category_outlined / Business & Finance
NZ Property Investor
September 2019The 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.
IN THIS ISSUE
opportunity speaks
It may have been made famous in a US presidential campaign several decades ago, but the catchphrase “It’s the economy, stupid” is as relevant today – and here in New Zealand – as it was back in 1992. And the focus of this month’s commentary serves only to prove it. Since the Reserve Bank stunned the country, early in August, with its decision to slash 50 basis points from the OCR to take it to a historic low of 1.0%, there’s been no escaping talk of the economy. Then, on top of that, recessionary fears have now well and truly taken root. This has shifted the focus from the ups and downs of the property market, although some believe the OCR cut, along with any further ones, could reignite house price inflation.…
nz property investor
NZ PROPERTY INVESTOR MAGAZINE PUBLISHER Philip Macalister E Philip@propertyinvestor.co.nz EDITOR Miriam Bell E miriam@tarawera.co.nz ART DIRECTOR Sally Fullam E sally@propertyinvestor.co.nz PRODUCTION EDITOR Joanna Mathers E joanna.mathers@tarawera.co.nz ASSOCIATE EDITOR Joanna Jefferies E joanna@propertyinvestor.co.nz SUB-EDITOR Dawn Adams DESIGNER Amy Bennie ACCOUNT MANAGER Lisa Wise T 0800 345675 M 027 4202 069 F 07 3491920 E lisa@tarawera.co.nz CONTRIBUTORS Peter Ambrose, John Bolton, Nick Gentle, Matthew Gilligan, Mark Honeybone, Brendan Lodge, Andrew King, Peter Norris, Bernard Parker, Ben Pauly, Kris Pedersen, Mason Reed, Rene Swindley, Jennifer Sykes, Aaron Tunstall, Milton Weir, Mark Withers.…
retrofitting aid expanded
Auckland Council’s “Retrofit Your Home” programme provides property owners with a loan of up to $5,000, repaid through their rates bill over nine years. Until last month, the programme covered insulation, clean heating, fireplace removal, bathroom or kitchen mechanical extraction, water tank installation and water efficient devices. But the Council’s Environment and Community Committee has now voted to expand the programme to include solar energy, energy storage and energy efficiency interventions. Auckland Mayor Phil Goff says the new interventions are focused on achieving energy efficiency and energy resilience. “We have approved eight new interventions to the programme including options for solar panels, solar and heat pump water heating, double-layered curtains and LED lighting. “Every Aucklander deserves a warm dry home and the immediate benefits of the programme include energy savings and the health benefits associated…
call for servicing test rethink
Leading advisers say banks continue to test customers’ borrowing abilities at rates of close to 8%, despite the central bank rate falling by 0.75% since May. They believe lenders should adapt to the new environment and test borrowers at a more reasonable rate of interest. Pope & Co Mortgages director Craig Pope says the “magnitude” of the Reserve Bank OCR cut could lead to a rethink from the banks. “I think the banks will start to look at that and ask ‘is it fair?’ Given the OCR has dropped, I’d think that would be high on the radar for banks.” Pope says some banks had begun to make subtle changes on servicing calculators, but there were no updates on the servicing test rate. According to the Mortgage Supply Company’s David Windler, some banks use the…
developing returns
Waxxproperty.com taps into a niche in the market to purchase blocks of units/flats being sold on one title and then individually unit/strata titling each unit/flat so that each unit can be sold individually for profit. Founder Sam O’Connor says an example of how this works would be if a block of five two-bedroom units on one title is purchased for $1 million. “Once the units are then individually titled, each unit is valued and sold individually for $300,000 – which is a total of $1.5 million. This creates a gross profit of $500,000. The company offers investors the chance to become an equity partner in such development projects which have high return potential, he says. “There are strong security and investment structures backed by tangible assets, while there’s zero bank debt and no personal…
nz property investor events calendar
SEPTEMBER PROPERTY INVESTMENT & EDUCATION SEMINAR Thursday, September 6, 6:45pm - Level 6, 135 Broadway, Newmarket, Auckland. Hosted by Gilligan Rowe & Associates. Free to attend. For more information and to register: https://www.gra.co.nz/property-investment-seminars RENTING AND YOU SEMINARS Tuesday, September 17, Palmerston North; Wednesday, September 18, New Plymouth, 7pm. Seminars are free but you must register to attend, one registration per person: https://www.tenancy.govt.nz/about-tenancy-services/events/renting-and-you-seminar VIP SALES NIGHT Tuesday, September 24, 6.30-8pm, 77a Ponsonby Road, Auckland. Hosted by Property Ventures Real Estate Limited. Free to attend but limited seats (20 only) so you must register to attend. Book at vipsales@propertyventures.co.nz UNLEASH THE POWER OF PROPERTY Sunday, October 13, 2019, 8:30am-4pm, Prefab Hall, Wellington. Tickets $49 (lunch included) http://wellingtonproperty.eventbrite.co.nz THE AUCKLAND PROPERTY WORKSHOP Saturday, September 14, Sunday, September 15, 9am- 4pm, Ellerslie Event Centre. An intensive two-day hands-on workshop. For more information and…
