Property Investor
August 2017
Property Investor
Courtesy of Buy West Property Management
RTA amendments over first hurdle. Law changes on the tenant damage liability and meth contamination front are moving closer with the Residential Tenancies Amendment Bill (No 2) passing its first reading in Parliament. The Bill is intended to ensure that tenancy laws better manage meth contamination, liability for careless damage and the tenancy of unsuitable properties. Building and Construction Minister Nick Smith said the Bill recognises that meth contamination of properties has become a significant issue that needs clearer direction. “We want homes to be safe but we also don’t want properties being vacated when the risks are low.” If the Bill passes into law, landlords will have easier access to properties to test for meth while tenants will be able to terminate their tenancy if meth presents at unsafe levels. It enables the contamination thresholds and competency requirements in the new meth testing and remediation standard, which was released last week,
CALL US TODAY
09 8342850
to be legally recognised and enforceable before the Tenancy Tribunal. The Bill also addresses tenant liability for careless damage – which has become an issue in the wake of the controversial Court of Appeal Osaki decision last year. It provides that tenants will be liable for the cost of their landlord’s insurance excess up to a maximum of four weeks’ rent for each incident of damage caused by carelessness. A tenant will be fully liable where the damage is deliberate or a criminal act, while the landlord will be liable for fair wear and tear and damage beyond the control of the tenant, like a natural disaster. Smith said it will ensure landlords are not left out of pocket for tenant damage to rental properties
and that tenants have an incentive to take good care of rental properties, while encouraging cost effective insurance arrangements. Additionally, the Bill strengthens the law for prosecuting landlords who tenant unsuitable properties to include those who rent out unlawfully converted garages, warehouses or industrial buildings as living spaces. The RTA Bill (No 2), which builds on the tenancy law changes made last year, is now being considered by the Local Government and Environment Select Committee. Source: landlords.co.nz
A message from Natalie Hachache… A reminder that all rental properties must be insulated by 1st July 2019. We have spoken to several insulation companies and they tell us they anticipate being very busy in 2018, so if your rental properties are not insulated or are below the new standards for insulation, now is a good time to think about getting it done before the big rush. There are still some funded schemes where landlords can get discounts on insulation installed if they meet the criteria. For more information visit www.tenancy.govt.nz and search “insulation”.
Natalie Hachache—General Manager Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
An update from First Home Buyers—Must View!
“Bubble talk” and how to be prepared With house prices surging around the world, It’s been predicted by some that New Zealand’s housing bubble will burst. Back in 2014, Forbes reported the country’s property market was the third most overvalued in the world. More recently, the Reserve Bank of New Zealand announced that over the past eight months house price growth has slowed down. And Goldman Sachs have forecast a 40% chance of the bubble bursting within the next two years.
For Sale 10 Winery Way, Henderson
While it can be worrisome to anticipate, if the bubble does burst, there are steps you can take now to be prepared. The stability of the market is out of your hands, but there are direct actions you can take to soften the potential blow.
Calling Landlords and first home buyers, we have on offer this trendy 3 bedroom Townhouse with 2 bathrooms, open plan living which flows out onto a sunny and sec
If you’re looking to buy property, first ensure you can afford it. It might sound obvious, but it’s easy to get in over your head and buy something more extravagant than you need. Rather than buying purely with investment in mind, think long-term and look for a place you’ll be happy to call home.
Contact: Margaret Anne Moore Mobile: 027 498 8330 Email: [email protected]
Paying off your mortgage as soon as you can should be a top priority. Hopefully you’ve been making your regular loan payments, and if you can increase them, now is the time to do so. It may also be worthwhile trying to renegotiate the terms of the loan with your lender.
Spacious Brick and Tile
Reviewing your loan on a regular basis with your adviser will help you determine if you need to alter your loan structure or see whether they can put you on to a better rate or term to maximise your ability to pay it off quicker, rather than rolling it over on say a 2 year fixed rate every time it comes due. With this focus on saving, you’ll want to cut back on any unnecessary expenditure. When if a bubble bursts, there can be instability in the job market. To reduce this stress, get on top of your finances as early as possible. Keep to a budget and be smart with your money. Be conservative with your earnings and plan for the future.
