NZ Property Investor August 2020

There’s no escaping the fact that we are living in uncertain times. It’s why the country continues to hang on to the Government’s daily Covid-19 status updates, why debates over border controls and quarantine continue to rage nationwide, and why the ever-growing flow of economic analyses continue to attract unprecedented attention. It’s all about trying to make sense of a world that has spiralled out of our control as Covid-19’s devastating health and economic impacts have spread. It’s about the search for answers. And it’s about the struggle to wrest insight into what might lie ahead. These same inclinations apply when it comes to the property market too. But, to date, the market is proving difficult to pin down. It’s bounced back strongly post-lockdown, defying sales and price expectations along…

Economist Tony Alexander says there is an “apparent bank reluctance to ease servicing criteria” in the New Zealand market. However, he believes there could be good news on the way for borrowers, with increased competition in the mortgage market, and possible cuts in one- and two-year rates in spring. His latest survey of the property valuer market reveals that volumes of enquiries for house valuations have risen by 50% in July. Alexander says enquiries for valuations to support the refinancing with a new lender of a currently mortgaged residential property have increased – but they have decreased for commercial property. “This makes sense in that there is no evidence to date of any large decreases in residential property values, listings remain in short supply, and there is plentiful evidence of…

Not only does the Yelsa app match prospective buyers with sellers based on their search criteria, but it gives buyers early access to properties before they go on the market. It also puts sellers in direct contact with prospective buyers and allows sellers to take on various functions currently managed by agents. This can help those selling save on often-hefty commission fees. Yelsa chief executive Mike Harvey says the app can benefit investors whether they are looking to buy or sell – especially as the property market is set for a period of extended uncertainty thanks to the economic impact of the Covid-19 crisis. “A reduced fee structure will become important to those wanting to maximise the return on the sale of their property, and savings on marketing and agents’…

Your monthly round up of property investment related events around the country. ONLINE PROPERTY INVESTMENT & EDUCATION SEMINAR Available on demand. Hosted by Gilligan Rowe & Associates and includes Covid-19 property market update. Free to view. For more information and to register, please visit https://www.gra.co.nz/events/property-investment-seminars or phone +64 9 522 7955. PROPERTY SCHOOL SEVEN MODULE ONLINE COURSE Available on demand. Hosted by Gilligan Rowe & Associates. Includes over 12 hours of videos, articles and quizzes. Cost is just $495. For more information and to register: https://www.gra.co.nz/events/graproperty-school or phone +64 9 522 7955. PROPERTY INVESTOR INFORMATION EVENINGS/WEBINARS LIVE EVENTS: Christchurch, August 4, Tauranga, August 12, Hamilton, August 25. ONLINE EVENTS: Auckland and Northland, August 12, South Island, August 25, Wellington and Lower North Island, August 26. Book at https://positiverealestate.co.nz/property-investment-seminar/ PROPERTY INVESTMENT…

1 Tenancy termination ban lifted The end is nigh for emergency tenancy measures introduced during the Covid-19 lockdown with the Government confirming the measures won’t be extended. 2 Select Committee green lights tenancy law reforms Extreme disappointment is the response of property professionals to the Select Committee report on the Government’s proposed tenancy law reforms, which was released this week. 3 Market outlook: what economists have to say Recent residential housing market data has not looked too bad – but, given the grim economic forecasts, that’s a bit confusing. So, here’s a round-up of economists’ latest takes on the market. 4 Huge surge in buyer demand Is it the lure of a bargain? Is it pent-up demand? Whatever the reason, buyer demand for residential property has soared, according to Trade…

This means the two most controversial proposals will become law, unless the Residential Tenancies Amendment Bill does not pass its second reading in Parliament. One proposal is the removal of a landlord’s right to use “no cause” 90-day terminations to end a periodic tenancy agreement. The other is the requirement that fixed-term tenancy agreements become periodic tenancy agreements upon expiry unless both parties agree otherwise. Property professionals say the reforms mean that landlords can’t control who lives in their property and will cause investors to leave the market, pushing up rental prices further. While the NZ Property Investors’ Federation, REINZ, and other landlord advocates campaigned to raise awareness of the likely negative impact of the changes, the Select Committee has not taken their concerns on board. REINZ chief executive Bindi…