Media Release – 09 October 2024

“Today’s 50 basis point interest rate cut is another sign that there are better times ahead for both property investors and renters,” said Matt Ball, spokesperson for the NZ Property Investors’ Federation. 

“To be clear, a lower cash rate today doesn’t mean rent cuts tomorrow – that’s not how things work. Many of our members are on fixed rate mortgages so it will take time for the OCR cut to filter through. 

“However, lower interest rates and the changes the Government is making to the rental sector will make it more attractive for people to invest in it. This will increase the supply of rental property, and increased supply will give renters more choice at a better price. 

“We are starting to see signs of investors getting ready to get back into the market. 

“Interest rates are falling, banks are keener to lend, interest deductibility is returning, and positive changes are being made to the Residential Tenancies Act, so there’s a better environment for people wanting to get into the business of providing rental accommodation.  

“There are still bargains to be had in the property market, particularly for investors ready to put in the hard work and add value to their investment by renovating the properties they buy.  

“On the downside, other costs like rates, insurance and maintenance are still high, it’s a tenant’s market and rents are static, so anyone getting into the business must ensure the numbers add up. 

“We get the feeling that cashed-up investors will be first off the block, while newer investors, who are more reliant on borrowing, may wait for interest rates to fall further. 

“It’s looking like 2025 could be the year when things really start to pick up,” he said.

For media inquiries, please contact: 
Matt Ball 
PR & Advocacy Manager 
PR@nzpif.org.nz