New Zealand Military Housing?

Question

One of my friends from New Zealand mentioned an investment opportunity involving buying and holding housing in NZ and getting guaranteed rents with members of the military as tenants.  I tried Googling it but found nothing.  Anyone in NZ know anything about this and if it is legit?  I'm a New Zealand resident so I'm interested in learning more for my own personal investing. Thanks!

Micki M. · Answer

@Dean Letfus and @Hadar Orkibi thank you for clarifying and for your insight.  Had I bought in NZ when I first lived there I'd be sitting pretty by now, but with the way the market has risen it's not something I'll jump into unless it really makes sense.

Hadar Orkibi · Answer

Account Closed thats right, and thats why we are hear on BP.

Auckland and parts of Queenstown NZ are the only markets with high population growth and are the only Markets that out-preform the rest of the country by far. Ok Hamilton could be ok if you buy right but i rather buy in AKL.  I have few properties in AKL and done well on them, solid equity and ok rent growth in the last 4 years. Cashflow juts starting to come out after almost a decade of holding them.

Heaps of equity is great but we can make it work harder and generate more cashflow if diversifying to Markets Like Memphis etc.

Nick F. · Answer

Investor from Napier, NZ here.I've never heard of this personally, I know all NZDF housing is owned by a trust that's then owned by the government. Maybe this is some side-thing providing overflow housing?Most privately owned military rentals would be in Waioru, or in Trentham. They would certainly not be on some kind of deal whereby the govt sublets them to military staff though.

Dean Letfus · Answer

Auckland is its own market now Micki. It does not track the rest of the country, has much higher appreciation but much lower yield.  The safest place to invest if you have some cash!

Dean Letfus · Answer

You can get Housing New Zealand guaranteed rental in New Zealand but I have never heard of military specific. (I am a kiwi with nearly 15 years in the NZ market).  Depending on where you want to invest guaranteed rent is generally a bad idea in NZ. You end up at below market rents most of the time and int he case of HNZ the houses tend to get hammered. Stick to a main centre and just rent through normal channels you'll get a better result long term.

Glenn D. · Answer

@Micki M.

That sounds like an awesome idea.  I know that I like to rent properties in military towns and to military people, because you know that (as long as you verify) they will be receiving a housing allowance that should cover the rent.  Additionally if they mess things up and or skip out, you have access to compensation through their chain of command.  BUT that is for US military.

Regardless, good luck.

Glenn