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Preparing for future investing trends

Fast evolving technology and changing living requirements mean property investing in the future will offer very different opportunities and investors need to know what that means.

Tuesday, July 18th 2017, 1:30PM

by Miriam Bell

Increased use of industrialised building processes like prefabrication, the small house movement, crowdfunding of properties, a growing emphasis on smart and sustainable dwellings, the apartment boom…

These are all features of a changing property landscape which is moving on from the traditional Kiwi focus on family-sized, standalone dwellings on a quarter-acre section.

But the world of property is set to be further disrupted, by a convergence of new technology and changing social trends, over the coming years.

Investor and entrepreneur Kyron Gosse* is passionate about what this means for property investment in the future and was recently in Auckland to present on the topic at the Fast Forward Summit.

He told landlords.co.nz there are big waves of technological change coming up and they will have a huge impact on the property market and investors need to take note.

One major example of this – which is some way down the track – are technological transport advances like hyper loop transportation and flying cars that would dramatically decrease travel times over longer distances.

Gosse said this would address issues of traffic congestion and commuting for those who live further away from CBD areas, redefine what we call cities, and change the nature and value of suburbs.

“In turn, this would help to boost supply and impact on property prices and make property more affordable and accessible for more people.”

This might sound a tad futuristic for many New Zealand investors, but Gosse said there are other technological and social changes converging now which present new opportunities for investors.

Prime among these is the move towards the provision of communal and co-living spaces, which is a huge trend in places like the USA.

For investors, renting room by room and boarding house type arrangements increase yield significantly anyway, Gosse said.

“But the current concept of co-living spaces is better. There is a cool, fun aspect added to the traditional view of a ‘boarding house’. It is about creating communities of like-minded people which adds value to a property.

“Getting into this is something that investors can do now, especially as there is already a trend to convert commercial spaces into residential. It is a good way to make more effective use of space to get better returns.”

There is also a commercial precedent to this with the popular move towards the creation and provision of shared office space.

Other looming game changers are likely to be the use of 3D house printing technology; the growing use of smart building technology in both residential and commercial property; and the disruptive impact of blockchain technology on traditional financing.

Gosse said that all these things will impact on how we construct, finance, own and manage property, as well as how people choose to invest.

“For example, it will be more commonplace for people to buy shares in property, similar to the way they invest in the stock market.

“This opens up traditional notions of ownership and possession and makes property more accessible to more people.”

In his view, investors need to be aware that these massive technological and social changes are happening and be ready to jump on the opportunities they present when the chance arises.

“Don’t be afraid of technology. Embrace it. It makes it more accessible to get into property. And early embracers stand to make a lot of money while also helping a lot of people into homes.”

*Originally from New Zealand, Gosse owns an international portfolio of properties which he provides as medium term accommodation to entrepreneurs for co-living and co-working. A share of the profits is used to help underprivileged families in developing countries find a safe place to live.

Read more:

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« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchNew builds: what investors should know »

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Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
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HSBC Premier 4.49 2.60 2.65 2.80
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HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
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Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
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The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

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