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NZ Property Investor July 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
calling out vilification

Fevered anti-property investor emotions have been a prominent feature of this property cycle. At the peak of the market, investors were vilified as responsible for the sky-rocketing house prices which were keeping first home buyers out of the market. They were also widely maligned as slum landlords forcing tenants to live in unhealthy, overpriced properties. Despite the best efforts of investor advocates to rebut them – as well as the market slowdown – it appears these investor-hostile perceptions remain firmly in vogue. A recent NZ Herald report on the GRA Property Leader’s Event at the end of May is a striking example of this. The article covered the event in a determinedly negative fashion. Its intent seemed to be to present investors as money-grubbing and out to exploit tenants. It was disparaging…

3 min
build-to-rent will cost

Housing Minister Phil Twyford is exploring the idea of government involvement in build-to-rent developments in a bid to boost the supply of high-quality, affordable rental properties. A scheme that could allow large commercial investors to build apartments, which would be used as private rentals on Crown land was a promising idea, he told a Select Committee recently. Twyford says he is seeking advice from officials and talking to developers about the possibilities but there are no further details available yet. While the Minister believes a build-to-rent scheme would provide more housing choice, there are some staunch critics of the idea. Stop the War on Tenancies spokesman Mike Butler says the proposal would require substantial government financial support and guarantees to get off the ground. For example, total annual upper-quartile rent on a 600m2 development of…

1 min
property investor events calendar

JULY THE WINDOW OF OPPORTUNITY IS NOW July 27 Doors open at 9:00am for a 9:30am start, finishing at 2pm, Five Knots, 30 Tamaki Drive, Mission Bay. Register at www.ronovationz.com PROPERTY INVESTOR NIGHT July 1, Christchurch, July 2, Auckland, July 8, Napier, July 15, Tauranga, July 22, Auckland, July 23, Dunedin, July 29, Wellington and Hamilton. Free to attend. Book at www.positiverealestate.co.nz/NZPI For more information about listing your event, please contact Lisa Wise lisa@tarawera.co.nz. Last date for entries for August 2019 issue, July 11.…

1 min
landlords.co.nz  top five

1 Don’t count on a market upturn It’s been a spectacular run for the market but this property cycle has done its dash and recent positive developments aren’t likely to cause a major upturn, one top economist says. 2 Riding out the cycle Fasten your seatbelts – the market is heading to the bottom of the cycle, but one property expert says that serious investors shouldn’t panic if prices fall. 3 What landlords can’t ask tenants Think you know what you can ask a prospective tenant? It might pay to check out the Privacy Commissioner’s new guidelines to see if what you are asking really is acceptable. 4 Gloomy expectations around super city Auckland house price expectations have turned negative for the first time since 2009 with a new ASB survey turning in…

1 min
lending help is at hand

Interest rates may be at record lows, but credit availability has actually got much tighter. Veteran adviser Kris Pedersen, of Kris Pedersen Mortgages, says more comprehensive credit reporting is required now, so credit checks and bank servicing calculations are far more rigorous. “Additionally, banks are much less keen on interest-only loans. When they’re up for renewal, investor portfolios are reassessed and, if they don’t meet the required terms, they are rolled over on to principal and interest loans.” This situation is catching many investors out and it can make their cashflow much worse, he says. It’s not good news for investors looking for finance, but now help is at hand in the form of a new lending product, Select, which is available via non-bank lender Bluestone. Pedersen says Select allows for higher LVR lending, can…

2 min
put it all in writing

There’s plenty of horror stories about the chaos that can result from the Illegal sub-letting of a rental property by a tenant. And, in many of them, the landlord has little chance for recourse as their tenancy agreement didn’t prohibit it. If a tenancy agreement does feature a “no sub-letting” clause, the situation can be starkly different. A recent Tenancy Tribunal decision, Barfoot & Thompson v Syed [2019], provides a spectacular example of this. Acting for the landlord, Barfoot & Thompson rented a Mangere East property to Zain Syed from July 20, 2018 to January 20, 2019, at a weekly rent of $500. In the tenancy agreement it stated that the tenant couldn’t sub-let the property without the landlord’s permission. However, between August 16 and December 6, 2018, Syed sub-let the property without…