Assetsoft - Blog #investors

New Zealand's Build-to-Rent Boom: A Golden Opportunity for Investors and Developers

Sun, 20 Apr 2025 23:21:26 -0500

Recent legislative reforms have made New Zealand's Build-to-Rent (BTR) sector one of the most attractive investment opportunities in the Asia-Pacific region. These policy shifts, addressing the nation's housing affordability and shortage crisis, create a ripe environment for investors, developers, and property management companies.

Facilitating Overseas Investment

The recently enacted Overseas Investment (Build-to-Rent and Similar Rental Developments) Amendment Act 2025 significantly streamlines the consent processes for overseas buyers interested in acquiring existing build-to-rent (BTR) developments with 20 or more units. This groundbreaking legislation not only enhances liquidity for developers but also ensures that properties remain dedicated to rental housing, offering long-term leases and professional management.

This reform provides a much-needed exit strategy for developers facing liquidity challenges. It enables assets to be efficiently transferred to international investors who are attracted to the stability and growth potential of New Zealand's real estate market.

Financial Incentives Driving Growth

Another critical legislative measure is the indefinite exemption of BTR developments from interest limitation rules, which took effect in March 2023. By allowing full interest cost deductions from taxable income, this exemption significantly enhances the financial viability and attractiveness of large-scale BTR projects, positioning New Zealand as a prime destination for real estate investments.

Balancing Tenant Rights and Rental Supply

Further strengthening the rental market, the Residential Tenancies Amendment Bill 2024 introduced flexible tenancy rules. These include the return of 'no cause' terminations, which allow landlords to end a tenancy without providing a reason, and adjusted notice periods, which give landlords more flexibility in managing their properties. New provisions, such as pet bonds and streamlined consent rules, remove key barriers that previously discouraged rental investment.

Why This Matters for Investors

The cumulative effect of these legislative changes signals a clear and supportive environment for domestic and international investors. Assetsoft sees these developments as pivotal, creating opportunities for property developers and investors to strategically enter and expand their presence in the flourishing New Zealand multi-family housing market.

Assetsoft, with its extensive expertise in property technology and management consulting, is ideally positioned to support investors navigating these new regulatory landscapes. We provide innovative technology solutions, streamlined property management processes, and strategic investment advice, ensuring our clients can make informed decisions and succeed in the dynamic Build-to-Rent market.

Seize the Opportunity

The time to engage with New Zealand's promising Build-to-Rent market is now. Assetsoft offers comprehensive solutions tailored to help you succeed in this dynamic market. Our solutions include innovative technology tools, streamlined property management processes, and strategic investment advice. Whether you are looking to invest, manage, or develop properties, we have the expertise to guide you. Seize the opportunity and make your mark in this growing sector.

Connect with our experts today to explore how Assetsoft can guide your successful entry and expansion in New Zealand's growing Build-to-Rent sector. We are here to support you every step of the way.

Get Started Now

Investment Management Trends Post Pandemic

Thu, 03 Jun 2021 08:00:00 -0500

COVID-19 marked a global change for all industries. With 2021 promising recovery, experts haven’t wasted time forecasting where real estate could go. Thankfully, most trends will be beneficial for companies and investors worldwide.

However, we must focus on one fact: technology makes up a considerable portion of these forecasts. Investor managers have understood the benefits of innovation: efficiency, accuracy, transparency, and convenience.

During the pandemic, these advantages were lifesavers. As the crisis subsides, they’ll quickly become the new standard. Working with a professional software implementation service is ideal for reaping all the benefits. Assetsoft also offers you everything you need for your investment management business, from accounting outsourcing to business process outsourcing.

Trends for different asset classes

Firstly, we’ll look at which asset types have experienced trend shifts during 2021. If you’re thinking about portfolio diversification, these markets are definitely worth a look.

That said, you'll probably be surprised to learn some of the upcoming asset trends. Considering which markets performed the worst during the pandemic, property managers won't expect multifamily and office real estate sectors to offer growth potential.

1. Office space slowly recovering

Investors are starting to revive their interest in office real estate. With vaccination rolling out, workers are beginning to come back to their offices.

Current developments, like IT recovery, are breeding hope for the sector to recover faster than expected at first. This trend could turn the tides for many real estate companies.

