NZ Property Investor October 2019

Millennials: they’re a much-maligned generation when it comes to property. If they are not being presented as fixated on spending rather than saving, they’re portrayed as the generation who has been locked out of property ownership. So we have the stereotype of avocado-smash eating, social media obsessed millennials who are not able to buy homes, let alone invest in property. But after attending a series of property investment conferences where there was a high percentage of people who’d be categorised as millennials, it seemed to me the truth might be somewhat more complex. That’s because there was clearly significant millennial interest in property out there. After I did a bit of research into millennials and investing generally, it became apparent that reality is indeed different to the story that holds…

Historically low interest rates have been the focus since the Reserve Bank slashed the OCR to 1.0% in August, but the banks’ servicing tests remained tough – limiting access to loans. Now, that seems to be changing: Of late, there have been changes in servicing rates from ASB, ANZ and BNZ. Mortgage Supply Company’s David Windler says that each of these banks have reduced their rates from between 0.5% to 0.8%, which is good news for borrowers. This long overdue easing of credit will lead to increased borrowing capability for all applicants and it also puts the banks’ actual servicing rates more in line with the advertised rates, he says. “We still have many layers of obligations around not putting people into more debt than they can keep on top…

Ronovation Ltd, which trades as Ronovationz, agreed to the penalty as part of the settlement negotiations in proceedings that were filed back in July. The proceedings were initiated by the Commerce Commission which alleged that rules developed and used by the company between 2011 and 2018 amounted to cartel conduct in breach of the Commerce Act. The rules were intended to prevent Ronovationz members from competing for properties against each other, but the Commission said they had the effect of price fixing and bid rigging. Shortly after the Commission launched proceedings, the company admitted the wrongdoing and in a penalty hearing agreed to pay the Commission the recommended fine of $400,000 for the behaviour. In her judgment, Justice Sarah Katz said Ronovationz’s rules were deliberately anticompetitive and designed to suppress…

OCTOBER RENTING AND YOU SEMINARS October 8, Gisborne; October 22, Dunedin; October 23, Invercargill. 7pm. Seminars are free but you must register to attend, one registration per person. https://www.tenancy.govt.nz/about-tenancy-services/events/renting-and-you-seminar VIP SALES NIGHT October 29 Hosted by Property Ventures Real Estate Limited. 6.30-8pm, 77a Ponsonby Road, Auckland. Free to attend but limited seats (20 only) so you must register to attend. Book at vipsales@propertyventures.co.nz PROPERTY INVESTMENT AND EDUCATION SEMINAR October 30 Hosted by Gilligan Rowe & Associates. Free to attend. 6:45pm, Level 6, 135 Broadway, Newmarket, Auckland. For more information and to register: https://www.gra.co.nz/property-investment-seminars For more information about listing your event, please contact Lisa Wise lisa@tarawera.co.nz. Last date for entries for the November 2019 issue is October 10.…

1 Development focus for new Hamilton-Auckland partnership Investors looking for future growth hotspots should keep an eye on the “Hamilton-Auckland Corridor” after New Zealand’s first urban growth partnership was signed on Thursday. 2 Changing the game Investors keen to minimise the costs that come with selling properties might want to look to a new real estate agency which is aiming to disrupt the industry. 3 Ronovationz faces $400k fine for price fixing “Super” investor Ron Hoy Fong’s property coaching company, Ronovation Ltd, is staring down the barrel of a hefty $400,000 fine for price fixing. 4 New privacy guidelines welcomed Confusion over what information landlords can ask for when selecting tenants should be eased by a new set of guidelines from the Office of the Privacy Commissioner (OPC). 5 Stronger…

It’s now a legal requirement that rental properties must have ceiling and underfloor insulation. It has been since July 1 this year. But while that date was D-Day, the fact that insulation was to become compulsory has been well-known since 2016. As D-Day approached, there was a flurry of insulation activity as landlords rushed to get their properties compliant*. The majority met that target but some did not and, as tenants can now go to the Tenancy Tribunal over the issue, we are starting to see a slew of insulation rulings come through. And they haven’t gone well for the landlords. In the first insulation case to hit the Tribunal, Kaimai Real Estate v Gamman [2019], the tenants had been raising the issue of insulation for over a year. But…