Property Investor News
June 2017
Property Investor News Courtesy of Buy West Property Management Ltd APIA issues sub-let warning ”Slumlord” crackdown could lead to good landlords being forced to refund rent to tenants who covertly sub-let illegal spaces, the Auckland Property Investors Association (APIA) is warning. By Miriam Bell The new Residential Tenancies Amendment Bill (No. 2) will give the Tenancy Tribunal the power to order a landlord to pay back rent received for a period where a property is deemed to be unlawful, according to APIA. This could lead to a situation whereby a landlord is ordered to repay rent for a property that was sub-let without their knowledge. APIA president Andrew Bruce said the association wants to make sure that any law change does not capture rental sub-letting situations that occur without the landlords knowledge. “For instance, if a tenant uses or sublets a garage as a bedroom without the landlord knowing, would the bill then
give the tenant the ability to bring about a claim against the landlord for unlawful premises? "That does not seem equitable to me." Sub-letting is common in New Zealand and APIA is generally supportive of tenants using sub-letting as a way to supplement their rental payments. Theoretically, sub-letting is only permissible currently if the tenancy agreement allows it and the tenant has obtained the landlord’s consent. But the growing use of vans in back yards and sheds as extra bedrooms is a disturbing practice, Bruce said. “The days of laissez-faire landlording are over. Not only are tenants putting sub-tenants into unhealthy and unsafe living environment, the legal ramification on landlords could be severe.” This means that landlords shouldn’t neglect their properties for a long period of time - rather they should conduct regular inspections.
Bruce said that by maintaining a regular presence landlords will have a better handle as to their tenant’s activities and can address potential issues early on. Additionally, APIA recommends that landlords only consent to sub-letting if they are satisfied the sub-tenant will be occupying a bedroom inside the house and not an outside space like a shed. They should also be able to retain reasonable oversight of the property to ensure the health and safety of all the tenants. Source: landlords.co.nz
Wednesday 5th July 2017—5.30—7.30pm. RSVP by 23/06/17 to: [email protected] or online at: buywestpropertymanagement.co.nz/landlordsinvestors/landlord-event-2017
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
CALL US TODAY
09 8342850
TWO AND FOUR = EIGHT
An update from Renovation loans explained
From small DIY fix-ups through to major re-construction projects, renovations can be a great way to add value to your home. There are a number of finance options available to renovators, so it’s important to understand which type is best suited to your circumstances. $ By Neg Home Equity Loan If you’re planning substantial renovations, a home equity loan might be worth exploring. This in2 & 4 Sherwood Ave, Te Atatu South volves refinancing your existing home loan to release some of its equity, which can then be used 2 & 4 Sherwood Avenue come together to to finance your renovation. To be eligible, your existing lending will need to be less than 80% of create a 1624m2 (more or less) site with the value of the property, and you’ll need to be able to prove you’re in a financial position to serready to build plans for 8 Homes. vice the loan. Contact: Valmiki Iyer Refinancing Mobile: 021 441 690 Refinancing your mortgage will let you borrow additional funds to put towards your renovation. Email: [email protected] With interest rates currently low, this may be an affordable option. However, refinancing is essenContact: Paige Parker tially the same as taking out a new home loan, so it’s important you shop around for the best Mobile: 021 151 2769 rates. A mortgage adviser can help you to do this. Email: [email protected] Construction Loans If structural changes are being made, homeowners can apply for a construction loan, which will be PRICE REDUCED TO SELL based on the post-renovation value of your property. This type of loan allows you to draw funds progressively throughout the renovation period, but does require planning permission. Lenders will need to see a fixed-price building contract with plans and specifications for the build before a loan can be approved. Personal Loans If you’re undertaking a small renovation, then a personal loan might be a good option. Bear in mind, however, that interest rates can be high, so this type of loan may only make financial sense $965,000 if the amount you are looking to borrow is relatively small. Credit Cards and Overdrafts 74 Farquhar Road, Glendene Credit cards and overdrafts can be easy to get, but need to be carefully managed to avoid high This solid Home & Income provides a rare interest rate charges. Most banks can approve your funds on the spot or online, but it’s important opportunity to own your own cash cow. North facing and set on 809m2 you have two lovely to shop around for the lowest rates. Try to find an Rental Market Trends—Real Estate option that offers an interest free period, and pay off homes. the full balance before the due date. Remember, if No. Of Contact: Michael Thompson Median Price No. Of Lets you’re borrowing a lot of money and you’re not in a Rooms Mobile: 027 763 9663 Email: [email protected] position to pay it back quickly, your renovation could West Auckland—Te Atatu Peninsula Contact: Andy Roche end up being more expensive than you had initially 2 $420 21 Mobile: 022 000 9392 planned. Email:
[email protected]
Sales Market Trends—Real Estate Median house price year-onyear Seasonally adjusted median house price Month-onmonth median house price
$525
92
4
$650
26
West Auckland—Te Atatu South
National National ex Auckland Auckland National Auckland
$540,000 - up from $506,100 +6.7% year-on-year $430,000 - up from $386,500 +11.3% year-on-year $865,500 - up from $824,000 +5.0% year-on-year Up 0.1% on April, up 6.2% on May 2016 Up 0.6% on April, up 4.4% on May 2016
National National ex Auckland Auckland
$540,000 – same as April $430,000 – down 1.1% on April: $435,000 $865,000 – up 1.6% on April: $854,500
Median days to National sell Auckland
3
37 – five days longer compared to May 2016 40 – eight days longer compared to May 2016
1
$280
6
2
$420
24
3
$500
57
4
$580
13
West Auckland—Henderson 2
$420
66
3
$490
230
4
$580
78
5+
$715
32
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
CALL US TODAY
09 8342850
Property Investor News Courtesy of Buy West Property Management Ltd APIA issues sub-let warning ”Slumlord” crackdown could lead to good landlords being forced to refund rent to tenants who covertly sub-let illegal spaces, the Auckland Property Investors Association (APIA) is warning. By Miriam Bell The new Residential Tenancies Amendment Bill (No. 2) will give the Tenancy Tribunal the power to order a landlord to pay back rent received for a period where a property is deemed to be unlawful, according to APIA. This could lead to a situation whereby a landlord is ordered to repay rent for a property that was sub-let without their knowledge. APIA president Andrew Bruce said the association wants to make sure that any law change does not capture rental sub-letting situations that occur without the landlords knowledge. “For instance, if a tenant uses or sublets a garage as a bedroom without the landlord knowing, would the bill then
give the tenant the ability to bring about a claim against the landlord for unlawful premises? "That does not seem equitable to me." Sub-letting is common in New Zealand and APIA is generally supportive of tenants using sub-letting as a way to supplement their rental payments. Theoretically, sub-letting is only permissible currently if the tenancy agreement allows it and the tenant has obtained the landlord’s consent. But the growing use of vans in back yards and sheds as extra bedrooms is a disturbing practice, Bruce said. “The days of laissez-faire landlording are over. Not only are tenants putting sub-tenants into unhealthy and unsafe living environment, the legal ramification on landlords could be severe.” This means that landlords shouldn’t neglect their properties for a long period of time - rather they should conduct regular inspections.
