NZ Property Investor No 134 Jan 2015

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
welcome to 2015 – a year of possibilities

WELCOME TO 2015. Looking back, it’s been a positive year for property investment - once we got over the election blip and the fear of a possible capital gains tax. While prices continued to rise, particularly in Auckland and Christchurch, a lot of investors took the opportunity to buy more properties. And many new people became landlords through such factors as strong employment, healthy migration, benign interest rates and good rental demand. In this issue we look back at how the investors we profiled last year have fared since we last spoke to them. Most are in an optimistic mood and several have bought more property. But will 2015 be as good as last year? Will it be even better? Will rents start to rise? Maybe it’s time to start paying…

1 min
landlords briefs

COUNCIL REJECTS CRITICISM Auckland Council and QV have hit back at claims the recent Auckland revaluations are “wildly wrong” Property InDepth said many of the just-released capital valuations from Auckland Council were well out compared with sales in the city during October, 2014. “The magnitude of inconsistencies in the latest Auckland property revaluation is becoming glaringly obvious” they said. But Auckland Council chief financial officer Kevin Ramsay said there was no justification for that claim. He said it was misleading because council valuations are based on sales and data from before July. OYSTER TAKES DELICATE PUNT… Oyster Group is taking a punt that a likely termination date for its latest property syndicate will attract investors, despite the possibility of a capital gains tax. The new syndicate will have a set end date. For more news, visit…

1 min
call for compulsory smoke alarms in rentals

THE FIRE SERVICE SAYS LANDLORDS should be responsible for installing alarms in their properties and ensuring there is a maintenance schedule to regularly check their effectiveness. “There should be a long-life smoke alarm in every bedroom, in the hallway outside bedrooms and other living areas,” Fire Service Investigation Manager Peter Wilding says. “Even if one alarm fails for whatever reason, this level of protection helps provide early warning of fires that otherwise become deadly. “Most people underestimate the speed of fire. A fire can become unsurvivable in five minutes or less.” Wilding made the call after several people died in fires in rent properties. “The simple fact is that smoke alarms save lives. Most deaths in house fires can be prevented if there are working smoke alarms to alert people and give them time to escape. “Rarely…

1 min
net closes on property tax dodgers

THE NEW ZEALAND PROPERTY Investors’ Federation says the Inland Revenue Department’s strategy to track down property speculators is working. Revenue Minister Todd McClay said the IRD was taking a proactive strategy to locate those who tried to avoid paying tax. He said it was showing big dividends. McClay said the IRD had identified discrepancies, or differences between what taxes should have been paid and what actually was paid, of more than $195 million. Of that, $52.4 million was in the 12 months to June this year. IRD looked at property developers speculating in the residential market, particularly in Auckland and Queenstown. They visited 2500 industry and other interest groups to raise awareness of their tax-related responsibilities, and they monitored 26,000 properties and property-related issues. McClay said: “We take tax avoidance seriously. We spent $172 million…

1 min
investor cvs impact on rents

NEW AUCKLAND CVS WILL LEAD A FIFTH OF investors to increase the rents they charge on their properties, new research from Crockers shows. Crockers’ latest Property Investment Index has asked Auckland landlords about the new council valuations. It found that 44% had had a “quick look” at the impact on values in the suburbs in which they owned property. Another 15% had looked carefully and more than 40% had not looked at all. A third of investors expected their returns to decrease as a result of the new CVs and 40% expected no change in returns. Two-thirds of investors said the new CVs on their properties would not change their plans but 19% said they now planned to increase the rent they charged. Another 11% planned to sell because of the new valuations. The average…

1 min
renos nail profits

RENOVATIONS AND DO-UPS ARE a big trend in the housing market at the moment and hardware stores are booming. Bunnings has more than tripled annual profit in New Zealand in its past financial year. It reported a profit of $4.9 million in the year ended June 30 compared to $1.1 million in the previous year earlier. Sales rose 15% to $813 million. Rival hardware chain Mitre 10 posted a 10% gain in sales to $1.04 billion in the year ended June 30, exceeding $1 billion for the first time. The chain increased its distributions to members by 11% to $58 million. In August, listed construction and building products group Fletcher Building reported a lift in New Zealand distribution sales, which covers the PlaceMakers hardware stores and Mico Plumbing, by 2% to $1.17 billion and…