NZ Property Investor November 2022

The intensification of our suburbs in our largest cities represents a major change to the way in which New Zealanders live. We've always counted on space, that wonderful quarter-acre dream. But as more of us flock to the bigger centres, that equation no longer works. We can't stretch out our city limits indefinitely, so sections are starting to feel the squeeze. The government and National Party's bipartisan agreement on medium density residential standards (MDRS) allows developers in Auckland, Hamilton, Tauranga, Wellington and Christchurch to build three townhouses, up to three-storeys each, on 50 per cent of land without consent. While this offers opportunities aplenty for developers and investors wanting to maximise potential of their property, it isn't without detractors. The Christchurch City Council has voted against the rules. We look…

UP FRONT NEWS Some empty home owners are not willing to become landlords. One in five participants pulled out of a $500,000 survey and investigation by Wise Group, and paid for by the government, when asked whether they would be willing to put their empty houses into the rental market. Wise Group says it was the biggest drop-off and 22.6 per cent of participants did not answer the question or any following that. Landlords who responded to the survey say they feel vilified and targeted by recent government regulatory and tax changes. They cited negative perceptions and attitudes towards landlords as a barrier to renting houses and say tenants and the general public are often unaware of the realities and, in recent times, the increasing costs of being a landlord.…

UP FRONT NEWS Property managers are in the gun for asking potential renters to share more information than is legally allowed to secure a home, helping shape the case for regulation. Consumer NZ recently used mystery shoppers to find out how much information rental property managers were collecting from renters, potentially breaching the Privacy Act. Six per cent of rental agents asked the mystery shoppers to include bank statements in their application for a rental, which is not allowed under the Office of the Privacy Commissioner's (OPC) guidance for tenants. About 10 per cent of agents encouraged the shoppers to volunteer extra information with a cover letter and rental CV, which could include Information such as age, gender, relationship and employment status. INFORMATION STORAGE Some property managers said the more…

UP FRONT NEWS The West Coast region has taken the top spot as highest performer for residential investors. It has the highest rental yield and second highest capital gains across New Zealand, data from REINZ's latest Capital Gains and Rental Yields Report show. Investors reaped a rental yield of 5.3 per cent from West Coast properties for the six months ending June 2022. Although it was an annual drop of 0.1 per cent, it was the highest yield recorded in the 16 regions. Rental yield is the measure of rental income against purchase price. The report calculated yield by looking at annualised median rent compared to a region's median house price. POSITIVE CHANGE Capital gains were up 19.4 per cent over the same period, the second highest capital gains across…

MATTHEW GILLIGAN Matthew Gilligan is a property investor, developer and tax adviser. He is managing director of chartered accounting firm Gilligan Rowe & Associates, where he heads the specialist property and asset planning divisions. KRIS PEDERSEN Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. Phone 09 486 4719, www.krispedersenmortgages.co.nz MARK WITHERS Mark and his team specialise in advising on property-related transactions, valuation and restructure services, and tax planning. Withers Tsang phone 09 376 8860, www.wt.co.nz RYAN WEIR Ryan is managing director and franchisor of Propertyscouts NZ. He's deputy chairman of the RPMA and is passionate about the property management industry, particularly, raising industry standards. SHANE CAMPBELL A Partner in Wynn Williams' Dispute Resolution Team, Shane specialises in complex commercial…

The housing market failed to thaw in the first month of spring. The REINZ house price index (HPI) posted its 10th consecutive monthly fall in September and house prices are 8.1 per cent lower than a year ago - the biggest annual decline since the GFC in 2009. The median number of days to sell a property held steady at 49 days (seasonally adjusted), still about 10 days above the REINZ average and indicative of further house price falls ahead. House prices are now down 12.6 per cent from their peak in November. In Auckland, the HPI dropped 1.3 per cent in September and is now down 17.3 per cent from its peak. In Wellington, the HPI is down 19.8 per cent from its peak. Canterbury is down 7 per…