NZ Property Investor

market rocks on

This is why we’ve chosen not to focus on “what will happen to the market” crystal ball gazing for this issue. Last year, it was the hot topic, but our market seems immune to lockdown price crashes … for now. Instead, we are headlining with a success story. One that we hope will inspire you and help you think about your portfolio’s potential in a different way. Born in New Plymouth and from humble beginnings, Ilse Wolfe didn’t have an affluent family to shepherd her into investment. She went to a “decile one equivalent school” (her words) and her success was forged from determination, intelligence, and the ability to see opportunity where others saw obstacles. Her property journey has seen her develop a new way of pumping up the value of property –…

investors make slight come-back

The market share for mortgaged multiple property owners (MPOs), or investors, rose from 24% in July to 25% in August and the share for first home buyers dropped from 27% to 25%. However, the number of settled transactions in August was clearly affected by lockdown – down 49% compared to the average for the prior 12 months. Given this smaller sample of data, CoreLogic says it’s cautious about saying that investors have genuinely made a comeback in the past month or so. CoreLogic’s chief property economist Kelvin Davidson says it’s more informative to look at figures across July and August combined. And on this basis the downward trend for mortgaged investors’ market share across the country is clear. “At 24%, their share of the market is back down at the levels of…

the great cross-lease conversion

While there have been calls for a law overhaul allowing owners of these titles to be able to convert them to far more desirable, cleaner fee simple titles, little has happened at a political level. Cross-leases were originally a workaround on subdivision restrictions, and provide a standard-form set of land covenants between neighbours. In small developments, they are often preferable to unit titles, especially given the lack of clarity in many areas of unit title law. Cross-lease properties can be cheaper for investors to buy and they make good rents, however, there are restrictions on what can be done in terms of making extensions or alterations. It gives neighbours a measure of control as the property owner wanting to do work on their property has to get the neighbours’ consent. Now many cross-lease title…

is the end in sight for house price surges?

Independent economist Tony Alexander says the endgame for the converging periods of surging house prices is underway. He says migration will have a big effect on the housing market. Making a rough calculation that if the borders open in January, Alexander says there will be a backlog of somewhere between 55,000 and 75,000 Kiwis “wanting” to leave New Zealand. If that is offset against a backlog of about 5,000 people wanting to get into the country, he says there is scope for a large outflow of Kiwis overseas when things return to whatever the new global movement “normal” is. “The net migration flow of Kiwis looks like it will easily turn negative again once the borders open and could comfortably exceed the long-term average of -17,000.” Alexander says fewer houses will be bought…

abandonment results in exemplary damages

Sarah Jane Logan Roberts and Samuel Thomas O’Neill had a fixed term tenancy starting in October last year and ending on May 23 this year. The landlords, who have name suppression, found the premises abandoned on March 30, and have not heard from the tenants at all. They applied to the Tenancy Tribunal for rent arrears, exemplary damages and compensation. On March 27, the landlords wrote to the tenants, giving the required 48 hours’ notice that they wanted to replace the smoke alarms and undertake some maintenance to the exterior of the house. The tribunal heard the tenants replied the same day, requesting the landlords provide evidence the smoke alarms required updating, saying they were working “fine” and the request was simply an opportunity to “spy” on them. They also claimed they were…

nz property investor  events calendar

PROPERTY INVESTMENT AND EDUCATION WEBINAR, AVAILABLE ON DEMAND OR VIA LIVE ZOOM WEBINAR. Hosted by Gilligan Rowe & Associates. Free to attend. For more information and to register, please visit https://www.gra.co.nz/events/property-investment-seminars or phone +64 9 522 7955. PROPERTY SCHOOL SEVEN-MODULE ONLINE COURSE, AVAILABLE ON DEMAND. Hosted by Gilligan Rowe & Associates. Includes over 12 hours of videos, articles and quizzes. Special price of $495 for NZ Property Investor magazine readers (usually $595).To register: www.gra.co.nz/ps-offer or phone +64 9 522 7955. POSITIVE REAL ESTATE ONLINE EVENTS. South Island Property Investor Webinar October 6; South Auckland and Hamilton Property Investor Webinar October 6; Bay of Plenty Region Property Investor Webinar, October 6; Wellington and Lower North Island Property Investor Webinar October 13; Auckland and Northland Property Investor Webinar October 6; South Island Property Investor…