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NZ Property Investor December 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
what a year!

It would be an understatement to say that this has been a crazy year with so many unexpected things occurring. In the property market we have gone from no activity during lockdown into one very hot market with house price inflation moving along at a rapid clip. I’m not going to predict what the market will do from here. There are other people paid a lot more money than me to do that job. But one thing which is clear at the moment is that property is a popular asset class for people. With low interest rates, cash and bonds are not producing any meaningful returns. The share market has been strong, but volatile. It would seem with the current mix of economic factors that property is going to remain a sought-after investment for…

1 min
healthy homes compliance statement due

This statement requires certain details of the rental property’s current level of compliance with the Healthy Homes standards. These include information about the home’s heating capacity, standards of the insulation (including the R-value), ventilation, and draught-stopping measures. There is an updated residential tenancy agreement (which can be downloaded from tenancy.govt.nz) that includes all of the new insulation requirements. Landlords can also choose to use their own residential tenancy agreement, and download a separate compliance statement from the same website. This compliance template is comprehensive, and is designed to help ensure landlords enter all information required under the new regulations, and incorporate the requirements of the insulation statement, which has been required in new tenancy agreements since July 1, 2016. It will not be necessary to include a separate insulation statement in future, if…

2 min
nz property market rebound

It says profit-making resales of houses have increased nationally to 96.8%. On a median national resale basis that is a gain of $229,000. These figures are up from $220,000 nationally in the second quarter of 2020, and not far short of the record peak of $233,000 at the start of the year. Median resale loss, or “pain”, also improved over the latest quarter, from $22,500 to $20,000. That was the smallest median resale loss in two years. CoreLogic’s Pain and Gain Report, compares resales to the original purchase price. The national trend of strong property “gain” and minimal “pain” was replicated in most of the main centres, consistent with the broad rebound CoreLogic has also seen for sales activity and property values. In Hamilton and Wellington, about 99% of resales in the latest quarter…

1 min
nz property investor events calendar

PROPERTY INVESTOR WEBINAR (ONLINE EVENTS ONLY), December 2 and 9. New Zealand wide events. Bookings via https://positiverealestate.co.nz/property-investment-seminar/ PROPERTY INVESTMENT & EDUCATION WEBINAR, December 3. Hosted by Gilligan Rowe & Associates. Free to attend. 7:30pm. For more information and to register, please visit https: //www.gra.co.nz/events/property-investment-seminars or phone +64 9 522 7955. RONOVATIONZ “ON THE ROAD” OTR 9:30am to 3:30pm on Saturday 5th, 12th or 19th December Join Ron and the Team behind the scenes as they spend the day looking at properties, learn hands-on where the best suburbs are, how to add value and much, much more. Spaces are limited and by invitation only - interested? Email your details to info@ronovationz.com or call 0226 888 888 PROPERTY SCHOOL SEVEN-MODULE ONLINE COURSE, available on demand. Hosted by Gilligan Rowe & Associates. Includes over 12 hours…

1 min
landlords.co.nz  top five – november

1 What lies ahead for investors? Election 2020 is done and dusted – and a red landslide has left the Labour Party firmly in charge of the next government. But what could that mean for property investors? 2 Tribunal divvies up blame in maintenance ruling New Zealand’s ageing housing stock and tradition of informal landlord-tenant relationships have the potential for complex disputes where fault lies with both parties – as illustrated by a recent Tenancy Tribunal ruling. 3 Education for landlords by landlords Self-managing landlords are signing up in droves for the NZ Property Investors’ Federation’s new education programme which aims to help landlords run their properties like professionals. 4 The importance of correct structuring Structuring the ownership of a property portfolio is rarely the first – or even the second - thought…

2 min
rbnz asked to cool market

Deputy Prime Minister Grant Robertson has announced that he’s contacted Reserve Bank Governor Adrian Orr for advice on ways in which they can support the Government around skyrocketing house prices. This comes in the wake of major banks moving to restrict investor LVRs to 70%, ahead of the Reserve Bank’s rule change on March 1. Economist Tony Alexander says that this, in effect, gives the Reserve Bank a remit for suggesting wide-reaching changes, many of which are likely to affect investors. “I don’t think it is likely that the Reserve Bank will change interest rate polices, but I think they could suggest bringing in debt-to-income ratios and LVR restrictions that strongly differentiate between owner-occupiers and investors,” he says. Alexander believes that if 30% deposit restrictions don’t cool the market, there is a chance that…