2. Multifamily assets gaining popularity

Despite its losses during the pandemic, the multifamily asset class has shown its resilience. One of the main reasons behind it is the technology behind it.

Virtual tours and other innovations have sprung interest in multifamily properties. Investors planning to diversify their portfolios will probably reconsider this market as a promising investment.

3. Debt as an asset class

Running debt has also experienced growing demand as an investment instrument. The investor community has realized the potential benefits of debt financing.

It’s akin to the previous trend toward real asset alternatives: oil, infrastructure, and gas. The debt market has shown opportunities for property ownership due to current valuations.

Technology taking over the market

As we mentioned, technology implementation is becoming a priority for most companies, and COVID-19 merely strengthened these needs. Today, investment managers have no reason to settle for traditional methodologies.

Process automation, chatbots, AI, and big data are some of the most important developments for the post-COVID world. Which technologies attract more investors within the real estate market?

Investors keep prioritizing effective PropTech implementation in real estate companies. Make sure you don’t fall behind and contact a professional service.

1. Attraction toward purely digital interactions

Today, investors are still hesitant about personally assessing an investment opportunity. That's why we've experienced fast growth in virtual tours and augmented reality.

With time, this trend might shift from being born out of health concerns to remain relevant for its convenience. That includes document storage and signing as well.

2. Automation is still gaining ground

Naturally, automation remains a substantial investment for any property manager. Nowadays, investors don't have the time to develop and stick to busy schedules due to human resources.

As such, even primary automation (chatbots and personalized listings, for instance) goes a long way in making specific investment opportunities more attractive.

3. Technology implementation remains a priority

Naturally, automation remains a substantial investment for any property manager. Nowadays, investors don't have the time to develop and stick to busy schedules due to human resources.

As such, even primary automation (chatbots and personalized listings, for instance) goes a long way in making specific investment opportunities more attractive.

4. Online services and convenience become crucial

Likewise, most people have gotten used to finding all the options and solutions they need from their phones. Finding investors will demand companies to focus on convenience via digital services.

Investor portals, intuitive websites and catalogs, and even mobile apps will significantly attract them to specific offers.

5. Self-servicing preference

In the end, all that convenience translates into empowering investors. These people will demand more information and solutions to take a primary role in creating and closing deals.

With today’s hectic landscape, there’s little interest in waiting days for a request to process. Management solutions, like Yardi, have driven the “new normal” in self-service functionality.

Management and accessibility

The final trends aren't entirely related to the real estate companies, but investors are spreading their focus to more aspects than traditional markets and plain ROI. They wish to be more involved in their investments, often learning more about the assets and needs.

That doesn’t only mean becoming interested in the investments themselves but also innovative opportunities. Primarily, investor managers desire to have instant access to actionable data about their current portfolio and options.

1. Capital isn't the sole focus

With current financial uncertainty and market risks, investors need to know more than potential profits and losses. We'll see a significant spike in requests for more information about every investment opportunity as they look to understand everything about their asset.

2. Fundraising breeding new opportunities

Fundraising has also gained considerable traction among investment groups. Putting opportunities out for investor pools makes it more affordable to access new investment chances. Today’s software allows investors to access these methods online.

3. Debt investment and compliance

As we mentioned, debt has become a primary interest for many investors. Though, these investment assets mean complicated considerations, like compliance and governance.

Offering these options is as important as educating investors about what they can expect and how to leverage them.

4. Comprehensive digital process management

Lastly, investors expect to have all the information and tools they need to evaluate and close their investments. These solutions must be digital and accessible to provide the required empowerment.

That means integrating complete systems to offer the functionality expected by a seasoned investor population. Investor portals and management suites will likely become invaluable for property managers.

How can real estate companies leverage these trends?

As usual, there’s little value in realizing upcoming trends if a company can’t take advantage of them. Since technology is the foundation for many developments, we must start on that front. The first step is to assess your current systems and what you’re missing.

Even the trends that aren’t directly related to technology benefit from finding the best solutions for your company. As you’ll see, our tips revolve around digital adoption and integration.

1. Professional technology implementation

Firstly, any company needs to consider how modern its systems are. Legacy software becomes obsolete faster than ever, and with rapid adoption being today’s norm, you can’t fall behind.