For Sale 7 Northridge Terrace, Massey If it's a large family home you are after in a newer subdivision, surrounded by similar quality homes at an affordable price, look no further. This spacious, fabulous flowing 5 large bedroom home is perfect for the entire family. Contact: Ronald Hachache Mobile: 021 264 5965 Email: [email protected]
And finally, holding realistic expectations around how much your home will be worth in the future will keep you on track. The increase in value you might have originally envisaged might not come into fruition in the current market. While that can be disheartening, expecting to receive much more than you initially paid for your property will set you up for disappointment. Rental Market Trends—Real Estate Whether the bubble bursts in two months, two years or two decades, being aware of what you No. Of can do in this scenario will help you be more No. Of Bed- Median resilient and adaptable for a strong future. Also rooms Price Properties remember if the market does go down it will Let usually always go up again in the future, so havWest Auckland—Te Atatu Peninsula ing the courage to hold on to property during a downturn will mean you won’t realise a loss and 2 $430 27 will reap the benefits when the market rebounds as it did after the Global Financial Crisis. 3 $520 89
Sales Market Trends—Real Estate Median house price year-onyear
National National ex Auckland Auckland
$518,000—up from $501,00 + 3.4 % Year-on-Year $415,838—up from $392,000 + 6.1% Year-on-Year $830,000—up from $840,000—1.2 % Year-on-Year
Seasonally adjusted median house price
National Auckland
Down 1.2% , up 3.3% on July 2016 Down 1.3%, down 0.8% on July 2016
Month-onmonth median house price
National National ex Auckland Auckland
$518,000—down from $530,000—2.3% since last month
National Auckland
Median days to sell
CALL US TODAY
09 8342850
4
$675
21
West Auckland—Te Atatu South 1
$330
5
2
$420
25
3
$500
61
4
$590
10
West Auckland—Henderson
$415,838—down from $430,000—3.3% since last month
2
$420
65
$830,000—down from $850,000—2.4% since last month
3
$490
240
35– 4 days longer than same month last year
4
$590
78
37—6 days longer than same month last year
5+
$727
30
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
Property Investor
Courtesy of Buy West Property Management
RTA amendments over first hurdle. Law changes on the tenant damage liability and meth contamination front are moving closer with the Residential Tenancies Amendment Bill (No 2) passing its first reading in Parliament. The Bill is intended to ensure that tenancy laws better manage meth contamination, liability for careless damage and the tenancy of unsuitable properties. Building and Construction Minister Nick Smith said the Bill recognises that meth contamination of properties has become a significant issue that needs clearer direction. “We want homes to be safe but we also don’t want properties being vacated when the risks are low.” If the Bill passes into law, landlords will have easier access to properties to test for meth while tenants will be able to terminate their tenancy if meth presents at unsafe levels. It enables the contamination thresholds and competency requirements in the new meth testing and remediation standard, which was released last week,
CALL US TODAY
09 8342850
to be legally recognised and enforceable before the Tenancy Tribunal. The Bill also addresses tenant liability for careless damage – which has become an issue in the wake of the controversial Court of Appeal Osaki decision last year. It provides that tenants will be liable for the cost of their landlord’s insurance excess up to a maximum of four weeks’ rent for each incident of damage caused by carelessness. A tenant will be fully liable where the damage is deliberate or a criminal act, while the landlord will be liable for fair wear and tear and damage beyond the control of the tenant, like a natural disaster. Smith said it will ensure landlords are not left out of pocket for tenant damage to rental properties
and that tenants have an incentive to take good care of rental properties, while encouraging cost effective insurance arrangements. Additionally, the Bill strengthens the law for prosecuting landlords who tenant unsuitable properties to include those who rent out unlawfully converted garages, warehouses or industrial buildings as living spaces. The RTA Bill (No 2), which builds on the tenancy law changes made last year, is now being considered by the Local Government and Environment Select Committee. Source: landlords.co.nz
A message from Natalie Hachache… A reminder that all rental properties must be insulated by 1st July 2019. We have spoken to several insulation companies and they tell us they anticipate being very busy in 2018, so if your rental properties are not insulated or are below the new standards for insulation, now is a good time to think about getting it done before the big rush. There are still some funded schemes where landlords can get discounts on insulation installed if they meet the criteria. For more information visit www.tenancy.govt.nz and search “insulation”.
