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NZ Property Investor Dec 18

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.

Country:
New Zealand
Language:
English
Publisher:
NZ Property Investor Magazine Ltd
Frequency:
Monthly
$7.57
$74.79
12 Issues

in this issue

2 min
knowledge is power

Across the ditch, fears are growing about just how far the once booming property market might fall. One new report estimates that Sydney and Melbourne house prices could fall by 12 to 17% from peak prices and trigger a recession. The situation here stands in stark contrast. New Zealand’s market is currently experiencing the traditional spring lift which has been boosted by another round of historically low mortgage rates. While commentators don’t expect the current heat to last, they are certainly not predicting catastrophe. Rather the prognosis tends to be for flat or very moderate price growth for the next couple of years. That’s in large part due to New Zealand’s persistent supply shortage, particularly in Auckland and Wellington. And it is in spite of the Government’s ongoing housing market and tax…

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1 min
reform of rta fiercely opposed

Stop the War on Tenancies spokesman Mike Butler says the proposal to do with requiring purchasers to take on sitting tenants during the sale of rental property generated the biggest response from submitters. “A whopping 98% thought that if a property is being sold, the new owner should be able to request vacant possession of it.” The proposed removal of 90-day notice no-cause terminations also generated strong opposition, with 94% against it. Many submitters said landlords never remove a tenant without cause, he says. “This misguided proposal is intended to give tenants additional security but would have the effect of sheltering badly-behaving tenants from any consequences.” Some of the other proposals prompted staunch disagreement from submitters, with 92% saying landlords should have the right to refuse pets without giving a reason and 78% opposing…

1 min
new charges for landlords

Parliament passed legislation banning letting fees in November, with the ban due to come into effect from December 12 this year. But growing numbers of property management companies are now confirming they will be passing letting costs on to landlords. All say this is to cover the time and costs associated with finding and placing new tenants, but approaches to the new charges vary. While Quinovic plans to charge landlords a “tenancy fee”, which would be a flat rate of $550 plus GST, Crockers are opting for an “admin fee” of $20 a month for landlords - regardless of whether a tenancy changed or not. Barfoot & Thompson are still finalising their plans while others are likely to simply increase the percentage commission they take from the rent each week. But there is a high…

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1 min
rate wars impact on market

Recent weeks have been good for those seeking loans for new property purchases: the big four banks are all offering below 4% rates and others have also had similar rate packages on offer. Westpac’s chief economist Dominick Stephens says falling mortgage rates are boosting the housing market and are likely to sustain house price growth in the near term. “But mortgage rates will not keep falling forever. Actually, wholesale fixed interest rates have risen quite sharply over the past week or two. “That should at least arrest the decline in fixed mortgage rates, if not reverse it. This is why we think the current housing market upturn will be short-lived.” Stephens is convinced that mortgage rates will eventually rise significantly, probably in the early 2020s. “And, at that point, we expect the housing market…

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1 min
new funding model a winner

Housing Minister Phil Twyford and Auckland Mayor Phil Goff recently announced a partnership to fund $91 million of roading and wastewater infrastructure for a new 9,000 house development north of Auckland. While the partnership is between Auckland Council, Crown Infrastructure Partners and Fulton Hogan Land Development, part of the funding will come from property owners in the development who will pay an extra rate of between $650 and $1,000 per year for their infrastructure. Twyford says the funding model is an innovative approach to financing infrastructure and can be used in other high growth areas to help more houses to be built more quickly. The NZ Initiative executive director Oliver Hartwich agrees, saying the funding model is praiseworthy and there are some major advantages to the scheme. One critical advantage is that it…

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7 min
market jigsaw

Getting to grips with the housing market is a matter of looking at a range of different information and then putting it all together, much like a jigsaw. Sales activity, price growth, buyer types: they are all critical pieces in the puzzle. That’s something most people are aware of, but sometimes an objective expert can throw new light on a mix of well-worn data. At the recent TMM Better Business conference, CoreLogic head of research Nick Goodall did just that in a wide-ranging address. In this month’s commentary, we report on Goodall’s presentation and examine the pieces of the puzzle he used to present his picture of the housing market at this point in time. SALES BOTTOMING OUT The turbulent trajectory of sales activity was the first piece up. It’s well known that over…

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