NZ Property Investor March 2021

Of particular concern is the removal of the 90-day notice. What will be interesting to watch over the coming months is how this plays out and how the Tenancy Tribunal rules on the first cases it hears. But now the Residential Tenancies Act (RTA) changes are in place it is time for the Government to reform the property management sector. According to the Real Estate Institute there are 184,000 rentals under the care of property managers. Our recent personal experiences with a firm which claims to be very precise about how it manages rentals is anything but. The service has been unprofessional and the conduct of the staff has been appalling at times. There are plenty of good property managers out there but often we hear stories of unprofessional managers. Indeed, here at the magazine…

Grant Robertson told media that the Government will announce a rolling series of measures, including a tightening of rules around property speculation, last month. Speaking at the release of the Budget Policy Statement, he said that the aim was to dampen the level of demand in the country. “The first of [the measures] will be on the demand side measures which will come in late February. We all know that building more houses, particularly affordable houses, is critical. But we also can do more to manage demand, particularly from those who are speculating.” But Sharon Cullwick, executive officer at New Zealand Property Investors Federation (NZPIF) says that these measures are unlikely to work. “The five-year bright-line test is already catching a lot of potential speculators,” she says. “And any rules are unlikely…

The February 2021 survey, which gathers the views of licensed real estate agents countrywide, revealed that fear of missing out (FOMO) was behind the surge in house sales, and that 31% of real estate agents were reporting an increase in investor activity. This needs to be put into context, however: the figure of 31% is down from a peak of 59% in November and 45% in December. “This is a greater easing off of market presence than for first home buyers and that is likely to partly be because of the extra tightening of minimum deposit requirements for investors by one bank. But a key factor may well be reduced hopes of finding a bargain,” says Alexander. Only 2% of real estate agents say they are seeing fewer investors selling their properties. “This is…

Your monthly round up of property investment related events around the country. PROPERTY INVESTOR WEBINAR (ONLINE EVENTS ONLY) South Island, March 3; Wellington and Auckland, March 10; South Island, March 17; Wellington and Auckland, March 24. Property Investor live events, Tauranga, March 3; Hamilton, March 17. Bookings via https://positiverealestate.co.nz/property-investment-seminar/ PROPERTY INVESTMENT SEMINAR Online events Thursday, March 4, 6:30-8:30pm; Wednesday, March 10, 6.30pm-8.30pm; Thursday, March 18, 6:30-8:30pm. Live event at Greenlane office on Thursday 25 March 6.30pm-8.30pm. Book at https://www.propertyapprentice.co.nz/free-property-investment-seminars/ PROPERTY INVESTMENT AND EDUCATION WEBINAR Available on demand or via Zoom webinar. Hosted by Gilligan Rowe and Associates. Free to attend. For more information and to register, please visit https://www.gra.co.nz/events/property-investment-seminarsor phone +64 9 522 7955. PROPERTY SCHOOL: 7-MODULE ONLINE COURSE Available on demand or via Zoom webinar. Hosted by Gilligan Rowe and Associates. Includes over 12 hours…

The latest CoreLogic Property Market and Economic Update (released in late January) backs evidence from the market indicators that investor demand has surged in the past quarter. Kelvin Davidson, CoreLogic’s senior property economist, says that this growth is of historically significant proportions. “CoreLogic’s Buyer Classification series shows that mortgaged investors surged to a 27% market share in the final quarter of 2020, up from 24% in Q2. This growth coincided with a 6.1% increase in property values in the quarter; a rise not seen since the three months to February 2004 at 6.6%.” Reserve Bank’s reinstatement of a 30% LVR for investors starting in March, and a 40% deposit requirement in May could slow the interest from investors. An extension to the current five-year hold period for the bright-line test could be on the…

The definition of “intentional damage” is notoriously slippery. But adjudicator J Robertshawe found in the favour of a landlord who claimed that her tenants had caused damage to the property beyond the usual “wear and tear”. Mary Fisher rented out the property in Brooklyn, Wellington to Vineet Mewara, Ajay Saini, Rajbir Singh, Gurpreet Singh, Karampreet Singh and Saajan Narula in March 2018. However, she ended the tenancy on January 31, 2020 through a 90-day notice after she became concerned about rent arrears, the number of people living at the property, and the state of the property when she did her inspections. After the tenancy ended, Fisher applied for rent arrears, substantial compensation for cleaning costs and damages, exemplary damages, refund of the bond, and reimbursement of the filing fee. The tenants defended the…