That’s because finding an expert technology implementation solution can prove to be an outstanding investment. The right software will provide investors with all the features they need to feel confident in their assets.

2. Big data analysis

If you wish to check promising markets to see if they’re still profitable, data analysis is the best way to do it. Real estate firms generate prominent big data volumes, and the right AI intelligence & data forecasting solution will turn that into a crucial competitive edge.

Likewise, integrating efficient software for data gathering and management streamlines all your data analysis efforts. Qlik is among the best systems for this task.

3. Adapting to relevant trends outside of investment management

Finally, don’t neglect other developments and trends because they’re not directly related to investment management. For instance, the ERP software market promised considerable growth in the upcoming years before COVID-19. The crisis boosted that growth.

ERP software will likely become the standard in the real estate sector, driving investor trust toward companies using this software. We can find countless other trends that can indirectly affect investment management, and the right strategy must keep them in mind. Let us help you with your investment management accounting needs.

The Assetsoft team understands your accounting outsourcing needs. We can help you free up time. Talk to an outsourcing company that brings to the table what you need. Give us a call today!

How Is The Growth Of Real Estate Similar To Inflation? How Do You Calculate It?

Mon, 03 May 2021 10:20:11 -0500

Investment assets can be intimidating, especially with long-term commitments. Inflation can be difficult to assess, and it can reduce a promising option to financial losses. If the inflation rate outgrows your assets’ value, your net worth takes a hit.

Commercial real estate has always been recommended for investors looking to outpace inflation. For many experts, real estate is a fantastic opportunity regardless of interest rates. However, the reason goes somewhat beyond that belief.

Today, we’ll find out why real estate is so effective against inflation. If you’re interested in investing in this market, you might want to hire professional financial services to evaluate your options.

Let’s talk about inflation hedge

Real estate is essentially an inflation hedge. That means an investment asset that can protect investors against losing their purchasing power. Inflation hedges are assets whose value remains or increases over time regardless of inflation.

Gold is another outstanding inflation hedge, but real estate offers unique advantages. Many investors also leverage stocks for this goal, yet this strategy can be counterproductive depending on the market.

Additionally, investors can use inflation hedging for more than protecting their capital. Operational costs can benefit from this method.

Why do companies care?

Primarily, companies can protect their investments' value with inflation hedging. Stable assets enable companies to increase value in the long term. Properties' market value and rental income are famous for rising during inflation.

However, companies' operational expenses are likely to increase with inflationary periods. Hedging offsets this obstacle. Inflation causes companies to raise their prices or cut costs to maintain their margins. Inflation hedging reduces this need.

How effective is real estate as an inflation hedge?

Many studies have measured why real estate can be an efficient investment strategy against inflation. Its appreciation and stable demand despite financial complications makes it a good bet for many investors.

We need to also consider different property types and their performance. The retail property seems to be the most effective inflation hedge, and industrial and apartment markets come in second place. Unfortunately, office real estate's property income falls short, but property values remain promising.

Considering interest rates

Inflation isn't the only factor we need to measure, as interest rates play a close role. We need to consider income growth, primarily compared to interest rates. Income usually doesn't grow as much as inflation.

Additionally, adding interest rate increases, cap rates will likely remain high. If that’s the case, real estate asset appreciation will become a challenge. The problem is that yield-only returns lose value with inflation if investors only break even.

How can we calculate real estate’s efficiency as an inflation hedge?

Real estate offers unique advantages as an inflation hedge. It allows investors to gain a new income stream from their inflation hedge, which isn’t possible with gold and similar assets. Even if this income loses value, it’s merely an addition to your property’s worth.

Additionally, the real estate market can be easier to access for individual investors. This is unlike more extensive stocks, which are usually restricted to Wall Street firms and hedge funds.

Leveraging low-interest rates

Real estate performs more proficient for inflation hedging when interest rates are low—the lower, the better. However, that doesn't mean that real estate's hedging suffers when interest rates aren't expected, as it's rare for cap rates to decrease.

Interestingly, that makes real estate one of the best investments amid COVID-19 since cap rates are at an all-time low. Economic growth also boosts the market’s effectiveness for hedging.

Significant developments

We also have to consider government debt and how the government tackles it. Most experts think about increasing taxes or reducing social benefits. However, the latter is considerably harmful given the current pandemic.

