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NZ Property Investor Aug 18

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.

New Zealand
NZ Property Investor Magazine Ltd
12 Issues

in this issue

2 min
new builds investors’ future

In this month’s issue we lead with a story on the Auckland Unitary Plan – while it may seem a very Auckland-centric piece it does have relevance for investors nationwide. The idea was to highlight a theme you will hear more about in the magazine. That is the changing face of property investment. The so-called housing crisis in this country is really just a supply/demand imbalance. We need to build more houses. While investors have traditionally bought what I call second-hand stock, ie: existing houses – in the future, I believe investors will play an important role in building new houses and creating new stock. At first I wasn’t too caught up in the Unitary Plan, but sometime ago I heard Hamish Firth from Mt Hobson Group explain it all to a group of…

2 min
rental ‘fix’ plan criticised

Renters United’s Plan to Fix Renting features a list of 36 requested legislative changes. These include restricting rent increases to once a year and limiting them to the rate of inflation; enforcing minimum quality standards for rental housing; a major revision of the Tenancy Tribunal; and requiring all property managers to be licensed. But it is the proposal for tenants to have the right to stay in a rental property until they choose to leave – as long as they pay the rent, don’t damage the place and don’t engage in serious illegal or antisocial behaviour on the property – that has landlords up in arms. That’s because it means that rental properties with sitting tenants would only be saleable to other landlords willing to purchase with the existing tenant in place indefinitely. Auckland…

6 min
the ‘three ps’ of property investing

Jarrod Kerr is the Chief Economist at Kiwbank and Jeremy Couchman is a Senior Economist. The housing market has recovered from the lows recorded in sales last year. House prices nationally are up 4% year-on-year. Although gains are largely being made in the regions, as they play catch-up to the main centres, Auckland’s market remains muted. Investors are uncertain, and cautious, because the Government is gearing up to implement policies targeted at speculators. These policies include tightening the bright-line capital gains test, removing the negative gearing tax loophole and banning foreign purchases of existing stock. The policies, and the associated uncertainties, may hamper house price gains over the next few years. But we don’t expect a major correction. There is a housing shortage and mortgage rates remain low. And unemployment is…

1 min
heating failure costs

That’s according to a new Tenancy Tribunal ruling which has left a Raglan landlord having to pay exemplary damages of $500 to their former tenant for that failure. Raglan Property Management was looking after the self-contained unit that Maryanne Brunetti rented without viewing before taking up the tenancy. Brunetti was unhappy with the rental property, which she said was damp and cold, from the word go. Eventually, she went to the Tribunal seeking compensation for failure to maintain the premises and seeking damages for the lack of heating at the property. The Tribunal dismissed Brunetti’s claims on lack of maintenance, but it did award her damages for the lack of heating. Raglan Property Management said they were told by the council that no heating was needed – only an electrical point in the lounge. However, the…

6 min
more than a winter chill

‘Sellers can sometimes have an inflated – even unrealistic – view of the value of their property. This is resulting in slower than usual average time to sell properties across some areas’ DAVID NAGEL As winter’s chill has settled over the country, so too it has over the national property market. Sales activity is down, listings are down and price growth is muted. But while some put it all down to the traditional seasonal slow down, there is more to the situation than a drop in temperatures. June’s property data serves to highlight that the softer market is here to stay. Auckland may have been the first market to acclimatise to the new normal, but it has been followed by the other main centres and now those runaway regional markets are dropping…

1 min
what’s driving house prices?

REINZ HOUSE SALES: DOWN Once seasonally adjusted, sales volumes were down nationally in June as compared to May. They were also down year-on-year. Sales activity was down month-on-month and year-on-year in both Auckland and Wellington. INTEREST RATES: DOWN Interest rates remain low and banks have been battling it out with cuts to short-term rates of late. But it is still expected rates will rise over the next year. OCR: DOWN The Reserve Bank left the OCR on hold at the record low of 1.75% in May and most commentators expect it to stay on hold until mid to late 2019. IMMIGRATION: DOWN Monthly net migration dropped in June as compared to May. Annual net migration was down in June for the fifth month in a row and commentators say the rate is easing. BUILDING CONSENTS: UP Building consents were…