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NZ Property Investor

NZ Property Investor March 2021

The New Zealand Property investor magazine provides readers with information you can use to successfully invest in residential property. You can learn from the experts, read the stories of your fellow investors and keep up to date with the latest house prices and rental statistics.

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Country:
New Zealand
Language:
English
Publisher:
NZ Property Investor Magazine Ltd
Frequency:
Monthly
$8.20(Incl. tax)
$80.88(Incl. tax)
12 Issues

in this issue

5 min
good things take time

Professional photographers James and Mel Jubb have had a passion for property for years. They specialise in house photography, and be it for real estate advertising or design awards, they understand the power of a beautiful home. It was this passion that led them to buy, renovate and sell a home in the Invercargill suburb of Strathern; a process that, due to lockdown, was much slower than they originally planned. The 1913 home was dated and unattractive, and the pair knew that the interior would need a major makeover. There was a weird back section to the house that included a shower, toilet and laundry; accessed via an ugly kitchen, which needed to be removed so the pair could subdivide, which was one of factors that went into their decision to purchase…

2 min
damaging with intent

The definition of “intentional damage” is notoriously slippery. But adjudicator J Robertshawe found in the favour of a landlord who claimed that her tenants had caused damage to the property beyond the usual “wear and tear”. Mary Fisher rented out the property in Brooklyn, Wellington to Vineet Mewara, Ajay Saini, Rajbir Singh, Gurpreet Singh, Karampreet Singh and Saajan Narula in March 2018. However, she ended the tenancy on January 31, 2020 through a 90-day notice after she became concerned about rent arrears, the number of people living at the property, and the state of the property when she did her inspections. After the tenancy ended, Fisher applied for rent arrears, substantial compensation for cleaning costs and damages, exemplary damages, refund of the bond, and reimbursement of the filing fee. The tenants defended the…

1 min
statistics

NATIONAL RENTAL PRICE MOVEMENT This map represents change in the average rental price between the months of January 2020 and January 2021, based on figures from the Ministry of Business, Innovation & Employment. RENTAL SNAPSHOT Median house rents of the dominant dwelling type for the area EXPLANATION OF STATISTICAL TERMS No. of Properties: Total number of residential properties No. of Bonds: Total number of bonds lodged in last three months Median Rent: Weekly rent based on the bonds lodged in the latest three months Rent Quartile Range: Inter-quartile range of weekly rent based on the bonds lodged in the latest three months Median Value: The median value of properties in the group based on estimating the current market value of each property using our E-Valuer at the end of the latest month Gross Yield: Annualised median rent as a percentage…

3 min
corelogic lower hutt kelvin davidson, senior property economist, corelogic

THE DATA Rental data is sourced from the Ministry of Business, Innovation and Employment based on rental bonds lodged. This data is supplied to us grouped into geographic areas based on statistical area units used by Statistics NZ for the census and as a result do not always match well with common usage suburb names. The rental data for each area is matched to property price information from our database to determine property prices and therefore yield. The yield is calculated as the annualised rental income divided by the median property value calculated using our E-Valuer. MARKET COMPOSITION Lower Hutt’s rental market is dominated by houses, as tends to be the case in most parts of the country. Of the 359 properties recently on the rental market, 279 (or 78%) have been houses, with…

2 min
property managers: time to regulate

Of particular concern is the removal of the 90-day notice. What will be interesting to watch over the coming months is how this plays out and how the Tenancy Tribunal rules on the first cases it hears. But now the Residential Tenancies Act (RTA) changes are in place it is time for the Government to reform the property management sector. According to the Real Estate Institute there are 184,000 rentals under the care of property managers. Our recent personal experiences with a firm which claims to be very precise about how it manages rentals is anything but. The service has been unprofessional and the conduct of the staff has been appalling at times. There are plenty of good property managers out there but often we hear stories of unprofessional managers. Indeed, here at the magazine…

1 min
what’s it worth to you?

What should you pay for that property you’ve got your eye on? You won’t find the answer by listening to what other people think it’s worth, says Ramin Tavakoli. He believes you need to start by thinking about your own goals, and then what the property is worth to you. “In March I went to an auction and I didn’t want to lose the property because I knew it was a great site for subdivision. For someone planning to buy it and rent it out, it was worth $550,000 max. But for me it was worth more than that. I paid $622,000, and people said I paid too much. Then in May, after lockdown, the agent called me and offered me $700,000, and now it’s worth over $1 million. But when…