By Cam Harper*
Owning property has long been one of New Zealand’s most familiar ways to build wealth. Many people understand the core appeal of land and housing. It feels tangible, property can generate income, and for decades it has played a central role in how Kiwis think about investment and funding retirement.
But the reality of owning an investment property has changed. Higher rates, insurance, maintenance, tenancy obligations, bank lending criteria, and changing market conditions all add cost and complexity.
An April article on interest.co.nz referenced a recent survey by Tony Alexander on how mum and dad landlords feel about traditional property investing and the overall sentiment has shifted.
For some investors, direct ownership still makes sense. For others, the appeal of property remains, but the work involved in buying and managing property is less attractive than it once was. Many investors tell us they once had large investment portfolios, but this model became less sustainable during their retirement.
That is where property-backed lending offers another way in. It gives investors the ability to earn income from property, without needing to buy the property, manage tenants, organise repairs, or carry the day-to-day obligations of being a landlord.
The peer-to-peer investment model, where investors invest alongside others into property-backed loans, can provide a lower entry point to property investing without the large upfront cost, maintenance or tenant management that usually come with owning property.
The process and type of loans available differ across peer-to-peer providers, so it is important to do thorough research before making an investment decision. What checks and balances are in place to ensure you are investing in a quality loan? What experience does the company have?
No investment is without risk, and investors should always consider their own circumstances, timeframe, and risk appetite before making a decision. But for those who see the value in property, property-backed lending can provide a way to invest without taking on the direct responsibilities of ownership.
Choosing the right investment partner
Southern Cross Partners has been providing first-mortgage secured investments for nearly three decades, through property cycles, interest rate shifts, tighter credit conditions, and wider economic uncertainty. That experience has shaped a conservative lending approach, where loans are assessed by people who understand both lending and property risk.
At Southern Cross Partners, we pool investor funds to finance first mortgage loans secured over New Zealand property. Investors earn income from the interest paid by the borrower, giving them a way to benefit from property investment without the large upfront cost, maintenance or tenant management that usually come with owning property.
Unlike companies that pool properties together to invest in as a block, Southern Cross Partners believes the choice should remain with the investor. We offer individual loans secured against specific properties, giving investors the ability to choose what fits their own circumstances, timeframe, and risk appetite.
Learn more about investing with us here.
Sourcing quality investment opportunities
A key factor when selecting the right first-mortgage investment partner is ensuring the investments on offer come from reputable sources and that loans have been thoroughly vetted through a prescribed approval process.
Southern Cross Partners sources loans from registered financial advisers across New Zealand, as well as from direct customers.
With an emphasis on quality rather than quantity, we always lend our own funds first, before uploading the loan to our online Investor Portal for investors to select.
This sets us apart from similar companies and provides certainty of funding for the borrower, along with immediate investment opportunities for investors.
For investors who like the familiarity of property, but do not want the obligations of becoming a landlord, Southern Cross Partners is worth a closer look.
For more details visit www.southerncrosspartners.co.nz
Disclaimer: All investment opportunities are subject to change and availability. Southern Cross Partners Ltd is licensed to provide peer-to-peer lending services under the Financial Markets Conduct Act 2013. This article is general in nature only and does not take into account any person’s objectives, financial situation or needs. We recommend speaking with a financial adviser before making any investment decision.
About Cam Harper: As Managing Partner of Southern Cross Partners, Cam Harper leads both the lending and investing sides of the business. He is passionate about helping New Zealanders understand secured investment opportunities and the role property-backed lending can play in a wider investment portfolio.