However, reducing interest rates is the ideal approach for real estate inflation hedging when combating government debt. It naturally causes inflation to rise to attempt to increment nominal GDP. If that's the case, properties become the best hedging asset.

Real estate’s adaptation to inflation: Analyzing the dynamic

But why does this relationship exist? How can real estate offset inflation, and what's the difference between its interaction with the market and other assets? Inflation increases prices in the market, and that means increasing production costs as well.

Many sectors feel inflation’s brunt, but real estate often comes out unscratched. Additionally, real estate is easier for investors than other markets. They can work with REITs, crowdfunding platforms, private equities, and mutual funds.

Property appreciation

Property prices increase with inflation. Construction materials increase, boosting the price for new real estate developments, and older properties usually follow this trend.

This appreciation allows investors to considerably curb inflation, enabling them to sell their investments for a higher price. Interestingly, US inflation has been significantly lower than appreciation, protecting investors' net worth from inflation.

Borrowing costs

Additionally, price hikes make loaning a terrible investment. People can repay loans quickly, but the amounts will be worth much less. Therefore, loan terms become noticeably less favorable when inflation is an issue.

Interest rates for loans usually increase to offset this value decrease, looking to cover losses. Buyers and developers in the real estate market feel the effect of this development. People typically rely on loans for investing in properties, and most construction firms require loans to carry their projects.

Rental rates

Lacking purchasing power, people will gravitate toward renting since it’s more affordable. That increases rental rates, and this makes rental properties a fantastic investment during inflation.

Overall, rental properties generate better returns as inflation grows. The inability to purchase properties enables property managers to charge more for their rent.

Does real estate benefit from inflation?

It would be inaccurate to say that any market or industry benefits from inflation. Even the wealthiest investors need to cope with hiking costs. That's why real estate as an inflation hedge - it helps you curb this damage.

Nevertheless, real estate is the best investment for many companies and individual investors when inflation becomes an issue. It offers all the features and advantages necessary to overcome it.

Streamline your Real Estate Operations

Assetsoft helps you streamline your real estate business for more productivity. We help you optimize your work processes and choose the right ERP. Know how using the right technology can benefit you, from using robotic process automation to back-office accounting. Contact us today!

Investment Management - How Do You Decide Who Gets What Much Money From Investing In Real Estate?

Thu, 29 Apr 2021 12:01:10 -0500

Working with joint investments can be complicated. It would help if you managed expenses and capital ratios, and that's already complex. However, it can also be somewhat uncomfortable. Splitting dividends from returns can be a social challenge.

Investors need to care for their money. Many live entirely off their capital, and they tend to be quite zealous with their returns. Reaching an agreement and committing to it is a crucial step for a healthy financial relationship.

If you’re having issues deciding shares, consider hiring our project management services team for better transparency in your shares. The Assetsoft team can help you choose the right ERP for your business, from popular options like Yardi, MRI and UiPath. If you’re new to the process, Assetsoft’s Yardi consulting experts can help guide you through the process. We can also help you explore newer ways to improve job productivity.

Why would you share real estate investments?

Joint investments are considerably similar to a joint-stock company, so roughly the same principles apply. Partnering with investors allows companies to increase their financial capabilities. It helps them cover more ground regarding possible investments.

Small companies benefit considerably from sharing investments, primarily because they can increase their portfolios beyond their current capacity. However, the benefits extend to large firms as well. From minimizing risks to reaching more markets, the reasons are plentiful.

More possibilities

The main hurdle for many companies planning to invest in new assets is financial capacity. That means having enough capital to invest in new properties. Adding partners to the deal increases a company’s possibility, boosting the available monetary pool.

However, it's also vital to consider how much companies are willing to invest. Larger firms with enough capital might still hesitate to invest too much. As a simple example, it's easier to commit to a $1 million property if the investment splits into several parts than taking the entire investment alone.

Risk management

Similarly, joint ventures also reduce the risk every investor runs. It’s easier for people to risk $200 with five other investors than risking $1,000 by themselves. This approach limits shareholders’ liability solely to their shares.

Additionally, shareholders can sell their shares if they feel the investment is becoming too dangerous. Willing investors can absorb this risk for better potential returns, continuing operations and guaranteeing investment liquidity.

