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NZ Property Investor Sept 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
challenge the issues

Recently I was involved in a NZ Property Investors’ Federation (NZPIF) meeting which covered off the challenges that lie ahead. The Federation has been active on many fronts recently, but one I wanted to highlight was its role with the issue of unlawful properties. This is where tenants had their rent refunded if they found a property had unconsented alterations. NZPIF went into bat for landlords and sought legal advice to help. Because of its willingness to spend money the decision was overturned. The Federation has also spent money commissioning a report to correct some of the misinformation put out by the Michael Cullen-led Tax Working Group. The group, incorrectly, claimed property investment was under-taxed. However, its assumptions and modelling were wrong. To fix this NZPIF commissioned a report showing the correct situation. This, we…

1 min
mortgage rates will fall

I In its most recent Monetary Policy Statement, the Reserve Bank issued a cautious note on the economy, forecasting the OCR would not rise until 2020 at the earliest. The bank has also repeatedly refused to rule out a cut and this has lead economists to change their forecasts. Westpac chief economist Dominick Stephens says he now expects mortgage rates to fall. Financial markets reacted to the Reserve Bank’s statements by slashing wholesale fixed interest rates, he says. “That could cause a drop in two-year fixed mortgage rates of around a fifth of a percentage point over the coming few months. “A drop in mortgage rates of that magnitude, if it comes to pass, will have a powerful effect on the housing market.” But he adds that the Reserve Bank won’t be able to hold interest…

2 min
tribunal lays down heating law

Two recent Tenancy Tribunal decisions have awarded tenants exemplary damages for their landlords’ failure to provide an approved form of heating. In both cases, the Tribunal cited the Housing Improvement Regulations 1947 (HIR), saying they mean an approved form of heating must be provided and that failure to comply with this is an unlawful act. In one case, the Tribunal notes the definition of “approved form of heating” may differ between councils, but “it is more than supplying a plug in the lounge for something to be connected to”. Auckland Property Investors’ Association president Andrew Bruce says this seems to be a new interpretation of the regulations and he hasn’t heard it before. While MBIE is set to release a consultation paper on the upcoming minimum standards (including heating sources) shortly, no one knows…

1 min
product certification concerns

MBIE recently suspended six aluminium composite panel (ACP) CodeMark certificates. They were for combustible cladding similar to that found in the Grenfell Tower fire in London which killed 72 people. National Party Building and Construction spokesperson Andrew Bayly says the suspension is a good decision, but raises questions over the integrity of the CodeMark system. It also raises issues around Brisbane-based CertMark, which issued the ACP certification in question and also prepares about 50% of all new product certifications for New Zealand, he says. These issues include the competency of the bodies issuing the certificates; how that competency is assessed and monitored; and whether they had sufficient New Zealand expertise. Another issue with certain Codemark certificates is that they lack clarity around how individual products can and should be used alongside other products. Bayley says…

7 min
all quiet on the nz front

‘We desperately need to increase the supply of new houses – be that through KiwiBuild or from private developers and builders – in order to fill the significant shortage of properties around the country’ BINDI NORWELL Predictions of housing market doom – or at least significant price slumps – have been doing the rounds again in recent weeks. This was prompted, initially, by the June quarter data from Australia which showed house prices had dropped for the first time in six years. There was immediate speculation that New Zealand’s housing market could be at risk of “contagion” from a marked slowdown in the Australian market. Reserve Bank Governor Adrian Orr then added fuel to the fire when he said house prices could fall by 10 to 15% here as they could in…

1 min
what’s driving house prices?

REINZ HOUSE SALES: DOWN Once seasonally adjusted, sales volumes were down nationally in July as compared to June . They were also down slightly year-on-year . Sales activity was down month-on-month and year-on-year in both Auckland and Wellington . INTEREST RATES: DOWN Interest rates remain low and banks are still battling it out with cuts to short-term rates, but commentators are now speculating that lower interest rates are set to stay around for longer than previously thought . OCR: DOWN The Reserve Bank left the OCR on hold at the record low of 1 .75% in August and Reserve Bank Governor Adrian Orr says it is now likely to stay on hold until 2020 . IMMIGRATION: DOWN Monthly net migration dropped in June as compared to May . Annual net migration was down in June for the…