NZ Property Investor No 144 Nov 2015

GET CREATIVE HELLO! FIRSTLY, I 'D LIKE to thank all of the readers and investors I have met in my first month as editor here at NZ Property Investor for being so welcoming and willing to share their stories. At the recent New Zealand Property Investors' Federation (NZPIF) 2015 Annual Investors' Conference in Auckland, I met so many inspiring individuals and heard a number of interesting speakers talk about some truly fascinating areas of property investment. One such speaker, New Zealand-born and USA-based Dr Dolf de Roos (profiled on p26) – who many of you may know – has an interesting message for New Zealand investors: we need to look at other ways of doing things, other ways of property investing. “Despite our innovation here we are lagging behind,” he…

IN A RISING PROPERTY MARKET ONE of the key financial indicators for investors to monitor is the yield on their investment properties. This month we introduce new Rental Returns statistics in the back section of this magazine which can help you do just that. Following a request from a subscriber some months ago, we have been working with CoreLogic to develop our rental statistics to include gross yield. The tables also show comparative figures for the previous year and five years earlier to build a picture of how yields are changing over time. What is yield? First, a few basics on calculating yield. The gross rental yield is the annual rental income divided by the value. This gives you a basic idea of the return you can expect to get…

GORE RESIDENT ANGELA STRANG took home the 2015 Landlord of the Year award on October 18 at the annual NZ Property Investors’ Federation conference held in Auckland at the Crowne Plaza. A Southland Property Investors’ Association member, she says she was “a bit stunned” when presented with the prestigious award. The Landlord of the Year Award has been sponsored by the Ministry of Business, Innovation and Employment (MBIE) since its inception in 2008, and 2015 judge MBIE senior advisor, business development Hagen Tautari says the calibre of entrants was very high this year. “I was impressed by the calibre and the level of knowledge of all of the applicants,” he says. “Generally the landlords that stood out were the landlords who had an empathy for the tenant.” In her application…

PROPERTY INVESTORS HAVE, FOR NOW, avoided additional government regulations thanks to an unusual intervention by Parliament’s Speaker. Labour leader Andrew Little was successful in having his Private Members’ Bill drawn in a ballot last month. The bill was the opposition’s latest attempt to push legislation for minimum standards on rental properties. In an unusual move, Parliament’s speaker, David Carter, ruled the bill ineligible. Carter says the purpose and effect of the Healthy Homes Guarantee Bill (No 2), is substantially the same as the party’s Healthy Homes Guarantee Bill, which failed in March. He says Parliamentary rules provide that a bill that is the same in substance as a bill that received or was defeated on its first, second, or third reading may not be proposed. “In my opinion, this bill…

THE NZ PROPERTY INVESTORS Federation (NZPIF) are seeking clarification from the Inland Revenue Department (IRD) on the tax deductibility of installing insulation, now that it will be compulsory. The Minister of Building and Housing, Nick Smith, announced in July that the Residential Tenancies Act would be changed making it compulsory for rental houses to be insulated from July 2019. NZPIF executive officer Andrew King says the cost of installing insulation should be a revenue item not a capital one. “In the past, we have been told it is a capital expense so it can’t be written off as revenue. “But it is compulsory to install it and if you don’t undertake the work, then you can’t rent out the property, so you can’t make rental income on it. “Therefore we…

Our fans discussed the Residential Tenancies Act, we suggested the balance of rights between tenants and landlords is about right. YOUR COMMENTS Christopher Nishan Perera: The reason rentals don't get treated as well is the same reason rental cars gets driven harder. Some people just don't take care of things unless they own them. Nancy Caiger: Tenants who want security go for a fixed term tenancy. Many won't. After 22 years in this business my experience is that tenants move on their own accord most of the time. I can never figure out this need to move. Joe Kumar: Tenants got more rights than landlords and lots of time landlords end up suffering the cost. What are your thoughts on being nice to tenants? Do you have any tips for…