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NZ Property Investor July 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.

New Zealand
NZ Property Investor Magazine Ltd
12 Issues

in this issue

2 min
game changers

‘It’s important to remember that last year’s meth standards still apply to all Tenancy Tribunal and insurer decisions’ Over the past month we’ve had two pieces of big news that will make a difference to how landlords run their portfolios. The first was the government-commissioned Gluckman Report on meth, which suggested lifting the acceptable level of meth residue in residential dwellings from 1.5 micrograms to 15 micrograms. The report was welcomed by many landlords who’d felt that the levels were overly conservative. Personally, it feels to me that another arbitrary number has been plucked from the air, and that the lack of evidence around effects from third hand exposure is a reason to do more investigating, rather than declare a level of 15.0 safe. For landlords, it’s important to remember that…

1 min
hard hitting airbnb changes

Auckland Mayor Phil Goff has announced that people renting accommodation via platforms like Airbnb or Bookabach will now have to pay the targeted accommodation rate, or “bed tax”, already levied on hotels and motels. The Council is also planning to apply higher commercial rates to properties that are let on short-term rental platforms for more than a certain number of nights a year, but Goff says the rate charged will vary. “If you are renting out a single room the tax won’t apply to you, but if you’re letting out your whole house or apartment then it will. “If it’s for less than four weeks you’re not covered, but if it’s over 180 days then you’ll be paying the full business rate, with gradations in between.” Airbnb spokesman Brent Thomas says the charges are…

2 min
cgt won’t reduce prices

Westpac has released an analysis of whether various property tax changes would have an impact on house prices and the bank’s conclusion is a resounding “yes”. The bank’s chief economist, Dominick Stephens, says that New Zealand’s property prices are profoundly affected by the tax system so changing this would change property prices. “Property is more lightly taxed than other forms of investment – mainly because income from investments is taxed, whereas capital gains are tax-free, plus expenses, including mortgage interest, are tax deductible.” “This feature of the tax system is especially useful for property investors, who find it easier to borrow against their investments than other businesses. It has made property investment incredibly popular. And that popularity has been one factor pushing house prices higher.” Westpac estimates that the introduction of a capital gains…

1 min
asbestos rules clarified

WorkSafe says it has received multiple enquiries from property owners and body corporates who have been advised by service providers that building surveys must now be completed. But while the Health and Safety at Work (Asbestos) Regulations 2016 do mean there are new rules for residential landlords, a building survey is only required if work is being done on the property. WorkSafe has released a policy clarification which details when residential landlords are required to identify asbestos and prepare an asbestos management plan. It says landlords must identify asbestos and document plans for managing its risks in an asbestos management plan, if there is a risk of exposure to respirable asbestos fibres from work being carried out. Exposure is likely to occur from dust created when drilling or cutting into asbestos-containing materials, so…

8 min
in moderate times

Times have changed for New Zealand’s housing market. Moderate growth and steady sales activity – with a touch of seasonal slowdown in the mix – are the name of the game. Across the board, the latest data shows the national propery market is in pretty solid, albeit unexciting, shape. QV’s May data records that, once adjusted for inflation, nationwide values were up by 5.8% year-on-year, but just 0.8% over the past quarter. This left the national average value at $677,996. In similar style, REINZ had May’s national median house price up by 4.5% year-on-year, and by 1.1% on April, once seasonally adjusted, to a new record of $562,000. But national sales activity in May, once seasonally adjusted, was up by just 1.8% year-on-year, and down by 1.8% on April. It’s all a far…

1 min
what’s driving house prices?

REINZ HOUSE SALES: UP Once seasonally adjusted, sales volumes were up nationally in May as compared to April – but they were down year-on-year. In Auckland, May sales volumes were up on the month earlier as well as year-on-year. INTEREST RATES: DOWN Interest rates remain low and banks have been battling it out with cuts to short-term rates of late. But it is expected rates will rise over the next year. OCR: DOWN The Reserve Bank left the OCR on hold at the record low of 1.75% in May and most commentators expect it to stay on hold until mid to late 2019. IMMIGRATION: DOWN Monthly net migration dropped in April as compared to March. Annual net migration was down in April for the third month in a row and commentators say the rate is easing. BUILDING CONSENTS:…