Well what a few weeks we have had, even a day at the moment can make such an amazing change around the world, and even little old New Zealand is a part of it.

So what does it mean to us investors reading this article? Well who knows, there are so many variables and twists that are yet to come, I am sure.

Even between now, when I write this article, and when it is published there will be developments - I could be left with egg on my face! So the below is simply my take on things now, and I have tried to look at facts to base this on.

As I write this article, there is a shortage of property in most parts of the country. Even just last weekend I attended seven open homes on the

North Shore of Auckland, a market that has been quiet for a couple years, and it was buzzing with buyers. Our company Property Ventures Real Estate ran an auction in Mt Roskill on Sunday; there were about 40 people there and 10 bidders. The result was a cheap property selling $61,500 over the reserve. More buyers than property!

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What has happened over the previous few days of this article being written? Self-isolation of people coming into the country and the borders were closed last night. Many industries, in particular anything tourism or hospitality-related are going to be massively affected with hundreds of thousands of New Zealanders out of a job or experiencing at least some reduction in pay. I guess our social spending will be minimised a little.

‘I suspect in four months many properties will go on the market - a great time for real estate agents, and a great time for astute property investors’

So in the short term I still see the market going well as there are buyers desperate to buy, certainly not as many bas a week ago but many still are - that has been confirmed in the last couple of days.

Maybe in the short to mid-term some investors may wait and see what happens, as one thing that will probably happen is if this stays with us for the next six months or longer, many home owners that don’t earn what they did a few weeks ago won’t be able to pay for their mortgages. The banks will be lenient for a period of time, but I suspect in four months many properties will go on the market - a great time for real estate agents, and a great time for astute property investors. That along with even lower interest rates, and potential relaxing of loan-to-value ratio rules further, will mean a great time for investors cashed up with equity ready to pounce.

If this virus and closures around the country do continue, what I see is an even greater shortage of rentals in six to 12 months from now.

Many investors left the property game over the past one and a half years (because of so many legislation changes that were brought into the property market by the Government that is to the detriment of investors). If many home buyers can’t afford a mortgage and sell their properties they then will need a rental property to live in, which will mean even more of a shortage of rental properties in New Zealand.

This could again drive rent up which is already extremely high. Keeping this in mind, and with many older houses around New Zealand not insulated (and therefore not rentable), the Government might actually realise they need property investors to be their friends all of a sudden.

I also believe that the many new builds that will be completed over the next will become a major player in the rental market of New Zealand as well as first home buyers needing them.