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NZ Property Investor January 2020

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
staying upbeat

You can just never tell how a year will pan out … At the start of 2019, investors were primed for a year of change and challenges. There were genuine concerns about what might happen with the market, given the trajectory the Australian market was then on, along with the bedding in of new government policies. But 2019 didn’t unfold quite as expected or feared. First up, after months of anticipation, the Government decided to ditch the proposal to introduce a capital gains tax. This development appears to have eased some of the concerns around investing in property going forward. As the year progressed, mortgage rates just kept being lowered and they have now been sitting at a historically low level for some time. Serviceability criteria was also eased by many banks…

1 min
landlords.co.nz  top five – january

1 Changes to RTA announced The Government announced its long awaited tenancy law reforms on Sunday and they mean that landlords will no longer be able to get rid of tenants without reason. 2 Commercial disrupter proves popular New commercial property disrupter, Jasper, has hit the ground running with their first investment offering achieving full subscription in just 36 hours. 3 SFO deception charges for investors Four Auckland property investors have been charged with fraudulently obtaining millions of dollars in home loans. 4 Key reform will only protect bad tenants Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates. 5 Pre-summer pick up for rental market The rental market is heating up for…

2 min
opportunities in changing student rental market

A bold new Waikato property management company aims to help landlords and students take advantage of the changing rental landscape. The team at Hatch Property Management, based in central Hamilton, is dedicated to changing what both landlords and students think about accommodation and the relationships needed to manage it. General Manager Martin Thomas says it is focused on helping landlords understand students’ growing needs, so the letting process is much smoother. “We want to help move people away from the traditional notion of what students are like and student housing is like.” “Students’ needs have changed rapidly… it’s really moved further upmarket. The international student market has helped but as it’s changed, domestic students are also looking for better accommodation. As the accommodation continues to improve, so do student expectations.” Thomas says this trend will…

1 min
no change to lvrs

Reserve Bank governor Adrian Orr says the LVRs have been successful in reducing the more excessive household mortgage lending and improving the resilience of banks. Yet fears of excessive high LVR lending led the Reserve Bank to decide not to ease the current settings. Orr says financial system vulnerabilities remain “elevated” and international risks have increased. He sounded a caution about the low rate environment leading to increased debt and inflated asset prices. It means low rates are necessary and have helped to cushion the New Zealand economy and borrowers from the effects of weaker global growth. But, over the longer term, prolonged low interest rates could lead to some borrowers taking on too much debt and asset prices becoming overheated, Orr says. “This could increase the vulnerability of the economy and borrowers to…

1 min
changing landscape

So a new property management company has set out to change the student rental landscape in Hamilton. Hatch Property Management, which launched in December, specialises in student rentals and is set to offer a new approach to the market. The company’s chairman, Tony Begbie, says they will deliver different, and better, value propositions to landlords. “Our propositions are designed to maximise benefits, while mitigating risks. And our services are driven by creating connections and building meaningful partnerships.” Hatch grew out of the Wintec Student Residence Trust, which is primarily focused on purpose-built student accommodation. It is a charitable company and will return all future profits back to the Trust. Its aim is to provide more quality student accommodation around Hamilton. To do this they want to work with landlords open to using their properties as…

7 min
picking up the pace

All the property market doom merchants are likely to be feeling a bit disappointed round now. This time last year, the belief that New Zealand would follow in the path of Australia and experience a big decline was firmly held by many. But that view is now outdated. In the last few months of 2019, the relevant data consistently turned in solid results, which pointed to definite signs of an uptick in the market after a period of quietening. Most notably, this trend included the long dormant Auckland market. Commentators now expect 2020 to be a stronger, busier year for the property market than 2019 was. So, as is our January tradition, we take a look at the state of play in key markets around the country as we head into the…