Latest news with #propertyinvestment
RNZ News
5 hours ago
- Business
- RNZ News
Property investors: It's not time to break up yet
Investors buying older properties might do them up which leads to economic activity in terms of providing work for builders and trades people, Jeremy Williamson says. Photo: RNZ / REECE BAKER Calls for New Zealanders to break up with property investment and focus instead on investing in more productive assets such as growth companies are missing the point, says an economist at one property investment firm. Jeremy Williamson, head of private wealth and markets at Craigs Investment Partners, said there was momentum building for a move away from the country's "love affair with property and property investing". "New Zealand is always going to have an affinity with property investment but there are so many benefits for us as a country if we can turn the dial away from it, into more productive parts of the economy." He pointed to the returns that were possible from investing in the sharemarket. "If you put $100 into a New Zealand house 30 years ago it would be worth nearly $600. If you put it in New Zealand shares, it would be $1100." But Ed McKnight, property economist at Opes Partners, said that was ignoring the power of leverage. Because people only put a deposit in to the purchase of a property, and borrow the rest, it can mean bigger returns. "If you compare a standard property index or prices to shares, shares increase in value faster than houses. But houses can help you grow your wealth faster than shares… it comes down to the debt, the mortgage. "It's a double-edged sword. Whenever you use a mortgage to invest, whether in a house or business it makes your returns larger, which can either be good if the value increases, or it can be bad if the value decreases. "That's the reason why, if you put a 20 percent deposit into a house and your house value goes down by 20 percent you've lost your entire deposit at least on paper until the asset recovers in price. "But if you put 20 percent into a house and the value goes up 20 percent, you've doubled your money. I call it the mortgage magnifier effect. The bigger the mortgage you use, the larger your return compared to the market return. "So property doesn't go up in value as fast but it can be a better wealth builder because you can borrow against it." He said it was also not accurate to say that property was not a productive investment. While it would not grow the economy if an investor bought a house and sat on it, he said, people who were buying new were encouraging economic activity. "The builder or developer is taking an older house and building a new one, it drives the economy forward. You have people building houses and nice, new, warm dry homes for tenants. "Even if you are buying old properties, many investors do them up. That's economic activity, taking something that might be a bit run down and you're improving the quality of the New Zealand housing stock, you're spending money at Bunnings or Mitre 10, it means plumbers and electricians get jobs. It's not true to say property investors don't add anything to the economy." He said simply buying and selling existing shares did not add to the economy, either. "Because buying a share in a company doesn't mean that the money goes to the company for investment. If you buy a share in NZME, the money goes to the person I bought the share off, not the company itself. "Even in IPOs the money sometimes goes to the founders. Only a small fraction of My Food Bag's IPO was earmarked for investment. A large part went to paying out the founders. So share investments aren't always as 'productive' as the average reader might think. "Though if more people invest in shares, then there is more money available when companies do raise money for further investment. Similarly, property is more productive than non-property people give it credit for. Many investors don't just buy and sell houses. They build new ones, or do them up. This improves the housing stock in New Zealand and does contribute to higher GDP and a higher standard of living." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Telegraph
12 hours ago
- Business
- Telegraph
Property buyers warned against luxury European holiday home schemes
Have you invested in a fractional shares scheme? Email: money@ Property buyers are being urged to think twice before investing in schemes that offer shares in luxury holiday homes. The companies offer fractional shares in homes in popular European holiday destinations including the Costa del Sol and Balearic Islands in Spain, and ski resorts in the French Alps. The schemes offer buyers ownership between an eighth and half of a property. Those who own one eighth of a property generally enjoy access to it for six to seven weeks each year. But experts said that while the scheme could cut accommodation costs abroad, those using it to invest could be caught out by higher than anticipated fees that erode any potential returns. Others, experts said, could struggle to sell up. This is not a timeshare Shared owners generally benefit from at least two visits during each of the high season, 'mid season' and low season. The cost of a share in a property varies depending on its location and size. One popular estate agency offers an eighth of a four-bedroom chalet in Menorca, Spain, for around £121,000. Another offers a share of the same size in a three-bedroom villa in Mallorca for £386,000. In addition to the initial