ZINIO logo

NZ Property Investor August 2021

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
thinking outside the box

That’s why our profile this month is so interesting. A young couple (both 30 years old) have used a mixture of strategies (including selling dogs, partnering with family members, and using small inheritances) to enter the market. It’s yielded Jeremy Lawson and Katie Nimon some great results, and though they didn’t buy for capital gains, they’ve been rewarded by hefty property price rises since the market took off mid last year. Thinking outside the box was the motivation behind our lead story as well. Subdivision of existing properties can be a long and expensive process; but it can also be highly lucrative. Our writer Sally Lindsay has been talking with the experts to understand the process in key markets; we also have a case study from Gisborne who explains how their…

2 min
population and prices

Independent economist Tony Alexander says this tendency was turbo-charged by the Reserve Bank in 2015 when it temporarily applied a higher minimum deposit requirement for investors buying in Auckland than elsewhere. Aucklanders flocked to other locations where their deposit could stretch to buying a house no longer accessible nearby. “Seeing the impact of their actions the Reserve Bank’s next change in July 2016 was to require a 40% deposit for investors everywhere in the country.” Alexander says the tendency to buy-away was already there and remains today. “This is one reason why despite not having the shortage of houses Auckland has had from 2005, the regions followed Auckland’s price surge from 2012-16 and average house prices doubled.” In the regions, Dunedin’s population has risen by 17% and average prices have gone up by…

1 min
taking a house to fashion week

Although most investors buy in Keith Hay’s First Choice Range, it will provide an opportunity to see a partly finished three-bedroom, two-bathroom home from another of its series. It is the first time an entire home will be dropped into Aotea Square to be used as the official gateway to all Fashion Week activities. The house will be partly finished and furnished. Some of its rooms will be changed out during the week by interior designers using artwork and new furnishings. It will arrive in the square two days before Fashion Week begins after an early-hours-of-the-morning move by a transporter down Great South Road. Fashion Week runs from 23-29 August.…

2 min
government lobbied over new asset class

Chief executive Leonie Freeman says that while the council supports the Government using its whole toolbox to build more houses, the proposed changes make it less likely investors, developers and owners are going to help the Government build more houses. “While exempting new builds is encouraging, the Government has an array of levers it can pull to incentivise more housing to be built that don’t pull the rug out from under the feet of investors and developments,” she says. The Property Council is supporting build-to-rent (BTR) as the best option for increasing housing supply at pace. It is lobbying the Government to carve out BTR as a new asset class that aims to provide long-term rentals where tenants are treated as customers. “To amplify the potential of BTR, the Government needs to create…

1 min
nz property investor events calendar

PROPERTY INVESTMENT AND EDUCATION WEBINAR, available on demand or via live Zoom webinar. Hosted by Gilligan Rowe and Associates. Free. For more information and to register, please visit https://www.gra.co.nz/events/ property-investment-free-seminar or phone +64 9 522 7955. PROPERTY SCHOOL SEVEN-MODULE ONLINE COURSE, available on demand. Hosted by Gilligan Rowe and Associates. Includes over 12 hours of videos, articles and quizzes. Special price of $495 for New Zealand Property Investor magazine readers (usually $595). For more information and to register: https://www.gra.co.nz/events/gra-property-school or phone +64 9 522 7955. PROPERTY APPRENTICE EVENTS. Beginner’s guide to property investment. August 4, 6.30-8.30pm online; August 11, 6.30-8.30pm online; August 18, 6.30-8.30pm online; August 28, 1-3pm live in Greenlane. Visit https://www.propertyapprentice.co.nz/free-property-investment-seminars/ for more information. POSITIVE REAL ESTATE PROPERTY INVESTMENT WEBINARS. Canterbury property investor webinar, August 4; Bay of Plenty property investor webinar, August 4; South…

1 min
price plummet unlikely

The Reserve Bank has halted bond purchases as part of the large-scale asset purchase programme and the next step in removing the emergency support for the economy will be an actual increase in the official cash rate. The timing of this, however, is uncertain, says Kelvin Davidson, CoreLogic’s chief economist. “It could be potentially as early as November this year, or even a smaller chance of this month. “This is a tricky balancing act for the Reserve Bank, in trying to pre-empt a rise in inflation without pushing up the exchange rate too much – and hence dampening exports.” A looming rise in the official cash rate will directly affect the housing market, with borrowers already seeing mortgage rates increase – and from a low base for rates that could have quite a…