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NZ Property Investor April 2019

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
lessons from tragedy

Sitting down to write this editorial just a few days after the Christchurch mosque terror attacks it feels wrong not to address what happened. Here at NZ Property Investor magazine, our hearts go out to all the people affected by the tragic events of March 15. We send our deepest condolences to the families of the victims, and a message of support to the wider community. For me, alongside an overwhelming sadness, it is shock that is the dominant emotion. The violence perpetrated on innocent people does not represent the New Zealand that we know. Now, much needed dialogue about how the attacks happened, as well as the role of social media, gun access, and security agency oversights are already starting to take place. These are all critical discussions the country needs…

1 min
easing the analysis process

Prospects.app is a subscription based analysis package that allows users to run scenarios for different rent amounts, purchase prices and proposed renovations on properties they are interested in. It also enables investors with multiple properties to manage their portfolio and review its performance, as well as compare potential new purchases against their existing portfolio. Al and Tanya Check developed the tool which is accessible on any type of device through a web browser, removes the need for calculations and paper files when assessing a new purchase. “It collates all the necessary information in an easy to use, accessible place with links to rates, rents and national sales data, and takes the stress and complexity away from the analysis process.” Al and Tanya, who are investors themselves, initially built their product to support their own…

1 min
fire levies under review

Internal Affairs Minister Tracey Martin says there are a number of flaws in the insurance-based funding of the levies, which were introduced in 2017. These include the fact that property owners who do not insure are able to “freeride”; the levies increase insurance costs and may deter people from getting insurance; and administration is complex for insurers. Martin says she has also heard concerns from large property owners who have faced substantial levy increases under the modernised levy regime. “While the regime would improve equity across levy payers, it appears that it may unnecessarily impact on large property owners.” The Government thinks there may be better ways to fund FENZ and there appears to be a trend away from insurance-based levies in other countries, Martin says. The review will look at a wide range of…

1 min
accessing prefab finance

Prefabs are increasingly touted as the best way to address New Zealand’s housing shortage, yet banks have long been reluctant to lend on them. That’s because of the complex issues surrounding the security of prefab houses while they are being constructed in a factory. But the situation looks set to change as Westpac NZ became the first bank to launch a dedicated mortgage product, Westpac Prebuilt, aimed at helping get Kiwis into prefabricated homes. Westpac NZ head of home ownership Mark Dunmore says they believe houses manufactured off site are crucial to addressing New Zealand’s lack of affordable construction options. “We are offering a simple, streamlined process for prefab buyers and builders to help put more New Zealanders into affordable and well-designed homes. “Our new way of funding essentially means we have security before the…

2 min
carpet burn

It’s one of those areas of rental property confusion that comes up time and time again. Carpets – or more specifically, dirty or damaged carpets and what that means at the end of a tenancy. While it might seem straightforward, questions about carpets are among the most frequently asked queries submitted to our property management expert. That’s because it’s an area that is very situation specific. Throw in the tensions around damage in the post-Osaki world and the spectre of pets in rentals and it can easily become a minefield. Indeed, one of the Tenancy Tribunal’s most controversial rulings in recent years revolved around the damage done to a carpet by pets in a property that had a no-pet clause in the tenancy agreement. In the case of Tekoa Trust v Stewart,…

6 min
soft landing ahead

New Zealand’s property market has experienced a heady few years, with first Auckland and then much of the rest of the country enjoying strong price growth and vibrant market activity. But cycles move in peaks, then troughs and it now looks like the end of the golden weather is approaching. There can be no doubt that the market, again led by Auckland, is slowing – despite pockets of regional growth. Yet while the spectre of the Sydney and Melbourne market’s ongoing decline continues to grab attention, the consensus view among the experts is that a similar slump is not on the cards for New Zealand. SALES TAKE A TUMBLE Those looking to February’s sales data could be forgiven for thinking otherwise, however. Bluntly put, it makes for sobering reading. According to the latest REINZ…