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NZ Property Investor Nov 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
fight the good fight

Here at NZ Property Investor, we’ve long heard that the slew of government housing and tax policy changes, along with an anti-landlord climate, will lead to both rent rises and landlords selling up and getting out. Putting anecdotal and social media “evidence” aside, it’s hard to tell whether an exodus of landlords is getting underway. There was a healthy turn out at last month’s NZ Property Investors Federation conference – as can be seen in this issue’s conference round up. And recent CoreLogic data shows multiple property owners maintained their 24% share of the buying market in the last quarter. But many landlord advocates believe growing numbers of landlords are reassessing their options and don’t plan to buy more rental properties. That means rental stock won’t be replenished to the degree necessary. Yet many…

1 min
tenancy reforms biased

The “Stop the War on Tenancies” group is claiming that the owners of New Zealand’s 588,700 rental properties were not properly consulted with. Tenancies War spokesman Mike Butler says the Government had the ability to notify rental property owners of the proposals directly. That’s because Tenancy Services holds the contact details of every owner who has lodged a bond. “But the notification was limited to a few posts circulated around social media. Was the failure-to-notify a plot to minimise owner submissions and encourage feedback from tenants?” Anyone who spent the several hours required to complete the online questionnaire on the reforms would see that the proposals would make the Residential Tenancies Act even more steeply biased against owners, he says. “Further, some questions were so poorly phrased that a rational response was not possible.” Landlord Naveen…

1 min
airbnb profits for landlords

Back in May, the Tenancy Tribunal ordered a man who illegally sublet the central Wellington apartment he was renting on 54 occasions over six months in 2017, to pay his landlords his profits. But after costs were deducted, the amount he was ordered to hand over came to just $2,150 of the $13,695 profits he was estimated to have made. This prompted the landlord’s lawyer to appeal the case to the District Court and that court has now found in favour of the landlord. District Court Judge Chris Tuohy found the amount ordered by the Tribunal to be wrong. He said it was “self-evident that the Tribunal made errors in its calculations”. Judge Tuohy subtracted $6,107.30 off the Airbnb profits for rent paid and other expenses. But he ordered the tenant to pay the…

1 min
unconsented work in scope

After a 2013 High Court judgment was cited as authority in the now-notorious Vic Inglis case last year, landlords have had to face the prospect of full rent refunds to tenants. The Anderson v FM Custodians case determined that unconsented premises don’t meet the definition of “residential premises” under the Residential Tenancies Act (RTA). That meant they were regarded as “unlawful tenancies” and not within the jurisdiction of the Tribunal. This highlighted the uncertainty created by the FM Custodians ruling which has, reportedly, led to a number of full rent refunds to tenants in “unlawful tenancy” situations. But NZ Property Investors’ Federation executive officer Andrew King told NZPIF conference delegates that a new High Court ruling, which disagrees with the FM Custodians decision, means the situation is changing. “The judge in the new decision found…

1 min
tribunal adopts 15mcg standard

The Tribunal’s chief adjudicator, Melissa Poole, told delegates at the NZ Property Investors’ Federation conference that it will use the 15mg level as proposed in the Gluckman report. But that is only as long as the meth test was done after the report was released on May 28 this year. Poole says the Tribunal’s hand was forced by Housing New Zealand’s decision to use 15 as its standard shortly after the Gluckman report was released. “If you have the biggest player in town going with 15 as the standard it becomes very difficult for us to say to you guys you’re not Housing New Zealand so we are going to apply NZS (1.5) to you. It would effectively penalise private landlords.” But Poole says there are some important differences between the NZS standard of…

7 min
downbound trend

It has long been the topic du jour in this country. Be it round the dinner table or over a coffee, New Zealanders love talking about property and the ups and downs of the market. Even as the market has dropped off from the heady boom days of 2015/2016, it seems many are unwilling to relinquish the dramatic chatter. Recently, there have been some breathless reports that Auckland and Christchurch properties are selling, or valued, under their CVs. But here’s the thing: property markets move in cycles and New Zealand’s markets have passed their peak. While the cycles tend to be orderly, the recent peak saw spectacular growth and heated activity. That means the downbound part of the cycle was always likely to see some drop-off in over-valued sections of the market.…