A survey undertaken by the NZ Property Investors' Federation has highlighted the professionalism of Property Investor Association members.
The survey shows that these property investors are highly experienced, invest a good proportion of rental income back into repairs and maintenance and provide warm insulated homes for their tenants.
“On average 8.7% of rental income is being spent on repairs and maintenance by members of property investors’ associations,” said Andrew King NZPZIF Executive Officer. “This and other findings of our recent survey prove that the rentals owned by members of affiliated associations are the best choice for any tenants.”
“Using data gathered from the survey, we estimate that Association members are spending in excess of $400m per annum on housing and building related services. This includes $225m on mortgages and loans, insurance ($35m), building and housing materials ($74m), lawyers and accountants ($16m), property managers ($26m) and trades people ($27m). This is a significant contribution to the NZ economy.”
In addition the survey found that a third of respondents had purchased heaters for their rental properties in the last year, with the majority of these being heat pumps. Over 90% of the properties had some form of insulation, with insulation being added to 13% of properties over the last year.
A typical member is likely to have been investing in property for at least 17 years and has been undertaking regular repairs and maintenance during that time. He or she is more than likely to be managing his or her own properties, selecting the tenants and doing the regular property inspections.
Many of the respondents have often been members of their local property investors’ association for more than 5 years, with more than a third being members 10 or more years.
The reason for this continuous membership is likely to be that the investor has been able to learn about building and managing a property portfolio from the association’s educational programme of speakers and workshops while enjoying the networking with other successful property investors.