Faster financial growth

Finally, companies can improve their scalability sharing investments because it allows different investors to replace previous ones. This liquidity insurance enables firms to guarantee operations regardless of future challenges.

We also have to consider portfolio expansion and its role in a company's development. Entering more markets improves any property manager's reach. From new installations to increase their customer base, joint investments improve the operational scale.

Dividing equity between partners: The fundamentals

Companies can crumble if they fail to distribute equity effectively between partners. Financial experts agree that clarifying shares is a critical step. We must consider different roles within the investment partnership as well.

Not all ventures start with equal capital from all parties. Typically, someone comes with the idea, and others provide funding for it. Anyone can contribute to the decision-making process and management, but many investors prefer to remain unconcerned and focus solely on their returns.

While that can be efficient in many situations, it’s the source of most disputes regarding dividends.

How can you manage these scenarios?

Consider investors’ involvement

The first vital aspect is how everyone is involved in the investment. It consists of multiple variables: how much money they’ve provided, their interest in management and decision-making, and their reliability.

However, those tasked with managing the investment should enjoy special considerations. Their effort is considerably more significant than investors’, and they’re the ones who will solve any problems that could arise during the venture.

Their trust is still valuable

While founders and "deal makers" are vital for the project, investors are still integral to making it a reality. They might not receive a majority of the returns, but neglecting them can disintegrate the opportunity.

We must remember that investors are placing their trust in the company, and many will likely take loans for the project. That’s why discussing percentages is always uncomfortable, so working with formulas and mechanisms can increase transparency.

How can you split real estate deals?

After covering the essential aspects of an investment partnership, you need to find the correct approach. That means creating a methodology to distribute returns between partners, and you need to consider roles, participation, and other aspects.

Naturally, not everyone receives identical amounts. That doesn't mean that those investing their money should reap most of the profits. Investing $1,000 and not worrying about management won't entitle you to more money than someone who invested $500 but takes care of the entire operation.

What should you keep in mind when splitting shares?

The deal maker

The “deal maker” is the investor who had the idea and is responsible for executing the project. They should consider keeping a significant share because they enabled the investment.

Their share can range between 20% and 30%, depending on how much capital they're investing and their experience. Reaching an agreement on how much this role should make from the investment is usually the most tedious step.

Financial investors

Those who are solely providing funding for the investment come after the deal maker. The most common approach is to divide the remaining percentage according to their participation.

For instance, providing 30% of the capital usually makes 30% of said percentage. However, we also need to adjust these shares depending on every investor's involvement in the deal.

Consider partners’ participation

It’s also common to assign additional responsibilities to willing investors. For instance, someone might fund the project while offering contacts and other advantages. These could be entitled to a higher portion than financial-only peers.

Once bought, the property might also need more work. In these cases, investors might provide extra funding or take care of these arrangements. All those variables are vital when deciding their shares.

There’s not a unique approach

Different companies and investors will prefer different strategies for splitting dividends. For instance, the deal maker might not receive a fixed percentage from the returns. They might prefer an initial fee and a lower percentage from the profits.

Additionally, someone will oversee property renovations, work with contractors, and take care of construction management.

Want to make your work easier? Talk to the Assetsoft team today to know about our lease abstraction, CAM reconciliation and support services.

The Complete Guide To Connecting Investors To Real Estate Opportunities

Wed, 28 Apr 2021 10:59:38 -0500

Investors are among the best friends any real estate agent and company can make. They often provide most of the financial backing for any firm, and they can be a crucial ally for any business planning to expand its operations.

However, finding them is a challenge for many—particularly smaller companies with less reach. Luckily, the internet offers many channels where you can find the investors you need for any project.

What do real estate agents need to look at while searching?

The first step to finding a good investor is understanding what you can offer. Investors need to protect their interests before any company's promises. That means creating an enticing offer that covers the fundamentals of a good deal.

While you need to think about many variables, all investors should follow similar plans and strategies.

Investors’ valuation approach

Investors evaluate properties differently. Some prefer to buy shares, and others prefer to loan money since it's safer. Many investors also choose to sell properties instead of renting them. If you don't understand how they decide on investments, you can't provide a good offer.

