provide a solid foundation for making such a transition, potentially opening up new avenues for growth and profitability.
Learn More from Industry Expert Sam Stubbs
To dive deeper into the world of build-to-rent and its implications for property investors, don’t miss the upcoming presentation by Sam Stubbs, CEO of Simplicity. Titled “Right in Front of Your Peepers: BTR’s Transformative Power on the NZ Property Landscape,” this keynote speech will explore investment diversification and innovative approaches to build-to-rent developments.
Event Details:
- 7pm Tuesday 13 August
- Parnell, Auckland
- Recorded for APIA TV
- Click here for more information and to register
Stay informed and ahead of the curve by understanding the build-to-rent trend and how it can impact your property investment strategy.
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