Business & Finance
NZ Property Investor

NZ Property Investor

July 2020

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.

New Zealand
NZ Property Investor Magazine Ltd
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12 Issues

in this issue

2 min.
celebrating 200

It’s always good to recognise reaching a significant milestone, especially in troubled times such as these. And, as you may have noticed from our cover, we have a milestone of our own to celebrate this month: this issue is the 200th issue of NZ Property Investor. We feel that publishing 200 magazines is an achievement worth acknowledging in itself. But this milestone also represents a chance to reflect on property investment in New Zealand and how that has fared, and changed, over the years. In order to do that, I took a trip down memory lane and read through our back catalogue. It was an enlightening experience as it showed just how much some things have changed in the world of property, while others remain unchanged. The first issue of NZ Property Investor…

1 min.
freeze on new-to-bank lending

Advisers say that not only are the big four banks sticking to their internal LVR limits, but banks across the board have tightened their criteria for new borrowers, putting a strain on home buyers in the wake of Covid-19. Westpac was, apparently, the last big bank to stop taking on new borrowers over 80%, changing its strategy last week. That means, in most cases, customers are stuck with their existing bank, with no option to shop around. Generally, lenders are shying away from higher-LVR borrowing and instead focusing on existing customers and processing hardship and deferral requests, advisers report. NZFSG’s Bruce Patten says no-one is doing over 80% new-to-bank at the moment, but it will open up again. “Once the banks are comfortable with the housing market they will be all over them…

1 min.
think smaller for higher yields

But that comes with a qualifier: smaller dwellings do – potentially - carry more risk, too. CoreLogic senior property economist Kelvin Davidson says their research suggests that experienced and long-term investors haven’t altered their plans too much yet and some intend to look at buying opportunities. “But the likely reduction in property value growth (capital gains) means a lot of the focus in assessing potential investment purchases will need to be on the rental yields.” On that point, CoreLogic’s data shows that apartments generally deliver higher yields than houses and require less capital up front as well. “The Covid-19 hit to the foreign student market may put question marks over the demand to occupy apartments in central city areas,” he says. “But a gross yield of 5% (assuming occupied) for an apartment in Wellington’s Wadestown/Thorndon,…

1 min.
nz property investor events calendar

Your monthly round up of property investment related events around the country. THE RONOVATIONZ BREAKFAST: TO BUY NOW OR TO BUY LATER? Saturday, July 11 and Sunday, July 12, 2020. Join Ron and the team for a light complimentary breakfast and find out if now is the time to buy. 8:45 to 10:45am. Seating is limited. https://ronovationz.co.nz/seminars/ ONLINE PROPERTY INVESTMENT AND EDUCATION SEMINAR Available on demand. Hosted by Gilligan Rowe & Associates and includes Covid-19 property market update. Free to attend. To register: https://www.nzportal.co.nz/pie/register.aspx or for more information please visit https://www.gra.co.nz/property-investment-seminars or phone 09 522 7955. PROPERTY SCHOOL 7-MODULE ONLINE COURSE A vailable on demand. Hosted by Gilligan Rowe and Associates. Includes over 12 hours of videos, articles and quizzes. Cost is just $495. For more information and to register: https://www.gra.co.nz/events/gra-property-schoolor phone 09…

1 min.
landlords.co.nz  top five – june

1 Tenancy termination ban lifted The end is nigh for emergency tenancy measures introduced during the Covid-19 lockdown with the Government today confirming the measures won’t be extended. 2 COMMENT: Will level one mean level one for residential landlords? Cabinet is considering a move to alert level one tomorrow, so does that mean it will all be back to normal for New Zealand’s 290,000 rental property owners and managers, Tenancies War spokesman Mike Butler asks. 3 Navigating level two: what landlords need to know With around 95% of businesses now back at work and children returning to schools today, New Zealand is now fully ensconced in alert level two. So what does that mean for residential landlords? 4 Wind up emergency tenancy provisions now - REINZ Emergency tenancy provisions introduced because of Covid-19…

1 min.
ban lifted

On 24 March, the Government announced emergency legislative measures to protect tenants as New Zealand moved towards alert level four lockdown. They included a three-month ban on terminating tenancies, except for a limited set of reasons, during the lockdown period. With the three-month period drawing to a close, there were growing concerns the ban might be extended. However, Associate Housing Minister Kris Faafoi recently announced that it is no longer justified to extend restrictions on terminations after June 25 and the usual termination rules will apply from June 26, 2020. Faafoi says there are still challenging times ahead for landlords and tenants as a result of the economic impacts of Covid-19 which are still unfolding. “We know it is likely to affect the ability of some tenants to meet their rental obligations, with flow-on financial…