The story speaks to Classic Capital providing indirect property investment options, a sound alternative to those who have historically participated directly as landlords but no longer want the red tape.
Backed by Classic Group, founder of Classic Builders over 25 years ago, Classic Capital has launched its Land and Build fund to increase the pace and future opportunities to build more homes for Kiwis.
“Kiwis have jumped into share investing with gusto” and property funds are changing as providers look to target cashed-up landlords who have sold or are thinking about it.
One large building group that has a $300 million partnership with the NZ Super Fund has launched a new capital-raising investment fund to build and sell houses directly to homeowners.
It says the fund could appeal to disgruntled mum and dad landlords who want to sell their rental properties but stay in the property space as “we envision in the next 10 to 15 years there will be a lot more corporate landlords”.
The Financial Markets Authority said easy-to-use online investing platforms, a buoyant market, spare time and cash as a result of pandemic lockdowns meant “Kiwis had jumped into share investing with gusto”.
But many newer investors had never experienced a market event where share prices had dropped significantly and during a market downturn, people did not want to be in the position of having to sell investments at a loss.
Classic Capital’s corporate investor manager Raymond Gatfield said the new capital raising investment fund would allow it to build significantly more homes faster.