NZ Property Investor April 2020

This is not the editorial I thought I’d be writing. Once again. At this time last year, my editorial looked at the Christchurch mosque attacks, rather than the then present threat of a capital gains tax. This year, it will focus on the Covid-19 crisis, rather than the Government’s looming tenancy law reforms. In line with this, the magazine itself looks somewhat different to the one we had initially planned for April. As the Covid-19 outbreak spread and intensified, Government moves to contain it ramped up, and the serious economic impacts became obvious, we realised it had to be addressed. So, at the last minute, we changed our lead article to cover – as best we could, given the rapidly evolving situation – what Covid-19 might mean for the housing…

The bank announced recently that interest-free loans of up to $10,000 to improve energy efficiency will now be available to its home loan customers. Known as Westpac Warm Up, the loans are intended to help fund the purchase of heat pumps, solar panels, ventilation, double-glazing or insulation. Westpac chief executive David McLean says big businesses have a duty to take action on important social, economic and environmental issues like climate change. “We think climate change is the biggest environmental issue we face and is a very real threat to our economy and wellbeing. New Zealand needs to accelerate its response to climate change.” As such, they have an important role in the transition to a cleaner economy through their lending, he says. “That’s why we’re committed to offering products and…

That’s due to an unexpected - but welcome - provision contained in the Government’s $12.1 billion Covid-19 economic stimulus package announced on March 17. The provision reinstates depreciation deductions for commercial and industrial buildings. Depreciation is the process which allows property owners to write off a bit of the value of their assets each year, which reduces their tax bills. It used to be possible for buildings with an estimated life of 50 years or more to be depreciated at a rate of 2% per year. However, from April 2011 on, depreciation deductions on both commercial and residential buildings were no longer allowed. Now, it’s changed again – with a Bill to be introduced shortly which will allow commercial property owners to depreciate buildings (at 2% for the 2020/21 year,…

1 ASB slashes house price forecasts House price growth will drop away to zero over the coming year, according to ASB who have cut their forecasts in response to the coronavirus crisis. 2 What coronavirus means for property investors Welcome to Fortress New Zealand. The coronavirus crisis means that strict travel bans are now in force and a recession is expected. So what does that mean for property investors going forward? 3 On the brink of a crisis Proposed tenancy law changes, which come in an environment of rental shortage, are on the brink of creating a low socioeconomic rental crisis. 4 Removal of no-cause notice opposed by 45% of tenants It’s not just landlords who are opposed to the removal of the no-cause 90-day notice: a new REINZ survey…

APRIL PROPERTY INVESTOR NIGHT Ellerslie, Auckland, April 1; North Auckland, April 2; Christchurch, April 7; Tauranga, April 8; Dunedin, April 21; Hamilton, April 28; Wellington, April 29. 6.30pm. Free to attend. Book at www.positiverealestate.co.nz/NZPI PROPERTY INVESTMENT & EDUCATION SEMINAR April 2 Newmarket, Auckland, 6.45pm. Hosted by Gilligan Rowe & Associates. Free to attend. For more information and to register: https://www.gra.co.nz/property-investment-seminars RONOVATIONZ PROPERTY SEMINAR April 29, 6pm-9pm. Free to attend, includes lunch. For more information visit https://ronovationz.co.nz/seminars/ INVESTING IN APARTMENTS May 17 9am - 5pm. Tickets $47 available at www.granthoey.co.nz. For more information about listing your event, please contact Lisa Wise lisa@tarawera.co.nz. Last date for entries for April 2020 issue, April 6.…

Tenancies War spokesman Mike Butler says the Government should not push through its “radical changes” to tenancy law under the cover of the Covid-19 scare. “Not only do the measures penalise New Zealand’s 290,000 private landlords, many of whom might consequently sell, but they will immediately make it tougher for around one million renters.” That’s because fewer private rental properties will increase demand and raise rents further, getting rid of threatening, anti-social neighbours will take at least three months, and it will be harder for tenants with a tarnished credit or rental history to get a private rental property The Government should put the legislation on hold but, in the meantime, it was critical for landlords to speak out, he says. There was some political support for halting the progress…