NZ Property Investor

all-time high for investors

The market share of property purchased by investors in January and February was up to a record-breaking 29% in 2021, new CoreLogic figures reveal. Senior property economist Kelvin Davidson says that this represents the highest percentage since CoreLogic records began, in 2005. “The last peak we saw similar to this was in 2016, when the market share was 28%,” he says. He believes that this lift in investor interest is due to many rookies entering the market when it became clear that their bank deposits were unlikely to achieve anything like the gains found in residential property. “There has been a very strong incentive for people to move their money out of fixed-term deposits and into the housing market. “The increase in LVRs is likely to affect these new investors the most: as they leave…

privacy probe launched after ‘blacklist’ concerns

Privacy commissioner John Edwards wants to hear from tenants if they think their landlord or property manager has asked for more personal information than warranted under the Privacy Act, and if they have ever been put on a blacklist. Property Investors Federation president Andrew King says the Privacy Commission’s probe is reasonable. But he believes it could wrongfully fuel a public perception that the practices are widespread across the whole sector. “A perception is often worse than the reality,” he says. “Tenants who haven’t had a problem with their landlord or property manager won’t speak up. It will be only those who have grievances and that gives the impression that all landlords are demanding too much private information when we don’t believe they are.” Edwards says that his office has been made aware that…

fixed-term troubles

Fixed-term tenancies can work well for both parties, if things run smoothly. But a property investor who unsuccessfully tried to terminate a fixed-term tenancy, had a subsequent attempt at a rent rise overturned. The tenant, whose name has been suppressed, entered into a fixed-term tenancy with landlord Felicity Clements on November 22, 2019, ending a year later. It was a term of the agreement that the tenant had the right of renewal for one extra year – unless the premises was needed for the landlord’s family. On November 6, 2020, the parties appeared at the Tribunal. The tenants had given the landlord a notice of their intention to take up the renewed term on September 16, 2020. In response, the landlord sought to decline the renewal on the grounds that the property…

nz property investor  events calendar

Your monthly round up of property investment related events around the country. PROPERTY INVESTMENT SEMINAR ONLINE EVENTS: Tuesday, April 6, 6:30-8:30pm; Monday April 19, 6.30pm-8.30pm; Tuesday, April 27, 6:30-8:30pm. Book at: https://www.propertyapprentice.co.nz/free-property-investment-seminars/ PROPERTY INVESTOR WEBINAR ONLINE EVENTS: North Island, Tauranga April 7, Wellington and Auckland, April 17. South Island and Hamilton, April 21, Wellington and Auckland, April 28. Bookings via: https://positiverealestate.co.nz/property-investment-seminar/ PROPERTY INVESTMENT AND EDUCATION WEBINAR, AVAILABLE ON DEMAND OR VIA ZOOM WEBINAR. Hosted by Gilligan Rowe & Associates. Free to attend. For more information and to register: https://www.gra.co.nz/events/property-investment-seminars or phone +64 9 522 7955. PROPERTY SCHOOL SEVEN-MODULE ONLINE COURSE, AVAILABLE ON DEMAND OR VIA ZOOM WEBINAR. Hosted by Gilligan Rowe & Associates. Includes over 12 hours of videos, articles and quizzes. Cost is just $595. For more information and to register: https://www.gra.co.nz/events/gra-property-school or…

how to optimise your investment risk through diversification

‘Your own level of comfort with risk is important, regardless of your timeframe and investment mix’ Typical definitions of investment diversification focus on lowering risk by allocating money across a mix of asset classes, industries and geographies. The premise being that each would react differently to the same market events, thereby reducing your overall exposure to loss. However, a potentially more progressive approach to diversification is to consider how it can be used not necessarily to reduce risk, but to optimise it within the context of your personal investment objectives. Whether your investment portfolio comprises many different investment structures or is limited solely to your rental property interests and/or KiwiSaver, you have the opportunity (and ability) to optimise your risk by carefully selecting where you invest your money. To understand if your investments are…

a year of extremes

It’s been a full year since Covid-19 made its unwelcome appearance on our shores. The doom and gloom merchants who predicted the pandemic would see a plunge in property values have been proved wrong, as data around property continues to paint a picture of a booming market. However, with LVRs of 30% back in place for investors from March 1, and a leap to 40% in May, it’s predicted that the market may start to cool. “This is especially likely following the Minister of Finance’s direction to the Reserve Bank to ‘have regard to the impact of its actions on the Government’s policy of supporting more sustainable house prices’,” says CoreLogic’s head of research Nick Goodall. ”While, previously the RBNZ Governor, Adrian Orr, has expressed that the Bank has always done so, the…