Natalie Hachache—General Manager Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
An update from First Home Buyers—Must View!
“Bubble talk” and how to be prepared With house prices surging around the world, It’s been predicted by some that New Zealand’s housing bubble will burst. Back in 2014, Forbes reported the country’s property market was the third most overvalued in the world. More recently, the Reserve Bank of New Zealand announced that over the past eight months house price growth has slowed down. And Goldman Sachs have forecast a 40% chance of the bubble bursting within the next two years.
For Sale 10 Winery Way, Henderson
While it can be worrisome to anticipate, if the bubble does burst, there are steps you can take now to be prepared. The stability of the market is out of your hands, but there are direct actions you can take to soften the potential blow.
Calling Landlords and first home buyers, we have on offer this trendy 3 bedroom Townhouse with 2 bathrooms, open plan living which flows out onto a sunny and sec
If you’re looking to buy property, first ensure you can afford it. It might sound obvious, but it’s easy to get in over your head and buy something more extravagant than you need. Rather than buying purely with investment in mind, think long-term and look for a place you’ll be happy to call home.
Contact: Margaret Anne Moore Mobile: 027 498 8330 Email: [email protected]
Paying off your mortgage as soon as you can should be a top priority. Hopefully you’ve been making your regular loan payments, and if you can increase them, now is the time to do so. It may also be worthwhile trying to renegotiate the terms of the loan with your lender.
Spacious Brick and Tile
Reviewing your loan on a regular basis with your adviser will help you determine if you need to alter your loan structure or see whether they can put you on to a better rate or term to maximise your ability to pay it off quicker, rather than rolling it over on say a 2 year fixed rate every time it comes due. With this focus on saving, you’ll want to cut back on any unnecessary expenditure. When if a bubble bursts, there can be instability in the job market. To reduce this stress, get on top of your finances as early as possible. Keep to a budget and be smart with your money. Be conservative with your earnings and plan for the future.
For Sale 7 Northridge Terrace, Massey If it's a large family home you are after in a newer subdivision, surrounded by similar quality homes at an affordable price, look no further. This spacious, fabulous flowing 5 large bedroom home is perfect for the entire family. Contact: Ronald Hachache Mobile: 021 264 5965 Email: [email protected]
And finally, holding realistic expectations around how much your home will be worth in the future will keep you on track. The increase in value you might have originally envisaged might not come into fruition in the current market. While that can be disheartening, expecting to receive much more than you initially paid for your property will set you up for disappointment. Rental Market Trends—Real Estate Whether the bubble bursts in two months, two years or two decades, being aware of what you No. Of can do in this scenario will help you be more No. Of Bed- Median resilient and adaptable for a strong future. Also rooms Price Properties remember if the market does go down it will Let usually always go up again in the future, so havWest Auckland—Te Atatu Peninsula ing the courage to hold on to property during a downturn will mean you won’t realise a loss and 2 $430 27 will reap the benefits when the market rebounds as it did after the Global Financial Crisis. 3 $520 89
Sales Market Trends—Real Estate Median house price year-onyear
National National ex Auckland Auckland
$518,000—up from $501,00 + 3.4 % Year-on-Year $415,838—up from $392,000 + 6.1% Year-on-Year $830,000—up from $840,000—1.2 % Year-on-Year
Seasonally adjusted median house price
National Auckland
Down 1.2% , up 3.3% on July 2016 Down 1.3%, down 0.8% on July 2016
Month-onmonth median house price
National National ex Auckland Auckland
$518,000—down from $530,000—2.3% since last month
National Auckland
Median days to sell
CALL US TODAY
09 8342850
4
$675
21
West Auckland—Te Atatu South 1
$330
5
2
$420
25
3
$500
61
4
$590
10
West Auckland—Henderson
$415,838—down from $430,000—3.3% since last month
2
$420
65
$830,000—down from $850,000—2.4% since last month
3
$490
240
35– 4 days longer than same month last year
4
$590
78
37—6 days longer than same month last year
5+
$727
30
Buy West Property Management Ltd [email protected] www.buywestpropertymanagement.co.nz
