NZ Property Investor

surviving the pandemic

New Zealand might now be emerging from the strict bubble of level four lockdown, but life is not set to be the same. The move into level three mean there are hints of a return to normal, but it’s a “new normal”, we are told. The threat of Covid-19 has not disappeared and the economic fallout from the crisis is something we’ll be dealing with for a long time. That fallout will affect most of us in some way, just as the lockdown did. Here at NZ Property Investor magazine, the lockdown didn’t stop us publishing. But it did force some changes. The April issue of the magazine was 95% completed, with just the cover to go, when the Government closed our printer down. That meant we had no option but to…

rta reforms steam on

On March 27, Housing Minister Megan Woods advised landlords and tenants that all non-essential parliamentary business, including that before select committees, was to be suspended during lockdown. But, despite this advice, the Social Services and Community Committee heard oral submissions on the Residential Tenancies Amendment Bill, via Zoom video-conferencing, throughout April. This has left many rental property owners bemused and concerned – and questioning why the hearings on such major reforms for the industry would be pushed through at a time when people were focused on the Covid-19 crisis. Along with the National Party and the NZ Property Investors’ Federation, REINZ have called for the rental reforms to be put on hold until the country returns to some “semblance of normality”. REINZ chief executive Bindi Norwell says that rental property management companies are currently…

landlords.co.nz top five – april

1 Life at Level-3 for residential landlords It won’t be a full release from lockdown, but moving to alert Level-3 will mean businesses that can operate safely will be able to reopen. So what does that mean when it comes to residential property? 2 What lies ahead for the housing market? As New Zealand begins to settle into the “new normal” of the Covid-19 lockdown, commentators have started releasing their (tentative) outlooks for the housing market. Here’s a summary of some of them. 3 Commercial sector facing hundreds of millions in lost revenue Some large commercial tenants are refusing to pay rent and this could devastate the commercial property sector, the Property Council New Zealand is warning. The Property Council is calling for property owners, tenants and the Government to act quickly…

fears over tougher servicing tests

Banks are running serviceability tests based on customers’ current income, even if they have been temporarily furloughed due to the crisis, or put on reduced hours during the lockdown, advisers report. Advisers say some banks are not accepting past earnings, or projected future earnings, while calculating serviceability. This approach makes it difficult for borrowers to complete home purchases, pay for new-builds nearing completion, or refinance mortgages during the Covid-19 lockdown. The issue was highlighted in a recent survey of the lending market conducted by independent economist Tony Alexander. For debt-servicing ability, current virus-constrained income levels are being used, not expected income levels in the future when things are expected to be better, he reported. “In some cases, anticipated bonuses, overtime, commissions are not being considered for income projection and therefore debt-servicing ability purposes. “In other words,…

get property smart

RealESmart.co.nz is an app that draws on reliable market data to help investors work out the likely returns, and decide on potential residential property investments. It does this by calculating the borrowing required, factoring in the expenses associated with owning residential property, and working out net/gross yields on a property. It also provides handy information on market trends and property data, saves multiple properties to compare the relevant data and generates reports for property professionals like mortgage advisers and accountants. Developed by property consultant Vesna Wells and her husband Tony, the original concept came about back in 2002 when they wanted to get into property investment themselves. “We set up an Excel spreadsheet to help us make property decisions on properties. Sixteen years on, we were looking for an app that was more sophisticated…

heated exchange

The definition of “antisocial behaviour” was spelled out to a pair of tenants in an interesting case brought to the Tenancy Tribunal in Hamilton. Taking place over the phone due to the Covid-19 lockdown, the case against Callum Witton and Samantha Monk was brought by landlords Netram and Reena Sharma on April 17. The incident occurred after Witton made a threatening remark to Netram Sharma when he was conducting repair work in the rental property. Sharma described the event, which occurred in February this year. He had entered the property to attend to a fireplace that was not working. After taping up a portion of the fireplace, Sharma was confronted by Witton, who demanded the fireplace be replaced. When Sharma told him to just use the heat pump instead, Witton told him to “f**k…