Olly Newland is probably the pinnacle example of residential property investment in New Zealand.

Holding an enormous portfolio of property, Olly has been investing in Auckland's residential market since the middle of last century. I met him many years ago and one thing I can guarantee is that Olly is a good landlord. He's one of those sensible blokes who realises that there's more to money in being a landlord and has good, clean properties at fair prices.

I have no idea what he's worth these days, but it would be in the hundreds of millions.

You'd think a bloke like Olly, whose net worth increases by tens of millions in a year that property prices go up 10%, would be a huge fan of the escalating property values in Auckland.

Not so.

Olly has laid the cards on the table in a frank interview that I cannot disagree with any part of:  http://www.stuff.co.nz/business/80948845/ghetto-warning-as-property-investors-take-lions-share-of-cheap-houses

When Olly warns of areas becoming ghettos, he is absolutely correct, and it's already happening. You won't be aware of where they are if you stick to main roads and rich-fullas areas, but if you drive around parts of Mangere, Glen Innes and many other suburbs, you'll see it happening before your eyes.

How about Manurewa? Property prices up 33%, yes an entire third, in the space of twelve months?

Who do you think is buying those properties? First home buyers or amateur property investors desperate to jump on the bandwagon of investment property ownership?

Hint: it's the latter.

 

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