NZ Property Investor No 141 Aug 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

3 min
who should you believe?

“IT WAS THE BEST OF TIMES, IT WAS the worst of times” Written in 1859 the opening line from A Tale of Two Cities perfectly depicts the contradictions of a rampant Auckland property market. For vendors obtaining windfall prices for their properties, the hot market is akin to winning Lotto. Especially if they take their gains and transfer out of the SuperCity. For purchasers, particularly first-home buyers, the compulsion to leap aboard the runaway property train is seeing some committing to oppressive levels of debt that could turn the joy of home ownership into a life sentence of struggling to meet repayments on a massive mortgage. Somewhere in between seasoned investors, having ridden the property cycle through a few revolutions, will be tweaking their portfolios. Banking capital gains where yields have dived below their…

3 min
man from manawatu has suggestion for auckland.

THANKS FOR YOUR EDITORIAL PIECE IN THE JUNE NZ Property Investor Magazine. Well put and I wholeheartedly agree with your proposal regarding corporates relocating suitable parts to the provinces. Here are a few random thoughts from my experience and observations. 1 A couple of years ago the National-led government removed the [tax] deductibility of building depreciation. Maybe this was just throwing something to that group of people who think that property investors are given too much in the way of tax concessions, but here's a thought. I read somewhere along the line a Labour government set up the various deductions allowed to rental property owners. The purpose was to encourage the private sector to provide housing for those who could not afford to purchase their own house. After all, it was…

2 min
stat chat: greater than, less than, equal to

IN MAY 2013, THE MINISTER OF Finance and the Reserve Bank signed a Memorandum of Understanding outlining the purpose of macro-prudential policy, the range of policy instruments, and governance arrangements relating to their possible deployment. The four macro-prudential tools the Reserve Bank can use to help reduce risks to the financial system during boom-bust financial cycles are: › the countercyclical capital buffer (CCB) ›adjustments to the minimum core funding ratio (CFR) ›sectoral capital requirements (SCR) ›restrictions on high loan-to-value ratio (LVR) residential mortgage lending. These tools are supplementary to existing regulation of banks already carried out by the Reserve Bank. The rules imposed in 2013 meant only 10% of bank lending could be on high LVR loans (over 80% LVR). The new rules to take effect from October 2015 are squarely aimed at investors in the Auckland…

1 min
take note of rta changes: nzpif

LANDLORDS MAY HAVE BEEN spared a rental property Warrant of Fitness (WOF), but policies to encourage them to smarten up their act are still significant. The NZ Property Investors’ Federation has warned that the impending changes to the Residential Tenancies Act include some stiffer penalties for landlords. Hidden among the more widely reported changes – including the requirement for landlords to install insulation and smoke alarms in their rental properties – there are proposals to: › Increase the consequences for retaliatory action taken by a landlord in response to a tenant’s request for repair work. › Give the Ministry of Business, Innovation & Employment greater powers to prosecute landlords who provide substandard rental property › Lower the standard for convicting landlords who breach a work order, so that a “breach without reasonable excuse” is an…

1 min
our top facebook posts & comments

We shared a story about the new law requiring insulation and smoke alarms in all rentals by mid 2019. This is what our fans had to say: YOUR COMMENTS Royce Nordlof: Most of our insulation all done. Only 3 to worry about. Smoke alarms already supplied. Biggest problem is tenants taking them down and not informing us of problems. Eg flat batteries. Jade Wallace: I don't actually see the issue with this and I am also a landlord. Smoke alarms and effective insulation should be a priority for all home owners anyway be it an owner occupied property or a rental property. There is no way I would expect my tenants to freeze their arses off and there's no way I'd provide substandard housing. If I don't take care of the property how…

1 min
landlords briefs

NEW LAW MEANS INSULATION, SMOKE ALARMS REQUIRED IN RENTALS Building and Housing Minister Nick Smith announced that the Residential Tenancies Act will be strengthened with new requirements for insulation and smoke alarms and better enforcement of those requirements. The new law will require retrofitting of ceiling and underfloor insulation in rental homes over the next four years. NEW PROPERTY TAX RULES MOVE A STEP CLOSER The Taxation (Land Information and Offshore Persons Information) Bill has been introduced into Parliament. It contains two of the Budget-announced proposals aimed at helping the IRD to better enforce property tax rules. Revenue Minister Todd McClay said the measures will provide extra information which will help Inland Revenue detect people seeking to avoid their tax obligations. For more news, visit…