purchase fee, shared owners generally have to pay monthly or annual maintenance and administration fees of up to 2.5pc of the share cost each year – even in months when they themselves are not using the property. Darren Fletcher, of wealth management firm Chase Buchanan, said: 'Ongoing expenses such as maintenance, management fees and refurbishments can sometimes be higher than anticipated, reducing overall returns and potentially dampening enjoyment.' Fractional ownership schemes differ to timeshare schemes, which allow holidaymakers to buy the right to use properties for a certain amount of time each year, and were particularly popular during the 1980s and 1990s. Jason Hollands, of wealth management firm Evelyn Partners, said: 'Unlike timeshare schemes, which provide a right to use a property for a certain period each year, fractional ownership gives you a stake in it – typically through a limited company – exposing you to the potential for price gains.' But exposure to movement in the property's price could go both ways, and even if a property's price stayed still, fluctuations in foreign currency could quickly wipe out a portion of the investment in terms of pounds sterling. Unregulated schemes Hollands said that there are other potential dangers that come with this type of investment. He said: 'From an investment perspective, there are of course numerous pitfalls. Firstly, these are unregulated schemes – property is an illiquid asset, and you may not be able to easily dispose of your share. There is also the potential for disputes between owners around things like maintenance and upkeep costs.' It comes after Spanish officials earlier this year announced plans to implement a 100pc tax on property purchases by non-EU buyers. Experts said anybody considering fractional ownership of a holiday home should be doing so first and foremost because they plan to use it over a long period of time, rather than as an investment. Fletcher added: 'Unlike traditional property ownership, selling your fractional share can be complex. The secondary market for these shares is often limited, meaning it may take longer to sell, possibly at a discounted price. 'Clients should also be aware of platform risk, meaning the reliability and financial stability of the company managing the fractional ownership arrangement. 'Regarding investment returns, we would encourage clients to manage expectations carefully. Fractional holiday home investments usually don't deliver substantial capital appreciation compared to outright property ownership. Instead, most of the benefit lies in lifestyle enjoyment rather than significant financial gains.' *Please note that by submitting your content to us you are consenting to The Telegraph processing your personal data where required by law. For further details please see our Privacy Notice.
Zawya
13 hours ago
- Business
- Zawya
DMDC enters property investment sector in Dubai
UAE - DMDC, one of the region's fastest-growing interior design and construction firms, has announced the launch of its newest division - DMDC Estates - a property investment and renovation arm primed to reimagine Dubai's property landscape. The strategic expansion, unveiled during an exclusive private press conference, represents DMDC's largest investment since its founding. DMDC has committed AED70 million to start a portfolio of premium residential projects, with flagship developments already underway in Arabian Ranches, Jumeirah Golf Estates, and Emerald Hills, said a statement from the company. It has already planned a follow-up investment of AED30 million in the second half, which will bring the total capital commitment to AED100 million for 2025 alone. Unlike its existing operations, DMDC Estates is fully owned and operated by the company, focusing exclusively on acquiring, renovating, and selling high-end properties across Dubai. With no external clients, the division will allow the company's design ethos and construction expertise to flourish in complete autonomy, said the statement. DMDC pointed out that it will continue to accept client projects in interior design and construction across the region, while DMDC Estates will focus on independent property investments and renovations. Since its founding in 2021, DMDC has emerged as one of Dubai's standout firms, bringing together a multidisciplinary team of over 700 professionals dedicated to delivering integrated solutions for residential, office, and retail environments, said a top official. "We are excited to finally share DMDC Estates, a division that has been months in the making," remarked its CEO Raji Daou. "The first completed project under the new devision is already turning heads: a breathtaking six-bedroom villa in Arabian Ranches. Elegantly redesigned from the inside out, this villa serves as the blueprint for many more curated homes currently in the pipeline," he stated. Daou said: "The market is constantly evolving, and we are delighted to be part of Dubai's dynamic real estate scene in a brand new way. Through DMDC Estates, we'll be curating exceptional masterpieces that reflect our design philosophy and high standards." By combining cutting-edge technology, innovative creativity, handcrafted excellence, and sustainable building practices, DMDC continues to push boundaries in every corner of the industry. "The debut of DMDC Estates reinforces the company's long-term vision: to shape not just interiors, but entire lifestyles – one property at a time," he added.
