This last financial year has been very difficult for so many of us. In fact last year was my own personal ‘Annus Horribilis’.
Two of my very successful million dollar business suffered through the pandemic and although fighting for survival sadly were put into liquidation in 2022.
These companies are just two of the thousands of kiwi business that have had to close every year through the ramifications of Covid which could have been avoided if the NZ govt had chosen to do what the Australian, UK and US govt did to ensure businesses survived through those difficult times.
But we are still here and Propellor continues to be a strong and important force in the property investment industry.
I have been so lucky with the ongoing support of my clients, staff and family. Nearly half of Propellor’s business is with existing clients or their referrals’ which helped us through the GFC, two earthquakes, covid and more recently the changes in bank lending criteria, higher interest rates and the government’s determination to curb inflation. So where is Propellor in 2023? And where is the property market?
Well, I believe there’s now light at the end of the tunnel. It is now being quoted in the media that property values will start to rise again as early as June/July and banks are now starting to offer lower interest rates as well as cash incentives. So we are starting to see a growing optimism. Remember, After the stock market crash in 1987 the market declined by 22.6%. It recovered quickly. The Global Financial Crisis caused a 10% drop, but again property recovered quickly.
By 2014 prices in Auckland alone were 34% higher than the pre-crisis peak. There will always be something to give you an excuse not to invest. But long term, Property remains an attractive investment option for most people.
We are already seeing more New Zealanders coming back to us in the same numbers as pre covid. They recognise that the only option to have the mortgage on their own home paid off before they retire, is through investment property.
Propellor will be there to make that happen!