Demanded markets

Some markets attract more investors than others. You'll also find different investor types and interests depending on the market—asses which ones offer the best opportunities for you and target those.

Assess investor experience

First-time investors come with many disadvantages. They could be more hesitant to provide enough financing or more prone to panic. Ideally, you want to provide as little emotional support as possible.

How can you reach out to investors?

Once you have a reasonable offer, you need to find the right investors. Anyone can post an advert on social media or learn about networking opportunities. The best advantage is to take a holistic approach that tackles multiple channels where investors hang out.

Additionally, searching for investors isn't the only way to connect with them. You also need to assess what you can do to attract them instead of always looking for them.

1. Networking events

Many companies and associations host entire events dedicated solely to connecting investors and opportunities. They often host educational presentations and other amenities to improve their offerings.

2. Seminars/conferences

Investment conferences aren’t always tailored to networking, but they’re an outstanding opportunity nonetheless. Most people attending these events are interested in improving their income, and they’ll appreciate the chance if given.

3. Social media

Everyone knows social media marketing’s efficiency. You can post and advertise your best investment opportunities, which will reach thousands of people in a moment.

4. Education

You can host conferences and workshops as well. Providing valuable knowledge to your potential investors can strengthen their loyalty to your projects, and it’ll allow you to market your offer simultaneously.

5. Local advertisement

If you already own property within neighborhoods and communities, you can turn it into a marketing tool. Opening up your house for investors lets you guide them toward other offers.

6. Hosting charity events

Charity shouldn't be a marketing scheme, but you can host an event for something you care about. That will attract like-minded people with whom you can form meaningful relationships.

7. Event sponsorships

Finally, consider hosting small businesses’ events. You can help them grow while still having access to the lead list and attendants.

Get inside an investor's mind

After creating a solid marketing strategy for your project, you want to understand how they think. While every investor has a different methodology, you can cover the fundamentals to create a solid first impression.

Anyone who’s tried to buy a property has likely interacted with unpleasant agents and companies. If you understand their perspective, you can turn your company and offers into something they can’t pass up.

Experience

Working with inexperienced people can be uncomfortable and inefficient. However, trusting your money to them can be a significant mistake. Remember to showcase your experience to gain investors' trust.

Complete services

You want to provide more than merely showing properties and closing deals. You need to adapt to your prospective investors: what type of deals they like, off-market opportunities, and anything that makes you better than competitors.

Knowledge need

You also want to answer your investors' questions. Some wish to find better or cheaper properties, and you should always answer any request.

Good negotiation

Every investor wants the best deal possible. It's your responsibility not only to find it but to create it as well. If you find the ideal property, you must secure it according to your investors' needs.

Transparency

Finally, no investor wants to work with someone that keeps information for themselves or doesn’t keep them posted on every development. Communication is vital, and your investor must stay on top of everything.

Where can you find investors?

The last step after developing a good approach and improving your image, you need to learn where you can find better investors. Many companies conform with reaching general audiences: trying to cover as much ground as possible.

However, the ideal approach is to look for better and more experienced investors with time. These channels will help you reach out to people that will offer more commitment for your projects.

Dedicated websites

You can find sites dedicated solely to connecting investors and deals. You can use them as social media sites: creating groups, contacting investors, and communicating effectively with them.

General websites

Other websites aren’t focused solely on investment opportunities, but they can provide excellent leverage for your company. For instance, Craigslist lets you post your offers and attract investors, and LinkedIn has some features that can help you find local investors.

Investment clubs

Investment clubs provide outstanding networking opportunities, and they’re typically pretty exclusive. These clubs are often the optimal place to find willing, committed, and experienced investors for your projects.

Look for chances everywhere

Don’t rely solely on the internet to find your investors. You can find unexpected and fantastic opportunities where you might least expect it. Auctions, local posters, and other spaces can connect you with investors, so make sure you think outside the box.

About Assetsoft’s Services for the Real Estate Industry

At Assetsoft, our project management services can help you find the financing you need to carry out your developments. Avoid project delays and scope changes midway by accomplishing necessary business objectives on time.

We can also help you streamline your business process to ensure better team collaboration. No matter what ERP you use, from Yardi to MRI to UiPath, we can help you optimize your business process to get better productivity. We can also help you choose the right ERP for your business, depending on your business requirements.