News.com.au
a day ago
- Business
- News.com.au
Top value-adding jobs property owners and investors neglect
Property has long been considered an excellent investment choice in Australia. But while land value tends to go up over time, buildings tend to fall into disrepair – making regular maintenance an important part of ensuring homes and investment properties hold their value as the market rises. However, not all investors keep this front of mind, says owner of Ray White AKG Avi Khan. 'I think investors generally buy properties and don't factor in the maintenance costs these days,' he says. 'The capital growth is what most investors look at now but they should also factor in maintenance costs for their properties for the next three to five years.' Founder and managing director of the ASPIRE Property Advisor Network and PIPA director Richard Crabb agrees that a proactive approach to maintenance is key. He suggests investors treat their properties as a business asset by doing maintenance and strategic upgrades to ensure they achieve the best outcome over time. REGULAR MAINTENANCE To do this, Crabb suggests landlords get a roof inspection and have the gutters cleaned every 12-18 months as best practice. 'It's not up to a tenant to get up on the roof and clean the gutters,' he says. 'If the gutters get overrun and filled with rubbish that can create water damage and issues for the property. 'Another one is airconditioning servicing – a lot of investors don't think about it until it's too late. But there can be mould, dust and build up can happen.' He says regular servicing can prevent issues with health and liability while prolonging the life of the airconditioner. Khan says landlords should factor in certain 'non-negotiables' when budgeting an investment purchase like roof and gutter maintenance, termite protection and general paintwork. 'We estimate that every landlord should put aside $3000-$4000 a year just for maintenance works every year,' he says. 'The same should apply for property owners living in the property.' He says it's important not to ignore critical maintenance requests, as these can easily grow into much larger sums if not dealt with swiftly. LOW COST HIGH IMPACT When it comes to keeping the property looking and feeling fresh over time, there are certain 'low cost, high impact' updates that can go a long way, says Khan. These include repainting the house or replacing the carpet. 'These are the things that buyers notice instantly,' he says. Crabb recommends replacing or deep cleaning the carpet every five to seven years depending on the condition it's in. He says it's better to do these things as you go along rather than at the time of sale because it will enable you to attract better tenants and maximise your rental return. CONSEQUENCES OF NEGLECT If you haven't kept on top of regular maintenance over the life of your property, you could have a hard time capturing the attention of buyers when you sell, says Khan. 'When it comes time to sell a property, you've got 10-15 seconds to make a good impact on the buyer,' he says. 'If you don't keep up your maintenance, if you don't give your house fresh paint and carpet and all the other things over three or four years then it's likely you won't get the price that you want.' If you do want to fix any problems before you sell, you could be in for a nasty surprise, he adds. 'If you don't do your upkeep in terms of your gutters, roofs and things, your $3000 is looking like a $15,000 bill in a couple of years' time,' he says. 'That's the drawback of just ignoring things. You won't be able to sell for a premium price and then when you do go to do those repairs you are going to be spending so much more money.' MAINTENANCE CHECKLIST Make sure you stay on top of these top maintenance jobs to ensure your property holds its value as the market rises: * Roof inspections * Gutter cleaning * Safety inspections, including smoke alarms, gas inspections and pool compliance * Termite inspection and protection * Airconditioner servicing * Repainting
Globe and Mail
a day ago
- Business
- Globe and Mail
Terreno Realty Corporation Sells Property in Tukwila, WA for $9.5 Million
Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, sold an industrial property located in Tukwila, Washington on July 28, 2025 for a sale price of approximately $9.5 million. The property consists of a 2.1-acre improved land parcel which is 100% leased. The property was purchased by Terreno Realty Corporation on December 30, 2020 for $6.6 million. The unleveraged internal rate of return generated by the investment was 10.3%. Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey; Los Angeles; Miami; San Francisco Bay Area; Seattle; and Washington, D.C. Additional information about Terreno Realty Corporation is available on the company's web site at Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management's beliefs and on assumptions made by, and information currently available to, management. When used, the words 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'may,' 'might,' 'plan,' 'project,' 'result,' 'should,' 'will,' 'seek,' 'target,' 'see,' 'likely,' 'position,' 'opportunity,' 'outlook,' 'potential,' 'enthusiastic,' 'future' and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
