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category_outlined / Business & Finance
NZ Property InvestorNZ Property Investor

NZ Property Investor Mar 2018

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.

Country:
New Zealand
Language:
English
Publisher:
NZ Property Investor Magazine Ltd
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12 Issues

IN THIS ISSUE

access_time2 min.
new strategy

‘It takes just a little bit of lateral thinking when hotspots aren’t so obvious’ There are currently opposing forces at work in the property market. We’ve got legislative changes pulling on one end of the rope and, on the other, strong population growth and low housing supply. It’s an unsettling time for some investors. Proposed and pending changes to migration laws, the tax regime, rental property regulations and the KiwiBuild programme will all have their impact on market conditions and the investors’ ability to find deals that work.It’s hard to strategise for future investing when there are regulatory changes afoot, let alone when the market (and market commentators!) don’t seem to know whether it’s coming or going. Over the past few years investors have targeted high capital…

access_time2 min.
over-reach risk in tax change

Revenue Minister Stuart Nash is introducing a Supplementary Order Paper to the Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill to make the changes. Nash says the extension means that profits from residential investment properties which are bought and sold within five years will be taxable, with some exceptions.“The measure will bring fairness back into the tax system, and reduce speculative demand, which will help improve housing affordability for owner-occupiers.”However, neither Treasury nor the IRD seem entirely convinced on the wisdom of the changes.In a regulatory impact statement (RIS) prepared for the Ministers of Finance and Revenue, they say it is difficult to quantify the benefits and that there are several key risks.One of those risks is “over-reach” which means there is greater risk…

access_time2 min.
rentals decrease not due to airbnb

Both Auckland and Wellington are struggling to deal with rental supply shortages and some commentators have pointed to Airbnb as one of the reasons for the decrease in supply.According to Airbnb, which tracks data on all of its listings, the total number has more than doubled, in most parts of the country, in the past year.But when broken down into active rentals in the main tourist centres the numbers of Airbnb properties don’t seem huge. This is particularly the case when compared to the total number of private rental properties on the market, which numbered 453,135 in 2013.In contrast, Airbnb figures show there are 9,330 active rentals in Auckland, 2,844 active rentals in Wellington, 2,518 active rentals in Christchurch, and 1,469 active rentals in Queenstown.Further, active rentals in each…

access_time1 min.
joint approach required

It took 18 long months, but housing strategist Leonie Freeman has finally succeeded in getting the major players in the housing sector to agree that collective action is the way forward for Auckland. Minister of Housing Phil Twyford, Auckland Deputy Mayor Bill Cashmore, and a range of industry, NGO and iwi chief executives, including Property Council head Connal Townsend, all attended Freeman’s latest housing action event.The upshot of the event was the formation of the cross-sector working group, which will work together to figure out ways to fix the Auckland housing crisis.Freeman, who first started agitating on the issue in October 2016, says this is a significant development.She says the change is due to the new government, who believes that there is a problem, and the new minister, Phil…

access_time2 min.
landlord costs up

Changing regulations mean the costs involved with owning a rental property are rapidly mounting but they don’t need to be the final straw for serious landlords.First, there is the Healthy Homes Guarantee Act and the costs that will come with ensuring compliance with the set of minimum standards it introduces.Then there is the Government’s plans to ring-fence losses, and the increased management costs likely to come, with the tenancy law reform set to be introduced into Parliament later this year.At the same time, rates and insurance premiums are on the rise. It all makes for a host of increased financial considerations and costs for landlords.Auckland Property Investors’ Association president Andrew Bruce says he hopes the mounting costs don’t end up meaning “death by a thousand cuts” for many landlords.“It…

access_time8 min.
opposing market forces at work

‘January’s warmer weather clearly helped sales, as it’s the first time we have seen a positive year-on-year sales increase in 19 months’BINDI NORWELL Heading into 2018, New Zealand’s housing market was enjoying a resurgence of sorts. Some house price growth was noticeable and there was evidence of increasing market activity. However, the question was whether those feel-good summer vibes would keep flowing in the new year.Now, after much anticipation, January’s housing data is out and it tells a muddled story. It is worth bearing in mind that, traditionally, January is a quiet month due to the holiday period. Yet much of the data suggests that a cooler market characterised the first month of the year.Commentators are still saying the late 2017 market recovery is likely to continue…

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