Bruce said that by maintaining a regular presence landlords will have a better handle as to their tenant’s activities and can address potential issues early on. Additionally, APIA recommends that landlords only consent to sub-letting if they are satisfied the sub-tenant will be occupying a bedroom inside the house and not an outside space like a shed. They should also be able to retain reasonable oversight of the property to ensure the health and safety of all the tenants. Source: landlords.co.nz
Wednesday 5th July 2017—5.30—7.30pm. RSVP by 23/06/17 to: [email protected] or online at: buywestpropertymanagement.co.nz/landlordsinvestors/landlord-event-2017
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
CALL US TODAY
09 8342850
TWO AND FOUR = EIGHT
An update from Renovation loans explained
From small DIY fix-ups through to major re-construction projects, renovations can be a great way to add value to your home. There are a number of finance options available to renovators, so it’s important to understand which type is best suited to your circumstances. $ By Neg Home Equity Loan If you’re planning substantial renovations, a home equity loan might be worth exploring. This in2 & 4 Sherwood Ave, Te Atatu South volves refinancing your existing home loan to release some of its equity, which can then be used 2 & 4 Sherwood Avenue come together to to finance your renovation. To be eligible, your existing lending will need to be less than 80% of create a 1624m2 (more or less) site with the value of the property, and you’ll need to be able to prove you’re in a financial position to serready to build plans for 8 Homes. vice the loan. Contact: Valmiki Iyer Refinancing Mobile: 021 441 690 Refinancing your mortgage will let you borrow additional funds to put towards your renovation. Email: [email protected] With interest rates currently low, this may be an affordable option. However, refinancing is essenContact: Paige Parker tially the same as taking out a new home loan, so it’s important you shop around for the best Mobile: 021 151 2769 rates. A mortgage adviser can help you to do this. Email: [email protected] Construction Loans If structural changes are being made, homeowners can apply for a construction loan, which will be PRICE REDUCED TO SELL based on the post-renovation value of your property. This type of loan allows you to draw funds progressively throughout the renovation period, but does require planning permission. Lenders will need to see a fixed-price building contract with plans and specifications for the build before a loan can be approved. Personal Loans If you’re undertaking a small renovation, then a personal loan might be a good option. Bear in mind, however, that interest rates can be high, so this type of loan may only make financial sense $965,000 if the amount you are looking to borrow is relatively small. Credit Cards and Overdrafts 74 Farquhar Road, Glendene Credit cards and overdrafts can be easy to get, but need to be carefully managed to avoid high This solid Home & Income provides a rare interest rate charges. Most banks can approve your funds on the spot or online, but it’s important opportunity to own your own cash cow. North facing and set on 809m2 you have two lovely to shop around for the lowest rates. Try to find an Rental Market Trends—Real Estate option that offers an interest free period, and pay off homes. the full balance before the due date. Remember, if No. Of Contact: Michael Thompson Median Price No. Of Lets you’re borrowing a lot of money and you’re not in a Rooms Mobile: 027 763 9663 Email: [email protected] position to pay it back quickly, your renovation could West Auckland—Te Atatu Peninsula Contact: Andy Roche end up being more expensive than you had initially 2 $420 21 Mobile: 022 000 9392 planned. Email:
[email protected]
Sales Market Trends—Real Estate Median house price year-onyear Seasonally adjusted median house price Month-onmonth median house price
$525
92
4
$650
26
West Auckland—Te Atatu South
National National ex Auckland Auckland National Auckland
$540,000 - up from $506,100 +6.7% year-on-year $430,000 - up from $386,500 +11.3% year-on-year $865,500 - up from $824,000 +5.0% year-on-year Up 0.1% on April, up 6.2% on May 2016 Up 0.6% on April, up 4.4% on May 2016
National National ex Auckland Auckland
$540,000 – same as April $430,000 – down 1.1% on April: $435,000 $865,000 – up 1.6% on April: $854,500
Median days to National sell Auckland
3
37 – five days longer compared to May 2016 40 – eight days longer compared to May 2016
1
$280
6
2
$420
24
3
$500
57
4
$580
13
West Auckland—Henderson 2
$420
66
3
$490
230
4
$580
78
5+
$715
32
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
CALL US TODAY
09 8342850
